Rental Contract in Italy [4+4, student & temporary leases explained]

As you can see from the table, some contracts are governed by Law No. 431 of 1998, while others follow civil law provisions. What’s the difference?

Depending on how long you plan to stay and your purpose, you might already have an idea of which contract could suit you best. Setting aside short-term tourist rentals, most of my clients go for the 4+4 contract, which I’ll focus on in the next section.

The Long-term Lease Contract [4+4 years]

Minimum Contract Duration

The most common rental contract in Italy is the standard free-market lease, which requires a minimum duration of 4 years, followed by an automatic renewal for an additional 4 years. That’s why it’s often called the “4+4” in real estate jargon.

By law, the long-term lease can be renewed multiple times, with a total maximum duration of 30 years. While the long-term lease formula is the most widely used, it’s not the only option out there. I’ve personally come across contracts structured as 6+4 or even 8+4! So, while 4 years is the minimum period the landlord is required to follow, longer initial terms are possible.

If the first part of the free-market lease must last at least 4 years (but can be longer), the renewal period is always set at 4 years.

And what about the tenant, you ask? Stay tuned, we'll get to that.

Termination (“Recesso”)

Pro tip: If you're unsure whether you'll stay in the property for eight years, I strongly recommend adding an exit option clause to your contract. Contact me for more details!

Non-Renewal (“Disdetta”)

The landlord can only refuse to renew the contract at the first four-year term’s end, if one of the following situations applies (Article 3, Paragraph 1, Law No. 431/98 ^[1]):

• The property will be used by a close relative (within the second degree).
• The property or building needs to undergo major renovations.
• The property is being sold, and the landlord does not own another property to sell (in which case, the tenant has the right of first refusal).

Be aware: in the termination notice, the specific reason must be clearly stated, or the notice is invalid. If the tenant later discovers they were deceived, they’re entitled to compensation of up to 36 months of rent!

After the second term (the eighth year for a free-market contract), the landlord does not need to provide any justification for ending the contract.

Renewal (“Rinnovo”)

If no termination notice is given at the second term (after the eighth year), the contract automatically renews under the same conditions.

Rent (“Canone”)

In a “4+4” contract, the rent can be freely negotiated between the parties, as in a free market, as well as the payment terms. Personally, I often request quarterly payments in advance.

However, in the case of a "3+2," temporary, or university student contract, the rent is regulated by the local municipality where the property is located to meet tenants' needs.

Security Deposit (“Deposito cauzionale”)

The security deposit, or “advance” to cover potential damage to the property, is legally capped at a maximum of three months' rent in advance. Any request beyond this is illegal.

Remember, you can also opt for a surety bond (fidejussione) to cover both potential damages and rent defaults.

Need the perfect lease in Italy? Contact us for expert guidance on 4+4, student, and temporary rental contracts. Let’s find your ideal home!

Right of First Refusal (“Diritto di prelazione”)

If the landlord decides to sell the property at the first contract expiration (4th year), they are legally required to offer it to the tenant first. The tenant, having the right of first refusal, can choose to buy the property at the price offered. If the tenant agrees to the sale, the landlord is obligated to sell the property to them.

Additionally, the tenant also has the right of first refusal for a new lease, if the property has undergone major renovations and is put back on the rental market.

Notification to Authorities (“Comunicazione in Questura”)

If the tenant is a foreign national or stateless person, the landlord must notify the local public security authority within 48 hours of the tenant moving in.

Rent Adjustment (“Adeguamento canone ISTAT”)

In Italy, ISTAT (National Institute of Statistics) tracks prices and inflation nationwide.

Rental rates may be adjusted based on ISTAT inflation data, if the landlord chooses to pay taxes under the standard IRPEF system. However, if the landlord opts for the Cedolare secca flat tax system, the ISTAT adjustment does not apply.

Think that's everything?

Nooo, don’t even think about it! There’s still a long (and rather boring) list to cover: additional charges, condo fees, utilities, guarantees, maintenance, subletting, occupancy indemnity, termination clauses, photographic inventory… and the list goes on.

It may not be glamorous, but these details are crucial to understanding the full picture of a rental contract.

Other rental contracts

Agreed rent 3+2 (“Concordato 3+2”)

Unlike the 4+4 contract, the 3+2 lease has a minimum duration of 3 years, followed by a 2-year renewal. The rent is regulated, and the landlord enjoys certain tax benefits.

If the property is located in a high-density area, the fiscal benefits include:

• A 30% reduction in the taxable rent for IRPEF.
• Only 49.5% of the annual rent is declared on the tax return.
• A flat 5% tax deduction.

The agreed rent is set by the municipality, taking into account the area, property finishes, accessories, services, and more.

Temporary Contract (“Transitorio”)

The temporary contract is used for specific, short-term situations, like job relocation or divorce, where the rental period is quite limited. The minimum duration is 1 month, and the maximum is 18 months. In this case, too, the rent is regulated by the municipality.

Once the agreed rental period ends, the contract is automatically considered terminated, with no need for a notice of non-renewal.

Looking for a hassle-free rental in Italy? We’ll guide you through the process and secure the best contract for you. Contact us today!

Students

This contract is tailor-made for off-campus university students and can only be used for properties in municipalities with university campuses, where tenants are not local residents.

The contract duration ranges from 6 months to 3 years and features regulated rent to make it easier for students to afford housing. In return, landlords enjoy various tax benefits.

However, because of the young age and inexperience of tenants, some landlords take advantage of the situation by charging market rates instead of the regulated rent. If the student finds out, not only can the contract be declared void, but with the help of a lawyer, they can recover any excess payments made.

Guesthouse Contracts (“Foresteria”)

The unique aspect of the guesthouse rental contract is that it’s not signed by the tenant but by the company, which uses the property for employees who are working away from home. This is a popular option for large companies that frequently send employees on extended business trips.

The main benefit for companies is that maintenance costs are tax-deductible for up to 3 years. However, be aware that applying the cedolare secca flat tax system may be problematic in these cases.

Luxury and Historic Properties

For luxury properties (classified under A/1, A/8, A/9) or properties of historical interest, a completely free contract applies. This means that the duration, rent, and any other clauses can be freely negotiated, as long as they do not conflict with the Italian Civil Code. This provides both landlords and tenants with maximum flexibility.

Touristic Rentals

Tourist rentals are another common type of contract in Italy.

This type of lease comes with far fewer restrictions: it can be signed for a single day or for several months. If the rental period is less than 30 days, the contract doesn't even need to be registered. This makes it a flexible option for both short and medium-term stays.

Rental taxes

Regardless of the type of contract you choose, the Italian government will collect taxes on any income your property generates. The way these taxes are calculated depends on whether the owner is an individual or a company. Here, we’ll focus only on individuals, who have two tax options: IRPEF or Cedolare secca.

Here’s a comparison table between the two options:

Cedolare secca – IRPEF comparison

	Cedolare secca	IRPEF
Tax rate	21% (10% for regulated rent)	IRPEF on 95% of the rent (66.5% for agreed rent)
Registration fee	NO	2% of the annual rent
Stamp duty	NO	€16 every 4 pages
Property type	Residential (A/1 to A/11, excluding A/10) and appurtenances	Any type
Rent adjustment (ISTAT)	NO	Possible

This table highlights the key differences between Cedolare secca and IRPEF, giving you a clear view of the costs and benefits of each system. Cedolare secca offers a simplified tax process with lower rates for regulated rent contracts, but it restricts rent adjustments according to inflation (ISTAT). IRPEF, on the other hand, applies a more complex tax scheme but allows for rent adjustments and is available for all types of properties.

It's no surprise that 99% of my clients (myself included) choose Cedolare secca. The standard IRPEF regime might be advantageous only if your income is under €15,000 or in cases of hyperinflation, where the rent adjustment could significantly impact the rent amount.

Registering the Lease Contract

Any lease contract with a duration longer than 30 days must be registered with the Italian Revenue Agency (Agenzia delle Entrate).

The easiest way to do this is online through the Fisconline service on their website^[2]. Both professionals and everyday citizens (with a SPID digital identity) can access the online registration.

For lease registration, you’re typically required to pay a registration tax and stamp duties (specifically, one stamp duty for every 100 lines or 4 pages of the contract), which apply for each year of the lease.

However, if you opt for Cedolare secca, you don't have to pay either the registration tax or stamp duties. It's completely free!

Registration Tax and Stamp Duty

Type	Registration Tax	Stamp Duty
Free Market (Canone Libero)	2% of the annual rent (min €67)	€16 every 4 pages or 100 lines
Regulated Rent (Canone Regolamentato)	2% of the annual rent minus 30% (min €67)	No stamp duty required
Cedolare secca	No registration tax	No stamp duty

Who is responsible for registration?

According to Article 13, Paragraph 1, of Law 431/98, the landlord is responsible for registering the contract within 30 days of signing. They must also inform the tenant of the registration details within 60 days.

Who pays for the registration?

Per Article 8 of Law 392/78, registration fees are split 50/50 between the landlord and tenant. However, be careful: if the landlord fails to pay their share, both parties are held jointly liable, meaning the tenant could be asked to cover the shortfall.

What happens if the contract is not registered?

If the contract isn’t registered, the consequences are severe. The Agenzia delle Entrate will demand the unpaid registration taxes from both the landlord and tenant, who are jointly liable. But that’s just the beginning. Here are two major issues you could face:

• The tenant may claim back all rent paid within 6 months after vacating the property.
• If the tenant refuses to leave at the end of the lease, the landlord cannot evict them through standard procedures. Instead, they would have to pursue a lengthy and costly ordinary lawsuit.

In short: not registering your lease can lead to a lot of trouble!

Elena Manzhos: Mother of two beautiful children, wife, and real estate agent for over 15 years. More than 20 years ago,  I moved to Italy from Eastern Europe. I have always had a deep-seated passion for houses; as a child for the Barbie house, and now as a real estate professional, my love for luxurious properties is unwavering.
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