How Much Does It Cost To Register a Rental Contract in Italy

How Much Does It Cost To Register a Rental Contract in Italy

Cost To Register a Rental Contract- 

Italy is a place where you can find a myriad of apartments, vacation rentals, holiday homes, and much more. If you are also thinking of buying one, then we suggest go for it. Also, if you have already bought one, then you should consider getting it registered as a rental property. For this, you have to sign a rental contract with the concerned department. Don't worry about the details of it, we are here to tell you how much does it cost for apartments in Italy to get registered as a rental property. 

The main things you have to pay for in a rental contract in Italy is the registration tax and the stamp duty. You can also opt for the dry coupon if you are eligible for it. 

Lease Registration

Lease registration is the first step in buying a property, and you have to pay a registration fee at this point also. The number of fees to be paid depends upon the size of your property and the nature of its use. For example, if it's for residential use, it's 2%, for industrial buildings it's 1% of the annual rent if the lease is by VAT taxable person. For other rental contracts, it's usually 2%. of the annual rent. 

Registration Tax

If there is an agreed rental contract for properties such as apartments in Italy, then the tax to be paid is calculated after a 30% reduction in the base, only if the location of the property is in the areas where is high residential tension. The lessor and the tenant are jointly liable for the full payment of the amount for registration of a rental contract.

After the first year, if a lease is lasting for several years there are two options available. The tax can be paid for the entire duration of the contract at a 2% rate, or it can be paid by 2% every year within the expiry of 30 days from the previous year. If the amount is paid with the first method, then you can be entitled to a deduction that is equal to half of the interest rate due multiplied by a number of annuities. You don't have to worry about the refund of the tax in case it is terminated. In this case, the amount of tax paid for the subsequent years not entitled is going to e refunded to you. 

If you want to go for an extension, then tax can be paid either on a lump sum or yearly. So you need not worry about the increase in legal formalities in case of extensions or terminations. 

Stamp Duty

Stamp duty is very easy and simple in Italy. For every 4 written sides of the contract, the stamp duty is 16 Euros. Each copy that needs to be registered has a stamp duty which should be duly paid. 

You do not need to worry about anything, the procedure in Italy is pretty simple and the department is eager to help you out. In case of any problems. you can consult an accountant or a legal expert in these matters.

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