Lease contract at a reduced rate 3+2: how it helps with savings
Thanks to the discounted rental contract, landlords save on taxes and renters benefit from cheaper rent.
Rental prices for homes in Italy have risen sharply in recent years, leading to a strange situation: many homes remain unoccupied while young families and vulnerable groups struggle to secure affordable housing. In this scenario, renting under special conditions becomes advantageous for both property owners and tenants.
What is a reduced rate lease?
When homes remain empty and market rent becomes too expensive, especially for socially vulnerable groups, reduced rent offers a solution. This is a special type of lease where the rent is lower than the market rate, making housing more accessible.
This type of rental is based on territorial agreements made between landlord and tenant representatives. It ensures stability in rental housing and lowers the risk of empty properties for owners.
What does "reduced rate lease" mean?
Under Article 2, paragraph 3 of Law No. 431/1998, it is possible to sign lease agreements at an agreed rate (also called reduced rates), which are regulated by conditions established locally through formal agreements between party representatives.
The rent amount is determined according to these local agreements. The minimum duration of such a lease is three years, with the option to extend for another two years (3+2 formula), as outlined in paragraph 5 of the same legal article.
Tax benefits for owners
Why do landlords agree to lower rents? The law offers several tax advantages:
When submitting a Form 730 tax return, the taxable rental income is 66.5% of the actual amount (instead of 85%) unless the 'cedolare secca' option is chosen.
The contract registration tax has been reduced to 1.4% of the rental amount (instead of the usual 2%) and is split between the landlord and tenant.
When opting for the 'cedolare secca' regime, a reduced tax rate of only 10% applies.
In some instances, a lower IMU tax rate is available: instead of the standard 7.6–10.6‰, a rate of 4‰ can be used for properties rented at a reduced rate.
Benefits for tenants
Renters also enjoy tax deductions if the leased apartment is their primary residence:
For incomes up to 15,493.71 euros annually, the deduction is 495.80 euros.
For incomes between 15,493.71 and 30,987.41 euros, the deduction is 247.90 euros.
If the tenant is aged 20 to 30, with income under 15,492.71 euros, and the home is the main residence, the deduction increases to 991.60 euros a year for the first three years.
What is an attestazione and when is it needed?
If a reduced rate lease is signed without the involvement of professional organizations (like unions), a special confirmation (attestazione) from one of these organizations is necessary. This document verifies that the contract adheres to the territorial agreement's terms. It is required for:
Applying preferential taxation (for example, 'cedolare secca' at 10%).
Securing tax deductions under a lease agreement by submitting Form 730.
Thus, parties can enter into a 3+2 lease agreement:
Either with the help of specialized organizations;
Or independently, but with subsequent receipt of an attestazione.
Preferential lease agreement for students
There are also specific preferential contracts available for students, offering additional tax advantages.
For landlords:
The option to select 'cedolare secca' at a 10% rate.
Exemption from stamp duty and registration tax.
25% discount on IMU tax.
For students and their families:
Deduction of 19% of the rent paid (up to 2,633 euros annually) if the school is more than 100 km from the permanent address.
Parents retain the deduction right if the student is dependent.
Subletting is not allowed.
The duration of such a contract is between 6 months to 3 years.
