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Ongoing leases in Italy: subsequent years, extension, assignment and termination within 30 days

Registering a lease does not settle matters with the Agenzia delle entrate, the Italian Revenue Agency. Throughout the lease, each subsequent year, any extension, assignment or early termination has a 30-day deadline, a tax of its own and, in the event of delay, a penalty. What changes under the cedolare secca, what a late payment costs and how to remedy it.

A landlord who has not opted for the cedolare secca (the flat-rate tax on residential rental income) must pay registration tax not only when the lease is registered but also while it runs: for each year after the first, if the tax is paid year by year, and for every extension, assignment or early termination. The deadline is always 30 days, set by Article 17 of Presidential Decree No. 131 of 26 April 1986 (the consolidated law on registration tax). For extensions, assignments and terminations, a notification must also be filed within the same deadline with the office where the lease was registered. Tax calendars are currently flagging the deadline for registering leases that started on 1 September. The later obligations tend to go unnoticed, and a delay, while inexpensive if remedied promptly, still has a cost.

Subsequent years: payment alone is enough

For multi-year leases of urban property, the parties may pay the tax for the whole term of the lease or year by year. In the second case, the tax for each year after the first must be paid within 30 days of the end of the previous year. In the Revenue Agency’s own example, for a lease starting on 1 May 2026 the subsequent payments fall due on 31 May 2027, 31 May 2028 and so on: the Agency counts the 30 days from the first day of the new year.

The tax is 2 per cent of the annual rent, updated where the lease provides for indexation to the ISTAT consumer price index. For agreed-rent leases (canone concordato) entered into in municipalities with high housing pressure (alta tensione abitativa), the taxable base is reduced to 70 per cent of the rent (Article 8(1) of Law No. 431 of 9 December 1998). On a rent of 7,200 euros a year, the tax is 144 euros. The minimum of 67 euros applies to the first year only; the tax for subsequent years may be lower.

Payment is made with the F24 ELIDE form, tax payment code 1501, or through the Revenue Agency’s online services with a direct debit. Paying the tax for a subsequent year does not require form RLI, unless the landlord wishes to exercise or revoke the option for the cedolare secca.

Where the thirtieth day falls on a Saturday or a public holiday, the deadline moves to the next working day (Article 7(1)(h) of Decree-Law No. 70 of 13 May 2011). For a lease starting on 1 October 2025, the new year begins on 1 October 2026; the thirtieth day falls on Saturday 31 October and the payment moves to Monday 2 November 2026. Those who prefer not to rely on the postponement can pay by Friday 30 October.

Paying the tax upfront for the whole term earns a reduction equal to half the statutory interest rate multiplied by the number of years. With the statutory rate at 1.6 per cent in 2026, applicable to payments made in that year, the discount is 0.8 per cent per year: for the rent in the example and a four-year lease, the tax of 576 euros falls to approximately 557.57 euros.

Extensions

An extension, including a tacit one, must be notified, and the tax paid, within 30 days of the expiry of the lease or of the previous extension: for a 4+4 lease starting on 1 May 2026, by 31 May 2030. The tax is 2 per cent of the rent, paid for the single year or for the whole term of the extension, with a minimum of 67 euros on the payment due for the extension. For the Revenue Agency, the automatic renewal provided for by law, such as the second four-year period of a 4+4 lease or the two-year period of a 3+2 lease, is also an extension. If instead the parties change the rent or other terms at expiry, they enter into a new lease, which must be registered as such. Filing form RLI online covers both the notification and the payment; anyone paying with the F24 ELIDE form (code 1504) must still file form RLI within the same deadline.

Assignment of the lease

An assignment requires the consent of the other party: in particular, the tenant may not assign the lease without the landlord’s consent (Article 1594 of the Civil Code), except where, for non-residential property, the lease is assigned together with the business and the landlord is notified by registered letter with acknowledgement of receipt. The landlord may object on serious grounds within 30 days (Article 36 of Law No. 392 of 27 July 1978). When the landlord or the tenant assigns the lease to another person, the tax is 67 euros if the assignment is for no consideration; if consideration is agreed, the tax is 2 per cent of the agreed sum, with a minimum of 67 euros (the rate is that of the assigned lease). Payment is made with code 1502 within 30 days, and form RLI is filed. No tax is due, however, where a person takes over the lease by operation of law. This is the case of the buyer of the leased property (Articles 1599 and 1602 of the Civil Code) and of the landlord’s heirs. On the tenant’s death, the lease passes, for residential property, to the family members listed in Article 6 of Law No. 392 of 1978 and, for non-residential property, to those entitled to continue the tenant’s business (Article 37 of the same Law). In these cases, too, the Revenue Agency considers it advisable to notify the takeover.

Early termination

If the lease ends before expiry, the termination must be notified within 30 days of the date on which the lease ends, and a fixed tax of 67 euros is due (code 1503 if the F24 ELIDE form is used, always together with form RLI). A lease ends early by agreement between the parties, by the tenant’s withdrawal or by a court decision: merely handing back the keys is not enough. If the tenant withdraws for serious reasons (Article 3(6) of Law No. 431 of 1998; for non-residential property, Article 27(8) of Law No. 392 of 1978) or under a clause in the lease, the lease ends when the notice period, usually six months, expires, and the 30 days run from that date. In form RLI, it is therefore advisable to state the agreed date or the date on which the withdrawal takes effect, not the date of the move. If the parties agree on consideration for the termination, the tax is proportional instead.

Whoever paid the tax for the whole term is entitled to a refund of the portion relating to the years following the current one. Taking the example again, if the four-year lease paid upfront is terminated during its second year, the portions for the third and fourth years are recovered, amounting to approximately 278.78 euros (half the tax paid, since two of the four years remain), while the 67 euros for the termination remain due. The refund is claimed from the office by application, within the three-year time limit laid down in Article 77 of the consolidated law.

On the natural expiry of the lease, if there is no extension, nothing has to be notified and no tax is due: Article 17 requires notification only of extensions, assignments and terminations, and for the Revenue Agency termination means the end of the lease before its natural expiry. Natural expiry, however, presupposes that the lease has been brought to an end in the ways provided for by law. In 4+4 and 3+2 residential leases, at the first expiry the landlord may prevent the renewal or extension only on the grounds listed in Article 3 of Law No. 431 of 1998, notified at least six months in advance; at later expiries, notice to quit must be given with the same notice period. Otherwise, the lease continues by operation of law, and the extension must be notified, and the tax paid, even if the tenant leaves the property shortly afterwards.

Under the cedolare secca

The cedolare secca also replaces the registration tax due on subsequent years, extensions and terminations. Where there are several landlords, however, the cedolare secca applies only to those who have opted for it: on subsequent years and extensions, registration tax remains due on the share of the rent attributable to the landlords who have not opted, and on termination the 67-euro tax is due in full if even one of them has not opted. The early termination must be notified in any case. The cedolare secca does not, on the other hand, replace the tax due on the assignment of the lease: even where the option has been exercised, 67 euros, or 2 per cent of the consideration with a minimum of 67 euros, must be paid (code 1502), and form RLI must be filed within 30 days.

Extensions call for a distinction. Article 3-bis of Decree-Law No. 34 of 30 April 2019 abolished the penalty for failing to notify an extension (100 euros, reduced to 50 euros if the delay did not exceed 30 days). In addition, Article 3(3) of Legislative Decree No. 23 of 14 March 2011 rules out revocation of the option where the landlord has acted consistently with it, by paying the cedolare secca and reporting the rent in the relevant section of the tax return. The instructions for form RLI, however, still require the extension to be notified and the option to be confirmed. Filing the notification is free of charge: it is advisable to file it in every case. On an extension, or in a subsequent year, the option may also be exercised for the first time, within the deadline for paying the registration tax and after notifying the tenant by registered letter.

Who pays

Landlord and tenant are jointly and severally liable to the tax authorities for the whole tax (Article 57 of the consolidated law): if the tax is not paid, the Revenue Agency may claim it from either of them. As between the parties, registration costs are borne equally by the landlord and the tenant (Article 8 of Law No. 392 of 1978): whoever paid the whole tax may claim the other party’s half.

If the deadline has passed: penalties and voluntary correction

Late payment or non-payment of the tax due on subsequent years, extensions, assignments and terminations is subject to the penalty laid down in Article 13 of Legislative Decree No. 471 of 18 December 1997. For extensions, assignments and terminations, Article 17(1-bis) of the consolidated law refers to it expressly; for subsequent years, Resolution No. 56/E of 13 October 2025 confirms that it applies. For violations committed from 1 September 2024, the penalty is 25 per cent of the tax, reduced to 12.5 per cent if payment is made within 90 days and, for payments up to 15 days late, to one fifteenth of that reduced penalty for each day of delay.

Under the voluntary correction procedure (ravvedimento operoso, Article 13 of Legislative Decree No. 472 of 18 December 1997), the penalty is reduced further. Applying the reductions to the ordinary penalty gives the following rates:

• up to the fourteenth day of delay, approximately 0.083 per cent of the tax for each day;
• from the fifteenth to the thirtieth day, 1.25 per cent;
• from the thirty-first to the ninetieth day, approximately 1.39 per cent;
• after 90 days and within one year, 3.125 per cent;
• more than one year late, approximately 3.57 per cent.

Voluntary correction is available until a payment demand (avviso di liquidazione) or an assessment notice has been served (Article 13(1-ter) of Legislative Decree No. 472 of 1997).

Interest at the statutory rate, calculated day by day, is added to the reduced penalty. With the F24 ELIDE form, penalties and interest are paid with codes 1509 and 1510, not with codes 1507 and 1508, which are used for late first registration. For a year’s tax of 144 euros paid 20 days late, the penalty is 1.80 euros and the interest approximately 13 cents.

Different rules apply to a lease registered late. Article 69 of the consolidated law provides for a penalty of 120 per cent of the tax, with a minimum of 250 euros, reduced to 45 per cent, with a minimum of 150 euros, if the delay does not exceed 30 days; the minimum amounts apply to violations committed from 13 June 2025. In the same Resolution No. 56/E of 2025, the Revenue Agency clarified that, where the parties have opted for annual payment, the penalty is calculated on the tax for the first year and not on the tax for the whole term.

From 2027

From 1 January 2027, most of Presidential Decree No. 131 of 1986 will be replaced by the consolidated law on registration tax and other indirect taxes (Legislative Decree No. 123 of 1 August 2025). The application of the new consolidated law was postponed by one year by Article 4(5) of Decree-Law No. 200 of 31 December 2025, converted into Law No. 26 of 27 February 2026. The rules now contained in Article 17 move to Article 21 of the new consolidated law. From the same date, the penalties now provided for by Legislative Decrees Nos 471 and 472 of 1997, and the penalty in Article 69 of Presidential Decree No. 131 of 1986, will be brought together in the consolidated law on tax penalties (Legislative Decree No. 173 of 5 November 2024), which Article 4(1) of Decree-Law No. 200 of 2025 also postponed to 2027. Throughout 2026, the provisions cited in this article continue to apply.

Precautions

Keep the lease identification code assigned on registration: it is needed to complete the F24 ELIDE form and form RLI. It is advisable to record in a single calendar the start date of each year and the expiry date of the lease, since the 30 days run from those dates. Rent arrears do not end the lease: until the lease has been terminated, by agreement or by a court order such as an eviction order (convalida di sfratto), the tax on each year remains due. If the tenant stops paying, unpaid rent is governed by its own rules, set out in our article on rent arrears and eviction.

In practice

• Subsequent years without the cedolare secca: pay 2 per cent of the rent within 30 days of the end of the previous year, with the F24 ELIDE form (code 1501) or online.
• Extension: notify it and pay within 30 days of expiry; under the cedolare secca, notify it in any case, confirming the option.
• Assignment: file form RLI and pay the tax within 30 days, even under the cedolare secca.
• Early termination: file form RLI within 30 days of the date on which the lease ends and pay 67 euros, which are not due if all the landlords have opted for the cedolare secca; if the tax was paid upfront for the whole term, claim a refund for the years following the current one.
• Natural expiry without extension, with notice to quit given in time: no action required.
• In the event of delay, use voluntary correction, with codes 1509 and 1510 for penalties and interest.

Frequently asked questions

The lease expires and the tenant leaves the property: do I have to notify the Revenue Agency?

Not if the lease ends on its natural expiry because proper notice to quit was given and the lease has not been extended. If instead the lease ends before expiry, by agreement with the tenant or through the tenant’s withdrawal, it is an early termination. It must be notified within 30 days of the date on which the lease ends, which in the case of withdrawal is the end of the notice period, and the tax of 67 euros is due, unless all the landlords have opted for the cedolare secca. The mere fact that the tenant leaves the property early does not end the lease.

I forgot to pay the tax for a year: what is the risk?

The ordinary penalty is 25 per cent of the tax, but voluntary correction reduces it substantially: for example, to 1.25 per cent if you pay between the fifteenth and the thirtieth day of delay. You pay the tax (code 1501), the penalty (code 1509) and statutory interest (code 1510).

Under the cedolare secca, do I have to notify the extension?

The penalty for failing to notify was abolished in 2019, and the option is not lost if the landlord has continued to pay the cedolare secca and to report the rent in the relevant section of the tax return. The instructions for form RLI, however, still require the extension to be notified and the option to be confirmed: since it costs nothing, it is prudent to do so.

Sources

Articles 17, 57, 69 and 77 of Presidential Decree No. 131 of 26 April 1986, and Article 5 of the annexed Tariff, Part One.

Article 3(3) of Legislative Decree No. 23 of 14 March 2011; Article 3-bis of Decree-Law No. 34 of 30 April 2019.

Article 13 of Legislative Decree No. 471 of 18 December 1997; Article 13 of Legislative Decree No. 472 of 18 December 1997.

Articles 6, 8, 27, 36 and 37 of Law No. 392 of 27 July 1978; Articles 2, 3 and 8 of Law No. 431 of 9 December 1998; Articles 1594, 1599 and 1602 of the Civil Code; Article 7(1)(h) of Decree-Law No. 70 of 13 May 2011.

Legislative Decree No. 123 of 1 August 2025 (Articles 21 and 205); Legislative Decree No. 173 of 5 November 2024 (Articles 101 and 102); Article 4(1) and (5) of Decree-Law No. 200 of 31 December 2025, converted into Law No. 26 of 27 February 2026.

Ministry of Finance Circular No. 12 of 16 January 1998.

Agenzia delle entrate: Resolution No. 14/E of 24 January 2014; Circular No. 26/E of 1 June 2011; Resolution No. 56/E of 13 October 2025; instructions for form RLI; guidance pages on payment for subsequent years, extension, assignment and termination.