Revenue Agency: "Those who rent a house must immediately pay us €12,000": there are no exemptions, just pay.

How the flat-rate tax works: rates, taxes, and new developments. Here's what the tax regime confirmed for 2025 provides.

The flat-rate tax (cedolare secca) remains one of the main tax breaks for residential property rentals through 2025. The Budget Law confirmed the introduction of three different rates, calibrated based on the type of contract and lease: 21% for rent-controlled contracts, 10% for rent-controlled contracts, and 26% for short-term rentals . This regime acts as a substitute tax for personal income tax (IRPEF) and related surtaxes, allowing significant tax savings for those who meet the requirements.

The flat-rate tax (cedolare secca) allows property owners to replace their personal income tax (IRPEF) with a single tax calculated on the rent received. By opting for this regime, the landlord waives the ISTAT-based rent increases, but is exempt from paying registration tax and stamp duty. This option can be exercised when registering the lease using the RLI form, or when extending the lease.

Three different rates will remain in effect in 2025. The standard 21% rate applies to open-ended rental agreements, while the reduced 10% rate applies to agreed-upon rental agreements, designed to incentivize the supply of lower-rent housing. The 26% rate for short-term rentals, applicable to those renting more than one property for periods of less than 30 days, has also been confirmed . This measure aims to regulate a constantly expanding market, often linked to online intermediation platforms.

To better understand the rationale behind the different tax rates, consider the case of an owner with seven properties: four for short-term rentals and three rented to students with agreed-upon rent contracts. The first property used for short-term rentals is subject to a 21% flat-rate tax, while the other three are subject to a 26% tax rate. Apartments rented with agreed-upon rent contracts benefit from a reduced 10% flat-rate tax , demonstrating how the progressive tax rate structure rewards stable rentals at controlled prices.

Requirements and advantages of the flat-rate tax

Individuals who own properties intended exclusively for residential use, not connected to a business activity, can opt for the flat-rate tax . The properties must fall within cadastral categories A1 to A11 and may also include related appurtenances. In addition to tax simplification, the flat-rate tax exempts them from paying municipal and regional surcharges, registration tax, and stamp duty, making contract management more streamlined and transparent.

Payment follows the IRPEF calendar, with a down payment and balance. The down payment must be paid in a single installment by November 30th if less than €257.52, or in two installments (June and November) if greater. The balance must be paid by June 30th of the following year. Payments are made using the F24 form with tax codes 1840, 1841, and 1842. Properly managing deadlines is essential to avoid penalties and interest.

Penalties and tax controls

A new penalty regime has been in effect since September 2024, and will remain in effect through 2025. The main violations involve failure to report rent, inaccurate tax returns, and failure to register the contract. Penalties can range from 45% to 140% of the tax due, with minimum amounts set by law. This tightening is intended to ensure greater transparency and combat tax evasion in the rental sector.

The suitability of the flat-rate tax regime depends on the taxpayer's specific situation. The 10% rate remains the most advantageous, while the 21% rate must be evaluated based on overall income and lost tax deductions. Furthermore, rental income fully affects the ISEE (Equivalent Economic Situation Indicator) and does not allow for tax deductions or tax credits. For this reason, before choosing the flat-rate tax regime, it is advisable to consult a tax expert who can assess the true economic benefits on a case-by-case basis.