Lease contract at a preferential rate 3+2: how it helps to save

Thanks to the contract for rent at a preferential rate, owners save on taxes and tenants save on rent.

Rental rates for housing in Italy have increased significantly in recent years, creating a paradoxical situation: many properties remain empty, while young families and vulnerable groups find it increasingly difficult to find decent housing. In this context, renting under preferential conditions becomes a solution that is beneficial for both owners and tenants.

What is a preferential rate lease?

When housing is empty and market rent becomes unaffordable, especially for socially vulnerable groups, rent at a preferential rate comes to the rescue. This is a special form of rent in which the rent is lower than the market rate, which helps to provide affordable housing.

This rental format is established on the basis of territorial agreements concluded between representatives of landlords and tenants. This contributes to stable rental housing, and for owners - reduces the risk of idle property.

What does "preferential rate lease" mean?

According to Article 2, paragraph 3 of Law No. 431/1998, it is permissible to conclude lease contracts at an agreed rate (also called preferential rates), which are governed by conditions determined at local level through formal agreements between the representatives of the parties.

The amount of rent is calculated in accordance with these territorial agreements. The minimum term of such an agreement is three years, with the possibility of extension for another two years (formula 3+2), as specified in paragraph 5 of the same article of the law.

Tax benefits for owners

Why do owners agree to lower rent? The legislator has provided a number of tax benefits:

• When filing a Form 730 tax return, the taxable rental income will be 66.5% of the actual amount (instead of 85%) - unless cedolare secca is chosen;

• the tax on registration of the contract has been reduced to 1.4% of the rental amount (instead of the usual 2%) and is divided equally between the owner and the tenant;

• when choosing the cedolare secca regime, a reduced tax rate of only 10% is applied;

• In some cases, a reduced IMU tax rate is allowed: instead of the standard 7.6–10.6‰, a rate of 4‰ can be applied for properties rented out at a preferential rate.

Benefits for tenants

Renters also receive tax deductions if the rented apartment is their primary residence:

• for incomes up to 15,493.71 euros per year, the deduction is 495.80 euros;

• for income from 15,493.71 to 30,987.41 euros, the deduction will be 247.90 euros;

• If the tenant is between 20 and 30 years old, his income is less than 15,492.71 euros, and the home is used as the main one, during the first three years the deduction increases to 991.60 euros per year.

What is an attestazione and when is it needed?

If a contract at a preferential rate is concluded without the participation of professional organizations (for example, trade unions), a special confirmation ( attestazione ) from one of these organizations is required. This document certifies that the contract complies with the terms of the territorial agreement. It is necessary for:

• application of preferential taxation (for example, cedolare secca at a rate of 10%);

• Obtaining tax deductions under a lease agreement by filing Form 730.

Thus, the parties can enter into a 3+2 lease agreement:

• or with the support of specialized organizations;

• or independently, but with subsequent receipt of an attestazione .

Preferential lease agreement for students

There are also special preferential contracts for students, which provide additional tax breaks.

For owners:

• possibility to choose cedolare secca at a rate of 10%;

• exemption from stamp duty and registration tax;

• 25% discount on IMU tax.

For students and their families:

• deduction of 19% of the rent paid (maximum 2,633 euros per year) if the educational institution is located more than 100 km from the place of permanent registration;

• the right to a deduction is retained by parents if the student is dependent on them;

• Subletting is prohibited.

The duration of such a contract is from 6 months to 3 years.