‘Cedolare secca’ for commercial premises: what’s new for 2019?

What are the rules for paying tax on rented shops in Italy in 2019? / Gtres
What are the rules for paying tax on rented shops in Italy in 2019? / Gtres
24 January 2019, Redaction

The 2019 Budget Law in Italy extended the flat rate tax scheme (known as ‘Cedolare secca’ or ‘Dry coupon’) to include commercial real estate and warehouses as of 1st January 2019. Today, we look at what the changes are in the new legislation, thanks to this useful guide prepared by Confedilizia.

2019 flat rate tax scheme for business premises

As of this year, it will also be possible to use the Italian flat rate tax scheme as an option when paying tax on shops that you rent out. The IRPEF substitute tax of 21% will be applied to the rental of the commercial properties, provided that certain requirements are met:

  • The lease agreements must be for the year 2019.
  • The Cedolare secca for commercial real estate can be applied for the entire duration of the contract.
  • The new tax regime applies to cadastral category C/1 for real estate units and any other jointly leased secondary properties.
  • The Cedolare secca for shops can be applied to buildings with a maximum surface area of 600 square meters (6,458 square feet). When calculating the area, additional outbuildings should not be considered.
  • The scheme can be used by landlords who are natural persons, while no requirement is provided for the tenants.
  • The tax rate is 21%.
  • The new tax regime cannot be used in the case of contracts entered into in 2019 if, as of 15th October 2018, "a contract is in progress that has not expired, between the same parties and for the same property, interrupted before its natural expiry".
  • The Italian Tax Agency, l’Agenzia della Entrate, has specified that, since the software for the compilation of the RLI Model is currently being updated, it is currently only possible to register new contracts by going to the local offices of the Agency, and not online.

2019 flat rate tax scheme for companies

Remember that partnerships of people, corporations, business owners and the self-employed are not eligible to pay the tax on their rented commercial properties and warehouses using the 2019 Cedolare secca tax system.

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