{"id":5066,"date":"2026-04-22T20:32:39","date_gmt":"2026-04-22T18:32:39","guid":{"rendered":"https:\/\/www.immobiliaresanfelice.it\/flat-rate-rental-tax-when-it-pays-and-when-it-does-not\/"},"modified":"2026-10-08T20:03:28","modified_gmt":"2026-10-08T18:03:28","slug":"flat-rate-rental-tax-when-it-pays-and-when-it-does-not","status":"publish","type":"post","link":"https:\/\/www.immobiliaresanfelice.it\/en\/flat-rate-rental-tax-when-it-pays-and-when-it-does-not\/","title":{"rendered":"Flat tax on rental income: when it is convenient and when it is not"},"content":{"rendered":"<p><strong>In Segrate, the flat tax on the agreed rent is 10%, not 21%.<\/strong> The municipality is indeed among those with high housing pressure for two reasons: it borders Milano and is expressly named in CIPE resolution 87\/2003. This is an advantage many property owners in the area are unaware of.<\/p>\n<p>The flat tax is a substitute tax: instead of IRPEF, regional and municipal surcharges, registration tax, and stamp duty on the contract, a fixed rate is paid on the rent. It is provided for by article 3 of legislative decree 23\/2011.<\/p>\n<h2>The rates, and where 10% applies<\/h2>\n<table>\n<thead>\n<tr>\n<th>Type of contract<\/th>\n<th>Rate<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Free rent (4+4, temporary)<\/td>\n<td>21%<\/td>\n<\/tr>\n<tr>\n<td>Agreed rent in municipality with high housing pressure<\/td>\n<td>10%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The 10% rate is not a temporary concession: it was made permanent by article 1, paragraph 6, of law 160\/2019. Without that intervention, it would have risen to 15%.<\/p>\n<p>It applies in municipalities indicated by article 1, letters a) and b), of decree law 551\/1988: Milano and neighboring municipalities, other provincial capitals, and municipalities with high housing pressure identified by CIPE resolution 87\/2003. <strong>Segrate qualifies on both counts<\/strong>, as do Pioltello, Peschiera Borromeo, Cernusco sul Naviglio, Vimodrone, and Cologno Monzese.<\/p>\n<p>Be aware of one operational condition: to apply the 10% rate to an &#8220;unassisted&#8221; agreed contract\u2014that is, one stipulated without the involvement of trade organizations\u2014the <strong>certificate of compliance<\/strong> issued by a signatory territorial agreement organization is required. Without this certification, the reduced rate is contestable.<\/p>\n<h2>Who can use it<\/h2>\n<ul>\n<li><strong>The lessor<\/strong> must be a natural person who is not acting in the exercise of a business, art, or profession.<\/li>\n<li><strong>The property<\/strong> must be registered in categories from A\/1 to A\/11, excluding A\/10 (offices), with related appurtenances.<\/li>\n<li><strong>The tenant<\/strong> must not operate in the exercise of a business or profession.<\/li>\n<\/ul>\n<p>The last requirement is the one most often overlooked: <strong>renting to a company that takes the accommodation for an employee excludes the flat tax.<\/strong> This is the most frequent error among property owners, often realized too late.<\/p>\n<h2>What is lost by choosing it<\/h2>\n<p>The flat tax is not free, and the following three costs must be considered.<\/p>\n<h3>ISTAT rent adjustment<\/h3>\n<p>By opting for the flat tax, you waive adjusting the rent for the entire duration of the option (article 3, paragraph 11, of legislative decree 23\/2011). And note: this waiver is a <strong>condition of effectiveness<\/strong> of the option. It must be communicated to the tenant by prior registered mail or result from an express clause in the contract. Without this, the option is ineffective.<\/p>\n<p>In a 4+4 contract, waiving the adjustment for eight years is not trivial: during a period of sustained inflation, it may outweigh the tax savings.<\/p>\n<h3>Flat 5% deduction<\/h3>\n<p>Under the ordinary IRPEF system, the rent is taxed after a 5% reduction (article 37, paragraph 4-bis, of the TUIR). With the flat tax, 100% of the income is taxed. Also, for agreed contracts in municipalities with high housing pressure, the ordinary regime provides for an <strong>additional 30% reduction<\/strong> pursuant to article 8 of law 431\/1998\u2014which is also lost with the flat tax.<\/p>\n<h3>An indirect effect almost nobody considers<\/h3>\n<p>Income subject to the flat tax is not included in the overall IRPEF income, but <strong>continues to count<\/strong> for eligibility for deductions, allowances, and benefits, including non-tax ones. This is expressly stated in article 3, paragraph 7, of legislative decree 23\/2011.<\/p>\n<p>In other words: it counts for ISEE, family allowances, and income-linked bonuses. Therefore, the double advantage of paying less and appearing as low income is not achieved.<\/p>\n<h2>When the flat tax is not convenient<\/h2>\n<p>On agreed rent, the 10% rate almost always beats IRPEF: it is thirteen points below the first bracket. The case really to evaluate is the <strong>free rent at 21%<\/strong>, and there are three situations where ordinary taxation may be better.<\/p>\n<ul>\n<li><strong>Low-income owner.<\/strong> If you have significant deductions\u2014family burdens, medical expenses, renovations at 50%\u2014and little other income, the flat tax reduces taxable IRPEF income and those deductions become unusable due to lack of tax liability. You pay 21% flat and lose deductions that could have nullified the tax.<\/li>\n<li><strong>Property with expenses to recover.<\/strong> A renovation currently benefiting from a ten-year deduction changes the calculation.<\/li>\n<li><strong>ISEE effect.<\/strong> Those accessing subsidized services may lose benefits of value greater than the tax savings.<\/li>\n<\/ul>\n<p>The comparison must be made on the overall tax situation, not just on the rent. This is an accountant\u2019s verification and is worth doing before exercising the option.<\/p>\n<h2>Short-term leases: what changed from 2026<\/h2>\n<p>For contracts up to 30 days, the rules are different and changed on January 1, 2026. There is a lot of misinformation circulating here, so let\u2019s set it straight.<\/p>\n<p><strong>The standard rate is 26%.<\/strong> The 21% rate is the exception, applicable to income from <strong>a single property chosen by the taxpayer in the declaration<\/strong>. Therefore, it is not &#8220;21% on the first and 26% from the second&#8221;: it is 26% on all, with a reduction to 21% on one chosen property.<\/p>\n<p>The 2026 novelty is the <strong>reduced limit from four to two properties<\/strong> (article 1, paragraph 17, of law 199\/2025). Renting out more than two apartments in the same tax year as short-term leases is presumed to be conducted as a business: a P.IVA is required, with bookkeeping and social security obligations, and the flat tax no longer applies. The thresholds count properties even if located in different municipalities.<\/p>\n<p>The taxable base is the gross consideration, without the flat 5% reduction. The withholding applied by intermediaries and portals is 21% and always <strong>counts as an advance payment<\/strong>, never as final tax.<\/p>\n<p>If you still find articles talking about three brackets at 21%, 26%, and 30% or about a limit of four properties, they are outdated.<\/p>\n<h2>How to exercise and revoke the option<\/h2>\n<p>The option is exercised with the RLI form, when registering the contract or in subsequent years, within thirty days of the expiry of the previous year. It must be accompanied by prior communication to the tenant with the waiver of rent adjustment.<\/p>\n<p>Revocation is possible in any year following the one in which the option was exercised, always within thirty days of the expiry of the previous year, and involves payment of the due registration tax.<\/p>\n<h2>In summary<\/h2>\n<p>In Segrate, the agreed rent allows the flat tax at 10%, and this is the main reason to consider it compared to the free 4+4 lease. On free rent at 21%, the comparison with ordinary IRPEF must instead be made on your overall tax situation, because waiving ISTAT adjustments, losing the 5% deduction, and the effect on deductions can exceed the savings.<\/p>\n<p>If you have a property to rent in Milano San Felice or Segrate and want to understand which <a class=\"isf-link\" href=\"https:\/\/www.immobiliaresanfelice.it\/en\/the-44-tenancy-agreement-how-it-really-works\/\">contract form<\/a> is best for you\u2014agreed with flat tax at 10%, free, or temporary\u2014<a href=\"https:\/\/www.immobiliaresanfelice.it\/en\/properties-wanted\/\">we can calculate together<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Segrate, a 10% rate applies to agreed rent. What is lost by choosing it, the three cases where ordinary IRPEF is more convenient, and the new 2026 rules on short-term leases.<\/p>\n","protected":false},"author":0,"featured_media":5102,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[43],"tags":[],"class_list":["post-5066","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-landlords"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/posts\/5066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/comments?post=5066"}],"version-history":[{"count":3,"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/posts\/5066\/revisions"}],"predecessor-version":[{"id":6578,"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/posts\/5066\/revisions\/6578"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/media\/5102"}],"wp:attachment":[{"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/media?parent=5066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/categories?post=5066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/tags?post=5066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}