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When Can You Opt for Cedolare Secca?
Cedolare Secca is a favorable tax regime for income earned from renting residential properties. It also applies to commercial leases signed before 2019. You can choose Cedolare Secca when registering the lease or in subsequent years.
Cedolare Secca was introduced to combat tax evasion in the rental sector and is regulated by Legislative Decree No. 23 of March 14, 2011. It replaces the standard IRPEF tax and exempts landlords from paying registration and stamp duties as well as regional and municipal IRPEF surcharges.
Key Points About Cedolare Secca:
Waiving Rent Adjustments:
Opting for Cedolare Secca means landlords forgo the right to request rent adjustments, even if stipulated in the lease. This includes changes based on the ISTAT national consumer price index for wage-earner and administrative employee families relative to the previous year.Tax Rates:
- 21% Tax Rate: For free-market leases of residential properties.
- 10% Reduced Tax Rate: For agreed-rent leases.
Exercising the Option:
The Cedolare Secca tax regime is not automatic. Landlords must explicitly opt in during the lease registration process by completing the RLI form.- If not chosen at the time of registration, standard registration rules will apply, and registration and stamp duties will be due and non-refundable.
- For contract renewals, landlords must confirm the option when notifying the renewal. This confirmation must be made within 30 days of the contract expiration or a previous renewal.
Flexibility in Timing:
The choice for Cedolare Secca can be made:- At the time of initial lease registration.
- Later, for multi-year leases, during renewals or subsequent registration periods.
This choice must be communicated both to the Revenue Agency and to the tenant.
How to Inform the Authorities:
- Notify the Revenue Agency: Submit the Form 69 to communicate your choice.
- Pay the Tax: Calculate the tax liability when filing your income tax return and pay it using the F24 form.
By carefully adhering to these steps, landlords can benefit from the simplified taxation process and fixed rates offered by Cedolare Secca.
How to Pay the Flat-rate Tax (Cedolare Secca)
Payment Process for Cedolare Secca
The advance payment, calculated based on the tax paid in the previous year, is set at 100% of the amount due. Payment must be made as follows:
Advance Payment
Single Payment:
If the amount is less than €257.52, it must be paid in full by November 30.Two Installments:
If the amount exceeds €257.52, payment is divided as follows:- First Installment: 40% of the total amount due, payable by June 30.
- Second Installment: 60% of the total amount due, payable by November 30.
Balance Payment
The balance must be paid by June 30 of the following year, or by July 31 with a 0.40% surcharge for late payment.
F24 Form Codes for Cedolare Secca
Use the following tax codes when making payments through the F24 form:
- 1840: Cedolare Secca – Advance Payment, First Installment
- 1841: Cedolare Secca – Advance Payment, Second Installment or Single Payment
- 1842: Cedolare Secca – Balance Payment
Contract Registry
The Cedolare Secca regime is optional, meaning the decision to opt for it must be communicated either when registering the contract or in subsequent years. The contract must be registered using the RLI form within 30 days of the signing date or, if earlier, from the contract’s effective date. If the Cedolare Secca option is exercised in the years following the contract’s signing, the choice must be made within 30 days of the previous year’s expiration.
Similarly, the Cedolare Secca option can be selected upon renewing the lease agreement, also within 30 days of the renewal.
The option must be communicated to the tenant via certified mail, clearly indicating the landlord’s waiver of rent increases.
