Agreed Rent Contract: Who Qualifies and What You Get
Learn how landlords can access tax benefits and lower property taxes by setting rental rates according to local agreements.
The Agreed Rent Contract is a rental agreement where the rent price is set based on specific local agreements rather than being decided entirely by the landlord.
Who it's for
This scheme is for landlords who are willing to rent out their properties at rental rates that follow the specific brackets set by local municipal agreements.
What you get
By using this type of contract, landlords can access significant tax benefits. This includes a reduced rate for the substitute tax (cedolare secca) and a reduction in the municipal property tax (IMU).
What it costs you
The main requirement is that you must keep the rent within the specific price brackets established by your local municipality. You cannot charge higher amounts than what the local agreements allow.
The catch to know
To make this contract valid and qualify for the tax breaks, the agreement must be officially validated by a recognized trade union or a professional association.
How to apply
- Check the local municipal agreements to find the allowed rental price brackets for your property type.
- Draft a rental contract that adheres to these agreed-upon rates.
- Submit the contract to a trade union or association for formal validation.
- Register the validated contract with the relevant tax authorities.