A guide to the extension of the Italian lease contract
Many of my clients ask me how to extend a lease. By trying to answer them in the most complete and practical way possible, I have also tried to translate the procedures for foreign customers.
The extension of the lease agreement occurs when there is a renewal, even silent, of the effects of the contract.
On the institutional website of the Revenue Agency it is defined as the extension of the duration of the contract for a further period that must be communicated to the Agency. As with the first registration, the tax due for the extension may be paid for the single annuity or for the entire duration of the extension.
From a legal point of view, the extension of a lease agreement is a renewal of the contract after the expiration of the contract. In this regard, it should be noted that the Italian lease agreements are distinguished between those:
- A canone libero (4+4 years) – articolo 2, comma 1, della Legge n. 431/98;
- A canone agevolato (3+2 years) – articolo 2, commi 3 e 5 della Legge n. 431/98;
- Di natura transitoria – articolo 5, comma 1, della Legge n. 431/98;
- Created to meet the housing requirements of university students – articolo 5, commi 2 e 3 della Legge n. 431/98.
For more information, please read the article What are the rental contracts that can be done in Italy?
I will not talk about the facilitated fee or that for university students because, as already stated in other articles, in the area where I work and where my clients reside, these facilities are unavailable and these contracts are not possible. In addition, I will refer only to housing leases.
Consequences of the extension
From an imposing point of view, the extension of the lease involves:
- The obligation to notify the extension of the contract;
The obligation to pay the registration tax, unless the option for applying the tax flat has been expressed;
The need to express the option for tax flat.
- Within 30 days of the expiration of the lease, the notice on the extension of the lease shall be submitted to the office where the lease was registered;
- Non-payment of the registration tax due to the tacit extensions of real estate leases is sanctioned in accordance with Article 13 of Legislative Decree no. 471/97.
Extension of the contract subject to a tax flat (cedolare secca)
As the tax flat for housing leases replaces the tax on the contract, in the presence of a valid option, the tax on extending the lease is not due, as it is replaced by the tax flat.
If I can still help, write me at firstname.lastname@example.org, I will be happy to answer your questions.
Or visit the section of my rental and rental blog for other articles in the subject by clicking on the link Alice’s Blog – Rent and Leases
Alice – www.ortalloggi.com