Maneuver 2027, flat rate tax on rentals agreed upon at 1% for those under 35

Introduction

The flat rate tax is an optional regime for rental contracts of residential properties made between natural persons who do not act in the exercise of a business or professional activity.

The regime provides for the payment of a substitute tax of Irpef and additional taxes for the income deriving from the rental of the property and the exemption from the payment of registration tax and stamp duty for registrations, terminations and extensions of the contract.

The substitute tax is equal to 21% of the annual rent established by the parties, except for contracts with an agreed rent, for which a rate of 10% is applied.

To respond to the problem of high rents, in the 2027 budget the government has thought about introducing a flat tax which will drop by five points, therefore equal to 5%, for the majority of agreed contracts. But in the case of tenants under 35 it will be reduced to 1%.