Renting & Tenancy

Types of Rental Contracts

Italian rental agreements (Contratti di Locazione) fall into four main categories. The type of contract dictates the duration, the rent control rules, and the tax benefits for the landlord.

1. Free Market Contract (Canone Libero 4+4)

This is the standard lease for families and long-term residents.

• Duration: 4 years, automatically renewable for another 4 years.
• Rent: Freely negotiated between landlord and tenant.
• Termination: The landlord generally cannot cancel the contract after the first 4 years unless they intend to sell the property or move in themselves.

2. Agreed Fee Contract (Canone Concordato 3+2)

This contract offers lower taxes for the landlord in exchange for lower rent for the tenant.

• Duration: 3 years, automatically renewable for 2 years.
• Rent: Capped by agreements between local tenant unions and property owner associations. The rent is often below market value.

3. Transitory Contract (Uso Transitorio)

Designed for temporary stays (e.g., short-term work assignments, renovations of one's own home).

• Duration: Minimum 1 month, maximum 18 months. Non-renewable.
• Requirement: The contract must state a specific reason for the transience (e.g., a letter from an employer stating the duration of a project). Without this proof, it may legally revert to a standard 4+4 contract.

4. Student Contract (Uso Studenti)

Specific to university towns.

• Duration: 6 to 36 months.
• Requirement: Proof of university enrollment is mandatory.

Costs and Fees

Beyond the monthly rent, tenants must budget for substantial upfront costs.

Security Deposit (Deposito Cauzionale)

This protects the landlord against damages. By law, it cannot exceed 3 months' rent.
It must be returned at the end of the lease after an inspection, plus legal interest (though interest is often waived in the contract). It cannot be used to pay the last few months of rent.

Agency Fees (Provvigione)

If you find a house through a real estate agent (Agente Immobiliare), the standard fee is:

• 10% to 15% of the annual rent + 22% VAT (IVA).
• Or 1 month's rent + 22% VAT.

Condominium Fees (Spese Condominiali)

In apartment buildings, tenants pay a monthly fee for shared services.

• Includes: Cleaning of stairs, elevator maintenance, shared electricity, and often water/heating if centralized.
• Excludes: Structural repairs (e.g., fixing the roof), which are the owner's responsibility.

Mandatory Registration

Any rental contract lasting longer than 30 days must be registered with the Revenue Agency (Agenzia delle Entrate) to be legally valid. An unregistered contract (contratto in nero) leaves the tenant with zero legal protection.

• Deadline: Within 30 days of signing.
• Who pays? The cost is usually split 50/50 between landlord and tenant.
• Registration Tax: 2% of the annual rent (minimum €67 / ~$78 USD) plus €16 (~$19 USD) in stamp duty for every 4 pages.
• The "Cedolare Secca" Exception: If the landlord opts for the "Flat Tax" regime (Cedolare Secca), registration taxes and stamp duties are waived. This is very common in residential leases.

Maintenance Duties

Italian Civil Code clearly divides maintenance responsibilities:

Termination (Disdetta)

Ending a contract early requires formal notice via registered mail (Raccomandata A/R) or certified email (PEC).

Tenant's Rights

Tenants can typically break the lease at any time for "serious reasons" (gravi motivi) with a 6-month notice period.
Tip: Foreigners should negotiate a "Diplomatic Clause" allowing cancellation with 3 months' notice without needing to prove "serious reasons."

Landlord's Rights

Landlords have very limited rights to terminate early. They must usually wait for the contract's natural expiration (e.g., after the first 4 years) and provide 6 months' notice. They cannot evict a tenant simply to rent to someone else for a higher price during the contract term.