{"id":5075,"date":"2026-05-13T20:32:39","date_gmt":"2026-05-13T18:32:39","guid":{"rendered":"https:\/\/www.immobiliaresanfelice.it\/the-44-tenancy-agreement-how-it-really-works\/"},"modified":"2026-10-08T19:53:17","modified_gmt":"2026-10-08T17:53:17","slug":"the-44-tenancy-agreement-how-it-really-works","status":"publish","type":"post","link":"https:\/\/www.immobiliaresanfelice.it\/en\/the-44-tenancy-agreement-how-it-really-works\/","title":{"rendered":"4+4 Lease Contract: How It Really Works"},"content":{"rendered":"

The 4+4 contract lasts four years and is automatically renewed for another four years.<\/strong> At the first expiration, the landlord can deny the renewal only in seven specific cases provided by law, with six months’ notice and stating the specific reason under penalty of nullity. At the second expiration, however, both parties may freely decide not to renew.<\/p>\n

It is the free-rent contract governed by law 431\/1998: you decide the rent, but not the duration and exit conditions. Renters who rent thinking they can regain possession of the property when needed often discover too late how binding this obligation is.<\/p>\n

How the duration works<\/h2>\n

Article 2, paragraph 1, of law 431\/1998 establishes a duration of no less than four years, after which the contract renews for another four years. In the absence of notice, the renewal is tacit and under the same conditions. Written form is mandatory (article 1, paragraph 4).<\/p>\n\n\n\n\n\n\n\n\n
Who<\/th>\nWhen<\/th>\nNotice<\/th>\nIs a reason required?<\/th>\n<\/tr>\n<\/thead>\n
Landlord, 1st expiration (4th year)<\/td>\nOnly at expiration<\/td>\n6 months<\/td>\nYes<\/strong>, one of the 7 specific cases under penalty of nullity<\/td>\n<\/tr>\n
Landlord, 2nd expiration (8th year)<\/td>\nOnly at expiration<\/td>\n6 months<\/td>\nNo<\/td>\n<\/tr>\n
Tenant, any time<\/td>\nAlways<\/td>\n6 months<\/td>\nYes, serious reasons<\/td>\n<\/tr>\n
Tenant, at expiration<\/td>\n4th or 8th year<\/td>\n6 months<\/td>\nNo<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The seven cases to deny renewal at the first expiration<\/h2>\n

They are listed in article 3 of law 431\/1998 and are exhaustive: outside of these, renewal is automatic.<\/p>\n

    \n
  1. The landlord intends to allocate the property for residential, commercial, artisanal, or professional use by themselves, spouse, parents, children, or relatives within the second degree<\/strong>.<\/li>\n
  2. The landlord is a legal entity or an organization with public, social, mutual, cooperative, welfare, cultural, or religious purposes and allocates the property to such activities offering the tenant another suitable property<\/strong>.<\/li>\n
  3. The tenant has full availability of a free and suitable dwelling in the same municipality<\/strong>.<\/li>\n
  4. The property is in a seriously damaged<\/strong> building, to be reconstructed or whose stability must be ensured.<\/li>\n
  5. A complete renovation<\/strong>, demolition, or radical transformation is planned.<\/li>\n
  6. The tenant does not continuously occupy<\/strong> the property without justified reason.<\/li>\n
  7. The landlord intends to sell to third parties<\/strong> and does not own other residential properties<\/strong> besides the one possibly used as their own residence.<\/li>\n<\/ol>\n

    The seventh case deserves attention because it is often believed to be broader than it is: simply wanting to sell is not enough. It is also necessary not to have other residential properties. Those owning two apartments besides their residence cannot use it.<\/p>\n

    Sanctions if refusal is illegitimate<\/h3>\n

    They are not symbolic. An illegitimate refusal exposes to damages of no less than thirty-six months<\/strong> of the last rent (article 3, paragraph 3). And if the landlord regains possession but does not allocate it within twelve months<\/strong> as declared, the tenant has the right to contract reinstatement under the same conditions or damages (paragraph 5).<\/p>\n

    The Court of Cassation, with ordinance 9851 of 2022, established a presumption of seriousness of the landlord’s declaration: a serious manifestation of intent suffices, not strict proof. But verification follows after, based on facts of the following twelve months.<\/p>\n

    Tenant’s termination<\/h2>\n

    The tenant may terminate at any time for serious reasons<\/strong>, with six months’ notice. Serious reasons must be external to their will, unforeseeable, and occurred after signing, making continuation excessively burdensome, and must be specified in the registered letter<\/strong>: a generic mention is insufficient.<\/p>\n

    Many contracts, however, include a clause for free termination<\/strong> by the tenant, with three or six months’ notice and without the need for serious reasons. It is fully valid, as it benefits the tenant. For the landlord, it is a negotiating point to consider: it makes the property more attractive but reduces income stability.<\/p>\n

    4+4 free or 3+2 agreed?<\/h2>\n

    This choice has the greatest impact, and in Segrate it has a precise economic answer because the municipality is among those with high housing pressure.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
    <\/th>\n4+4 at free rent<\/th>\n3+2 at agreed rent<\/th>\n<\/tr>\n<\/thead>\n
    Duration<\/td>\n4 + 4<\/td>\n3 + automatic extension of 2 years<\/td>\n<\/tr>\n
    Rent<\/td>\nFree<\/td>\nBound to territorial agreements<\/td>\n<\/tr>\n
    Flat tax<\/a><\/td>\n21%<\/td>\n10%<\/strong> (Segrate qualifies)<\/td>\n<\/tr>\n
    Ordinary IRPEF<\/td>\n5% deduction<\/td>\n5% plus an additional 30%<\/strong><\/td>\n<\/tr>\n
    Registration tax<\/td>\n2% on full rent<\/td>\n2% on a base reduced by 30%<\/td>\n<\/tr>\n
    IMU<\/td>\nStandard<\/td>\n25% reduction<\/strong><\/td>\n<\/tr>\n
    Certificate of compliance<\/td>\nNot required<\/td>\nRequired if contract is not assisted<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    The agreed rent is lower, but tax advantages are significant and accumulate in Segrate. The calculation must be done case by case: in various situations, the net income from the 3+2 exceeds that of the 4+4, despite the lower gross rent.<\/p>\n

    Registration<\/h2>\n

    The contract must be registered within thirty days<\/strong> of signing or commencement if earlier. The obligation lies with the landlord (article 13, paragraph 1, of law 431\/1998), who must then provide documented notice, within the next sixty days, to the tenant and to the building administrator<\/strong>. For tax purposes, landlord and tenant are jointly liable for the tax.<\/p>\n\n\n\n\n\n\n\n\n
    Item (ordinary regime)<\/th>\nAmount<\/th>\n<\/tr>\n<\/thead>\n
    Registration tax<\/td>\n2% of the annual rent times number of years<\/td>\n<\/tr>\n
    Minimum for first year<\/td>\n67 euros<\/td>\n<\/tr>\n
    Agreed rent in a high housing pressure municipality<\/td>\nBase reduced by 30%<\/td>\n<\/tr>\n
    Stamp duty<\/td>\n16 euros every 4 pages and in any case every 100 lines, per copy<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Opting for the flat tax, registration and stamp duties are not due<\/strong>\u2014neither for registration nor for terminations and extensions. It is one of the lesser-known advantages of the flat tax and should be considered when comparing regimes.<\/p>\n

    Electronic registration with form RLI is mandatory for those owning at least ten properties and for real estate agents; for others, it is optional.<\/p>\n

    What happens if it is not registered<\/h2>\n

    An unregistered contract is null<\/strong> (article 1, paragraph 346, of law 311\/2004). However, it is a curable nullity: the United Sections of the Court of Cassation, through sentence 23601 of October 9, 2017, established that late registration cures the nullity with retroactive effect<\/strong>. The cure applies only if the registered rent is the actual one.<\/p>\n

    Sanctions have been recently reformed, and most figures circulating online are outdated:<\/p>\n\n\n\n\n\n\n
    Delay<\/th>\nSanction<\/th>\n<\/tr>\n<\/thead>\n
    Within 30 days<\/td>\n45% of the tax, minimum 150 euros<\/td>\n<\/tr>\n
    Beyond 30 days (omitted registration)<\/td>\n120% of the tax, minimum 250 euros<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    The old regime provided 120% to 240%: if you still see this, the info is outdated. For multi-year contracts with annual tax payment, the sanction is based on the tax of only the first year<\/strong> \u2014 as clarified by the Revenue Agency with resolution 56 of October 13, 2025, aligning with the Court of Cassation.<\/p>\n

    There is a more serious risk than the sanction. Any agreement aimed at setting a rent higher<\/strong> than that in the written and registered contract is null, and the tenant can act within six months after returning the property to recover excess payments (article 13 of law 431\/1998).<\/p>\n

    In summary<\/h2>\n

    The 4+4 binds for eight years except for the seven specific denial cases at the first expiration, and sanctions for illegitimate denial start at thirty-six months. In Segrate, it is worth seriously comparing it with the 3+2 agreed contract, which allows the flat tax at 10% and a 25% IMU reduction. Registration within thirty days is the landlord’s obligation and costs nothing with the flat tax.<\/p>\n

    If you have a property for rent in Milano San Felice or Segrate, the choice of contract form is the decision that most affects your net income. We can do the comparison based on your numbers<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Duration, the seven specific cases to deny renewal, sanctions from 36 months’ rent, and the comparison with the 3+2 agreed contract that is more advantageous in Segrate than it seems.<\/p>\n","protected":false},"author":0,"featured_media":6568,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[43],"tags":[],"class_list":["post-5075","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\/5075","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=5075"}],"version-history":[{"count":1,"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/posts\/5075\/revisions"}],"predecessor-version":[{"id":6569,"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/posts\/5075\/revisions\/6569"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/media\/6568"}],"wp:attachment":[{"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/media?parent=5075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/categories?post=5075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.immobiliaresanfelice.it\/en\/wp-json\/wp\/v2\/tags?post=5075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}