The registration of the lease is a major accomplishment when you rent with or without flat-rate tax. Let’s see in detail the obligations, terms, taxes and penalties in case of omitted or late registration.
When registration of the lease is mandatory
The registration of the lease is mandatory if the lease has a duration of more than 30 days total in a calendar year. Therefore, not all those contracts that have a duration of less than 30 days, such as tourist rentals, or that overall in the year have not exceeded 30 days, must not be registered.
For example, Mattia and Marco conclude two tourist rental contracts for the same beach house in 2019, each lasting 20 days. Adding them together, the overall duration is 60 days (20×2 = 40) in the same calendar year. In this case, the second contract will have to be registered as the 30 days of the lease have been exceeded.
How to register the lease?
The registration of the lease can be done electronically on the website of Revenue Fisconline. Generally, accountants (or trade associations and CAFs) have the credentials to access this service. If you want to act independently, you can register online by registering through the following link: Fisconline registration.
An alternative to online registration is to go personally to any office of the Revenue Agency. In this case it is necessary to deliver to the Revenue Agency 2 originals of the lease agreement and the RLI form filled in with the registration request, in addition to the payment receipts for the registration fees. Please note that the owners of at least 10 properties and real estate agents are required to register electronically.
Within 60 days of registration, a communication must be sent to the tenant and to the condominium administrator of the registration.
Contract registration fees
The registration fees for the lease are equal to:
- stamp duty equal to € 16 which must have an issue date no later than the stipulation date and must be applied to each copy of the contract to be registered. The stamp duty must be applied every 4 written sides and, in any case, every 100 lines. In case of online registration, the stamp duty will be calculated by the system
- registration tax equal to 2% of the annual rent for each year of the lease to be paid through Form F24. The amount due for the registration tax may vary depending on the rental property. The Revenue Agency publishes a summary of the registration fees and will calculate the amount due for you at the time of registration. In any case, the registration tax cannot be less than € 67.
If the lease agreement concerns urban real estate and has a multi-year duration, it is possible to choose whether to pay the registration tax for the entire duration of the contract or year by year. For example, if I have entered into a lease contract lasting 4 + 4 years, for an annual rent of € 10,000, if I decide to pay the registration tax for the entire duration of the contract, I will have to pay 2% x € 10,000 x 4 years = € 800. If, on the other hand, I decide to pay the tax year by year, I will have to pay 2% x € 10,000 = € 200 every year.
Lease registration with dry coupon
Taxpayers who have opted for leasing with a dry coupon do not have to pay registration tax or stamp duty but are still required to register the contract.
Please note that the dry coupon option allows you to pay a substitute income tax of 21% on the annual rent if the contract is free of charge or a rate of 10% if the contract has an agreed rent. For more details, you can read our article on how the dry coupon works.
Terms of registration of the lease with the Revenue Agency
The deadline for registering the lease with the Revenue Agency is 30 days from the signing of the contract or from the start of the lease if prior to signature. For example, a lease that starts on November 1st but is signed on November 10th must be registered by December 1st.
Penalties for late or failure to register the lease
The penalties for late or failure to register the lease are very onerous. In the event of failure to register, a penalty ranging from 120% to 240% of the registration tax due is applicable, in addition to interest on arrears. In addition, penalties will also be applied for non-payment of stamp duty ranging from 100% to 150% of this tax.
In case of late registration, the penalties are reduced based on the time elapsed before regularization. Here is a useful summary made by the Revenue Agency on the applicable penalties.
Penalties for non-registration of the lease with coupon dry
In the event of late or non-registration of the lease with coupon dry, the taxpayer must pay a penalty ranging from 120% to 240% of the registration tax calculated on the basis of the registration tax calculated on the agreed rent for the entire duration of the contract, even if the payment of the stamp duty is replaced by the payment of the dry coupon. On this point you can read the Circular n. 26 / E / 2011 of the Revenue Agency.
Also in this case, the penalties for late registration are reduced to the same extent as for leases without coupon dry.
Extension and renewal of the registration of the lease
By extension of the lease it is meant that at the first expiry the lease is automatically extended for the foreseen period. By renewal, on the other hand, we mean a new signing of the lease contract. For example, a 4 + 4 lease is extended after the first 4 years automatically without the need for any communication. There is talk of renewal if at the end of the 8 years the parties decide to continue their rental relationship, being able to insert new conditions (different rent, payment terms, etc.).
Both the extension and the renewal of the lease must be registered using the same procedure as for the first registration of the lease. Registration must be made at the Revenue Agency office where the lease contract was registered within 30 days from the expiry of the contract. For example, a 4 + 4 lease started on June 1, 2019, if it is extended by another 4 years, registration must be done by July 1, 2023.