The main types of housing contracts in Italy are the Free Rent Contract (4+4), with a duration of 4 years renewable for another 4 and freely determined rent, and the Agreed Rent Contract (3+2), lasting 3 years renewable for 2, with rent established by territorial agreements. Other types include the Transitional Contract for temporary needs (from 1 to 18 months) and the Contract for university students, with a duration varying between 6 and 36 months.
Here is a more detailed description of the main types of housing contracts:
1) The 4+4 LEASE contract it is a type of rent-free rental, where the owner and tenant set the monthly amount freely. It has an initial minimum duration of 4 years, followed by an automatic renewal for another 4 years. At the end of 8 years, the contract tacitly continues for another 4 years, unless terminated by one of the parties.
Main features:
- Free fee: The parties can establish the amount of the rent without legal constraints.
- Duration: 4 initial years and then automatic renewal for another 4 years.
- Renewal: At the first expiry (4 years), if neither party communicates the cancellation within the established deadlines, the contract is automatically renewed for another 4 years.
- Cancellation: The tenant can withdraw for 'serious reasons' with at least 6 months' notice. The landlord can deny the renewal only in specific cases provided for by law (e.g. personal use or sale of the property), justifying the cancellation with at least 6 months' notice.
- Registration: It is mandatory to register the contract with the Revenue Agency within 30 days of signing.
- Dry coupon: It is possible to opt for this preferential tax regime, which reduces registration costs and the tax to be paid.
Who is it aimed at:
- It is the most common residential rental agreement and used to rent properties for residential use.
- It does not apply to public housing or luxury properties (land registry categories A/1, A/8 and A/9).
2) The TRANSITIONAL contract rent free is a rental agreement for temporary housing needs, which allows the rent to be set independently between the parties. However, this possibility is limited to municipalities with fewer than 10,000 inhabitants or for contracts lasting less than 30 days. In municipalities with more than 10,000 inhabitants, it is mandatory to use the agreed fee.
Characteristics of the transitional contract.
- Duration: It has a maximum duration of 18 months and must justify a temporary need of the tenant or owner (e.g. study reasons or temporary work).
- Transitional need: The transitional need that justifies the limited duration of the rental must be indicated and documented in the contract.
- Registration: The contract must be drawn up in writing and registered with the Revenue Agency within 30 days of signing.
- Expiration: The contract ends automatically upon expiry, without the need for cancellation.
Limitations on the use of free rent.
- In municipalities with more than 10,000 inhabitants, it is mandatory to use a contract with agreed rent, i.e. established on the basis of territorial agreements between owners' associations and tenants' unions.
- Therefore, in larger centres, it is not possible to stipulate a temporary rental contract with free rent.
3) The contract a AGREED FEE 3+2 it is a residential rental agreement with a minimum duration of 3 years, automatically extendable by another 2, for a total of 5 years, unless cancelled. It is called 'agreed rent' because the rent is not freely established between the parties, but must fall within limits established by local territorial agreements between associations of owners and tenants. This type of contract offers tax advantages to both the landlord and the tenant and promotes access to housing under more sustainable conditions, especially in areas with high housing tension.
Duration and Renewal
- Initial duration: 3 years.
- Automatic renewal: At the first expiration, the contract is automatically extended for another 2 years, unless one of the parties communicates the cancellation with at least 6 months' notice.
- Final deadline: At the end of the 5 years, the contract is automatically renewed for 2 years under the same conditions, unless canceled by one of the parties.
Main Features
- Agreed Fee: the rental fee is established on the basis of territorial agreements which consider the type of property and the location area, creating a balance between market conditions and price.
- Purpose: the objective is to encourage access to rental accommodation at more accessible conditions, offering contractual stability to both owners and tenants.
Advantages
- For Landlords: benefit from tax breaks, such as a reduction in the dry tax rate to 10% (from 21%) or a reduced tax base for the purposes of IRPEF and registration tax, as well as possible IMU breaks.
- For Drivers: they can access a lower rent than rent-free contracts and, if they use the property as their main residence, they can enjoy tax deductions.
4) The 'contracts for UNIVERSITY STUDENTS' they are rental contracts specific transitional periods that allow non-resident students to rent a house temporarily for study purposes, with a duration of between 6 and 36 months. These contracts must be stipulated using a specific ministerial model, registered with the Revenue Agency and offer tax breaks to both the owner and the student (or his parents).
Main features:
- Duration: minimum 6 months, maximum 36 months.
- Scope: rent a house to study away from home, so they are temporary (transitional) contracts.
- Conditions: the condition of an off-site university student is required, who needs to live in the place of study.
- Model: the specific form prepared by the Ministry of Infrastructure and Transport must be used.
- Registration mandatory: the contract must be registered with the Revenue Agency within 30 days of signing.
Tax breaks:
- For the student (or parents): possibility of deducting 19% of the rent from Irpef, within the limit of 2,633.00 euros per year.
- For the owner: advantages in the case of flat tax or ordinary regime, such as IRPEF deductions and exemption from registration and stamp duty, based on the type of contract.
How renewal works:
- Upon expiration of the contract, it is automatically renewed for an equal period if neither party communicates the intention not to renew it.
- The student can cancel with at least one month's notice.
5) The TOURIST contract it is a written agreement that defines the conditions of a holiday stay, usually for a maximum period of 30 days, between a guest (tourist) and a host (owner). This rental contract for residential use is for holidays and is stipulated in written form, specifying the duration, the fee, and the obligations of the parties, and is managed by the rental platforms or directly between private individuals.
Main Features
- Tourist Purpose: the purpose is the enjoyment of a holiday, excluding other uses.
- Limited duration: tourist rental contracts have a duration of no more than 30 days, but the period can be agreed between the parties.
- Written form: The written form of the contract is mandatory, which must clearly indicate the tourist destination and other details of the stay.
- Automation: at the end of the rental period, the contract ends automatically without the need for cancellation.
What It Must Contain
- Parts data: Name and surname of the landlord and the tenant (guest).
- Property details: Description of the property, including rooms and furnishings.
- Duration: Specific period of stay, from the day of arrival to the day of departure.
- Fee and payments: Total rental amount and payment methods.
- Obligations and prohibitions: Prohibition of subleasing and other clauses regarding the use of the property.
- Deposit: Amount of the security deposit, to be returned at the end of the stay following inspection of the property.
6) The ad contract GUEST USE it is a type of rental in which a legal person (like a company) rents a property to use as temporary accommodation for its employees or collaborators for professional needs. Unlike traditional rental agreements, this agreement offers greater flexibility in duration and rent, as it is not subject to the Residential Tenancies Act. It presents tax advantages for the operating company, which can deduct the costs, and is subject to registration with standard costs provided for by the Civil Code.
Main Features
- Tenant (tenant) is a company: the contract is stipulated between the owner (landlord) and a legal person (tenant) who makes the property available to its staff.
- Temporary intended use: the accommodation is used to satisfy professional and transitory needs, such as the transfer of an employee for a project.
- Contractual flexibility: the parties can freely establish duration and rent, since the law on residential tenancies does not apply.
- Different from the housing contract: the guesthouse use is a commercial/professional contract, not a rental contract for private or tourist use, which involves regulatory and tax differences.
Advantages
- Flexibility: the company can stipulate tailor-made agreements to respond to specific and temporary work needs.
- Tax advantages: for the leasing company, the fees paid and expenses are tax deductible, representing an incentive for the company.
- Greater solvency: the assessment of the tenant's solvency is simpler, given that it is a legal person.
Tax aspects and registration
- Registry tax: the cost for registration is 2% of the annual rent plus stamp duty.
- Dry coupon not applicable: it is not possible to benefit from the flat rate tax regime, unlike some rentals between private individuals.
- Registration: like all rental contracts, it must be registered with the Revenue Agency within 30 days of signing.
