'Subentro' in rental contracts: what is it and how does it work?

Original article written by condominioweb

In Italy, it’s possible to change the names of the people on the rental contract in a much more extensive and comprehensive way than exists in the UK. While in Britain an amendment to the contract, if not an entirely new contract, often has to be drawn up and signed, in Italy there is no need to rescind the old contract.

Under certain circumstances, the names of the tenant and/or the landlord can be modified in the contract. This is known as subentro. Here, we explain what exactly subentro is, when it can happen and what financial obligations come with it.

Understanding the word ‘subentro’

In the Italian dictionary, subentro is defined as the act of taking control, “entering into the place of another person, immediately succeeding or replacing them”.

In a rental contract, then, it means replacing the position that was held either by the owner or the person renting the property.

Subentro in a rental contract may happen because both parties voluntary enter into it, or it may be legally required. Let’s have a look in detail.

As a landlord

There are different cases in which the name of the landlord can be replaced in a rental agreement:

1. Sale of the property which is subject to the contract. If the landlord transfers the real estate unit in question, that is, the property currently being rented out, to a third party, a buyer who is aware of the current rental situation has the obligation to respect the rent, in accordance with Article 1602 of the Civil Code.
2. Death of the owner. The law does not expressly regulate this situation but according to the interpretation of the Supreme Court, the death of the landlord only implies a subjective modification of the contract, with the heirs taking possession of the position and obligations of the landlord.
3. Sale of a company. There is the possibility of transferring a rental contract as part of the sale of a company, the contracts being the result of the business of the company sold.

As a tenant

Replacing the tenant in the contract is also a very frequent situation that can occur in these cases:

1. If the tenant dies. In this case, the spouse (or partner in civil unions) can be replaced by the heirs, relatives or relatives who habitually cohabited with them.
2. Separation or divorce. If the judge attributes the right to continue living in the family home to the spouse who is not named in the contract.
3. Contract assignment. Change of tenant with the consent of the landlord and in accordance with the provisions of law.

In the first two cases, as can be seen, the subentro replacement of the parties to the contract happens due to major causes or important reasons which make it impossible to continue with daily life in those places.

Tax obligations related to subentro

Rentals for residential use must be registered, under penalty of being null and void, within thirty days of signing the contract, in order to pay all registration taxes.

According to the website of the Agenzia delle Entrate (the Italian tax agency), if there is a voluntary replacement in the lease either of the landlord or the tenant, a registration tax must be paid:

• 67 euro fixed rate for contracts without corrispettivo (extra consideration established beyond the initial contract);
• A tax of approximately 2% of the agreed price (with a minimum payment of 67 euro) if it is a contract with corrispettivo.

As in the case of rents, the subentro must be registered at the office where the first contract was registered within 30 days of the modification of the contract.