Regular contract? Yes, thank you

Regular contract? Yes, thank you

Tax breaks and important protections for both the landlord and the rental student: here’s why the contract is beneficial to both. First days of the month: the homeowner rings the doorbell and comes by to collect the monthly duty, counted bills changing hands and goodbye to the next month. For many students (1 in 3 in Siena according to research), this is the common practice, repeated from month to month, for years; but saving on registration fees, bending to what seems to be the only possible formula, getting discounts on the monthly rent are not enough reasons to fuel the real estate black market: entering into a regular lease may be more convenient. Benefits for the student – If in possession of a regular contract, for students or of a transitory nature, with next year’s tax return it will be possible to deduct 19% of the rent paid, calculated on a maximum of 2,633 € (so the maximum deduction will be 500, 27 €).

These are the conditions for taking advantage of the tax break:

  • The contract, of course duly registered, must be for therental of a property for residential use-no colleges, boarding schools or student residences.
  • The contract must be entered into or renewed according to the law on leases 431/98: it must therefore be either a student contract (duration of 6 to 36 months, automatically renewable with locally agreed rent) or a contract of a transitory nature (duration of 1 to 18 months, with no automatic renewal and no strings attached for rent).
  • The student must attend a university (it is indifferent whether public, private or semi-private) located at least 100 km from the municipality of residence and in any case in another province.
  • The contract must be in the name of the person who will be entitled to the deduction so, even for renting a single room, it will be necessary to have a personalized contract.

That being said, you will then need to keep a copy of the contract signed by both parties, as well as all rental receipts, whether you pay by wire transfer or by cash to the landlord. In addition to the tax benefits, there is an additional advantage: the rental agreement, whether for student or transient use, remains the only concrete form of protection of the student’s rights in rental matters, which is indispensable in case of misunderstandings and disputes with the landlord.

However, the advantages of entering into a regular contract are not limited to renters: for those who rent to out-of-state students under a regular contract with an agreed rent there is the possibility of obtaining a 40.5 percent discount on the rent declared at the Irpef. In practice, this involves declaring a little less than 60 percent of the annual rent amount in the tax return, as opposed to 85 percent for a free contract (which provides a 15 percent discount). The benefits provided by the territorial agreement [.rtf] for the province of Siena also include discounts on ICI and Registration Tax.

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