Transitional and student leases in Italy

Where the rules come from

Article 5(1) of Law 431/1998 refers to a ministerial decree to define the conditions for transitional leases “even of a duration shorter than the limits” of the law “to meet particular needs of the parties”. Article 5(2) adds student leases as an alternative, on the contract types approved under art. 4-bis. The detail is in the decree of 16 January 2017 (Gazzetta Ufficiale no. 62 of 15 March 2017), which sets the national criteria for the local agreements between owners’ and tenants’ organisations. Article 5(3) lets municipalities that host a university, possibly with neighbouring municipalities, promote local agreements on student rents; student associations and bodies for the right to study take part.

The transitional lease

Duration. Art. 2 of the decree: not more than eighteen months.

The temporary need. The contract is for “particular needs of the owners or the tenants”, with particular reference to those arising from work mobility and linked to study, apprenticeship and vocational training, updating and the search for employment, to be identified in the local agreement. The contract must contain a specific declaration naming the need, chosen from those in the local agreement. For contracts of more than 30 days, the need must be proved by documents attached to the contract (art. 2(4)). If the reason falls outside the local list or is hard to document, the decree has a further rule in art. 2(5) that this guide does not detail; ask the organisations that signed the local agreement.

Rent. In municipalities of more than ten thousand inhabitants the rent is set by the parties within the minimum and maximum values for the zone in the local agreement, which may move those values by up to 20% to reflect local needs. Without a local agreement, the reference values come from the ministerial decree under art. 4(3) of the law. For contracts of 30 days or less, rent and the split of service charges are left to free negotiation.

Disputes. Under art. 6(5) of the decree the parties to a transitional contract may ask the joint conciliation commission to establish whether the grounds for the transitional character still exist or have ended; the commission then puts proposals on duration and clauses. Art. 13(3) of the law separately voids any clause departing from the legal duration limits.

The student lease

Who. Municipalities with a university, a detached university course or other higher-education institution, and neighbouring municipalities, where the tenant is enrolled in a degree or post-graduate course (master’s, doctorate, specialisation) in a municipality different from the one of residence. The contract can be signed by one student, a group of students, or a body for the right to study.

Duration and renewal. From six months to three years, renewable at the first expiry unless the tenant gives notice at least one month and not more than three months before (decree, art. 3(1)). Note that the notice rule described there is the tenant’s; the text read does not set a separate notice for the landlord, so ask the local organisations how the agreement treats it.

Rent and form. Rents are set in local agreements based on the zone values, with possible increases or decreases linked to duration. The contract must be written on the approved type (Annex C of the decree). Parties may ask the respective organisations to assist them, and the agreements set how a contract made without assistance is attested.

Tax and registration

Both contracts above 30 days must be registered within 30 days (see registering a rental contract). Art. 5 of the decree extends the agreed-rent tax advantages to contracts of art. 1(3) and art. 5(2) and (3) of the law in the high-demand municipalities listed there, provided the agreed form is used in full; the Agenzia delle Entrate describes a 10% flat tax for agreed-rent contracts in the municipalities it lists (see the flat-tax guide). The Agenzia also allows the option for homes let to housing cooperatives or non-profit bodies and sublet to university students, on conditions it lists on its page. Whether a particular transitional or student contract qualifies for 10% is a question for the tax adviser or the Agenzia.

A calculation with the official 2% registration rate: on a nine-month student lease at €450 a month, the base is 9 × €450 = €4,050, and 2% is €81. Check the €67 minimum and any reduction for agreed-rent contracts on the registration page before relying on it.

Which professional to consult

Owners’ and tenants’ organisations that signed the local agreement can assist the parties and attest the contract, as art. 3(5) of the decree provides. A real estate agent can propose a suitable form; a tax adviser can check the tax. Payotte lists no individual.