Flat Tax on Rental Income: Who Qualifies and What You Get
Learn how landlords in Italy can use a flat tax rate on rental income to simplify their taxes and potentially lower their tax burden.
This scheme allows landlords of residential properties to pay a fixed tax rate on their rental income rather than being taxed through standard progressive income tax scales.
Who it's for
This option is available to landlords who rent out residential properties.
What you get
Instead of paying tax through the standard IRPEF system, you can choose a flat tax rate. The rate is typically 21%, but it can be as low as 10% if you use specific agreed-rent contracts.
What it costs you
To use this scheme, you must formally register your lease agreement with the tax authorities.
The catch to know
If you choose this flat tax option, you are not allowed to increase the rent amount for the entire duration of the contract.
How to apply
- Decide on the type of rental contract that best suits your needs.
- Register your lease agreement formally.
- Opt into the flat tax system during the registration process.
- Check the official portal of the tax agency for current filing requirements.