Cedolare Secca (Flat-Rate Rent Tax)

An optional flat tax regime for individuals renting out residential property in Italy. If opted, rental income is taxed at a fixed rate (21% for standard contracts, or 10% for contratti concordati in eligible cities) in lieu of the normal progressive income tax and certain local taxes . With cedolare secca, the landlord also does not pay the annual registration tax or stamp duty on the lease. Conditions: the property must be for residential use (category A, not luxury A/1-A/9), and the landlord an individual (not company). The option is elected when registering the lease and applies year by year. It simplifies taxation of rent, especially beneficial for non-resident owners with no other Italian income, as they can pay the flat 21% on gross rent instead of higher marginal rates.