This article was translated automatically from Italian.
Canone concordato in Milan: an opportunity for landlords
Canone concordato in Milan:
with the new tables it becomes an opportunity for landlords
Today the canone concordato (agreed rent) regime in Milan is no longer a "second-class" option: thanks to the new tables, it can allow landlords to let at rents equal to or higher than those of free-market contracts, while also enjoying significant tax advantages. Let's see why it is worthwhile, and how it applies.
The advantages for the landlord
1. Competitive rents
The new tables updated in 2023 set minimum and maximum values which, in many areas of the city, are in line with or even higher than free-market rents.
This means there is no need to reduce the rent: it may turn out equivalent or higher, depending on the area, the type and the features of the property.
2. Tax advantages
Flat-rate tax (cedolare secca) at 10% instead of the usual 21%, when the canone concordato contract is used.
Exemptions from registration tax and stamp duty, which reduce the fixed costs of the contract.
Lower IMU, when the Municipality grants a reduction for properties let at the canone concordato.
3. Greater certainty and stability
With contracts such as the 3+2, transitional or student contracts, the landlord has clear rules on duration, renewals and exits. This reduces the risk of finding the property empty or with defaulting tenants.
4. Net income often higher
Even if the canone concordato may initially seem lower than the free-market rent, once the lower taxes, the exemptions and the continuity of the contract are taken into account, the net gain can become equal or better.
How it works: the essential criteria
To take advantage of these benefits, here is how the canone concordato is calculated, which parameters are considered, and what is needed to apply it correctly.
Updated tables
There are territorial tables that define a "minimum" and a "maximum" for the area, based on the type of property (two-room flat, three-room flat, etc.), the condition of the property (maintenance, features) and the accessories (balconies, lift, balconies, garage, appurtenances, energy class, etc.).
Recalculated floor area
The "raw" cadastral floor area is not the only figure used. There are coefficients that recalculate the square metres taking into account: balconies, appurtenances, garage, etc. These components are worth less than the internal sq m but they have an effect.
Area coefficient
Depending on the area (central, semi-central, suburbs) and the type of district, the level of services and the features of the property, coefficients are applied that increase or decrease the rent within the minimum-maximum limits.
Type of contract
3+2, transitional and student contracts: these types are permitted for the canone concordato. The landlord must check that the contract is drawn up in accordance with the rules laid down for this regime.
Checking the features
Features such as lift, balconies, air conditioning, energy class, appurtenances… all of this has an effect. If the property is well kept and well equipped, the rent can be pushed towards the upper band.
Correct tax compliance
To benefit from the reduced rates and exemptions, the landlord must register the contract correctly as "concordato", make sure that the limits set by the tables are respected, choose the flat-rate tax (cedolare secca) if applicable, etc.
Expertise makes the difference
Calculating the rent requires care: area, cadastral floor area, appurtenances, condition of the property, features and energy class must all be assessed precisely. Approximate management can mean losing the tax benefits.
At Immobiliare Pavè we know the Milan agreements inside out and guide you at every stage: from checking the parameters to signing the contract.
In this way we turn your property into a secure, advantageous and lasting income.
Contact us: your next canone concordato contract could be the one that truly increases the profitability of your property.
Alessandro Langella
Founder of Pavé, Milan
He knows Milan through years of hands-on market experience, properties visited and neighbourhoods watched as they changed.
