In this article you will find the answer to this question 😉
A few weeks ago I happened to respond to a question posed by a colleague in a Fb group reserved for real estate agents, where she was asking whether the rate related to the dry coupon applied to transient leases was 10 or 21 percent.
Given the discordant responses from some members of this group, I decided to write a short article where I can shed light on the issue.
Regulatory references for dry coupon in transitional contracts
As specified in Circular 8/E issued by the Internal Revenue Agency, the agency answered the question this way:
Art. 3, paragraph 2, of Legislative Decree No. 23 of March 14, 2011, provides for the coupon secca at a reduced rate exclusively for leases that, in addition to being referred to real estate units located in municipalities with a shortage of housing availability identified by Article 1, paragraph 1, letters a) and b), of Decree Law No. 551 and in the other municipalities with a high housing shortage identified by the CIPE*, are stipulated at an agreed rent on the basis of special agreements between the organizations of homeowners and tenants, referred to in Article 2, paragraph 3, of Law No. 431 of 1998 and Article 8 of the same law.
He adds:
The aforementioned Article 2, Paragraph 3, of Law No. 431 of 1998 admits that the parties may determine the duration of the contract "also in relation to the provisions of Article 5, Paragraph 1," that is, in deference to transitional housing needs other than those of university students, provided for in the subsequent Paragraph 2 of the same Article 5.
Finally:
Taking into account the literal tenor of this provision, it is believed that the reduced rate also applies to transitional contracts under Art. 5(1) of Law No. 5 431/1998 (i.e., contracts lasting from a minimum of one month to a maximum of 18 months) , provided that, as in the case envisaged, it is an agreed rental agreement relating to housing located in municipalities with housing supply shortages or those with high housing tension*.
* In Art. 2 of DM 16/01/17, it was stipulated that, a requirement to be able to enter into transitional contracts is a minimum presence of at least 10,000 inhabitants in the municipality where the agreement is to be entered into. This makes it unnecessary to be on the list of municipalities with high housing tension.
This means that it is correct to apply the 10% dry coupon in contracts of a transitory nature, as long as they are stipulated in municipalities with high housing tension ( or shortage of housing availability ) following the dictates of local territorial agreements.
Transitional contracts in the municipality of Verona
For the municipality of Verona, I point out that there is a territorial agreement that was renewed in 2017 by all unions in the area, which must be referred to when drafting the lease of a transitory nature.
If you are looking for information about transient leases, and how they are entered into for properties in the municipality of Verona, click on this article.
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