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Guides · Renting

Renting a home: the guide for landlords and tenants.

Two points of view on the same contract.

If you let a property: which contract, how much tax, how much IMU (municipal property tax). If you are looking for a home to rent: what to prepare and what it costs to move in.

Updated on . Sources: Agenzia delle Entrate (the Italian Revenue Agency), Comune di Milano (Milan City Council).

A contract between two people: the one who lets and the one who rents. landlord tenant

For landlords

Which contract should you choose?

In Milan the canone concordato (agreed rent) follows the local agreements between landlords’ and tenants’ associations (those of 2023 are in force). The bands are in euros per m² per year, by area: for the monthly rent you divide by 12, and the floor area is the cadastral one.

The updated values are on the Comune di Milano website, under «Canone concordato». The contract must be drawn up with the assistance of the associations or carry their certification.

  1. Open-market rent (4+4)You and the tenant decide the rent. Full taxes.
  2. Agreed rent (3+2)Rent within the bands of the local agreement; in return, lighter taxes.
  3. Temporary, from 1 to 18 monthsFor a temporary need stated in the contract; in Milan it follows the local agreement.
  4. University studentsAt agreed rent, under the rules of the local agreement.

Tax on the rent

How much tax does a landlord pay?

With the cedolare secca (flat-rate tax on rental income) you pay 21% of the annual rent, instead of IRPEF (personal income tax) and its regional and municipal surcharges; 10% with the agreed rent, because Milan is classed as a municipality with high housing pressure (alta tensione abitativa). The 10% also applies to a temporary contract at agreed rent.

With the cedolare secca no registration tax or stamp duty is paid on the contract, but the rent cannot be index-linked to the ISTAT inflation figures, and the choice must first be notified to the tenant by registered letter.

Without the cedolare secca you pay IRPEF on 95% of the rent (or on the cadastral income revalued by 5%, if higher): in 2026, 23% up to € 28,000 of income, 33% up to € 50,000, 43% above that. With the agreed rent the taxable amount falls by a further 30%, but not with the temporary contract. On top of this comes the registration tax: 2% of the rent each year, split half and half with the tenant; the first payment cannot be less than € 67.

Which pays better depends on your income: with the agreed rent and lower incomes, IRPEF can cost less. Do both calculations, or ask your accountant.

Cedolare secca: 21 per cent with the open-market rent, 10 per cent with the agreed rent in Milan. open-market rent 21% agreed rent 10% cedolare secca on the annual rent, Milan

IMU

How much IMU is paid in Milan in 2026?

The base is the rendita catastale (cadastral income) × 1.05 × 160. The Milan rate depends on the contract. With a cadastral income of € 1,000 (base € 168,000) the IMU ranges from about € 920 to about € 1,915 a year.

For the reductions you need a contract that complies with the local agreement and you must send the documents to the Comune.

Short lets: from 2026 the cedolare secca is 21% for a single property and 26% for the others; with more than two flats the activity is treated as a business. If you let through a platform or an intermediary, check with your accountant how this applies to your case.

  1. Open-market rent: 1.04%About € 1,747 with the cadastral income in the example.
  2. Agreed rent with a tenant who is resident: 0.73%, reduced by a quarterAbout € 920.
  3. Agreed rent without the tenant’s residence, temporary and student contracts at agreed rent: 1.04%, reduced by a quarterAbout € 1,310.
  4. Empty home: 1.14%About € 1,915.

For those looking to rent

Looking for a home to rent? What to prepare.

A landlord wants to know that the rent will be paid: many ask for your tax return. Having it ready, with the other documents, puts you ahead.

A prudent rule: rent and charges within about a third of net income.

  1. Identity document and codice fiscale (tax code)For everyone who will live in the home.
  2. Employment contract and latest payslipsOr, if you are self-employed, the documents of your business.
  3. Tax returnThe most recent one filed.
  4. Guarantees, if requestedA bank guarantee or a person who stands surety for you.

Move-in costs

What does it cost to move in?

Before you get the keys you usually pay the security deposit and the first month’s rent. Ask for everything in writing before signing.

  1. Security depositBy law it cannot exceed three months’ rent; it is returned to you at the end.
  2. Rent in advanceHow many months is stated in the contract.
  3. Half the registration taxIf the landlord does not choose the cedolare secca.
  4. Agency fee, if anyAsk before the viewing.
  5. TARI and utilitiesThe TARI, the waste collection tax, is paid by whoever lives in the home; in Milan it depends on the m² and the number of people.

The first step is a conversation

Would you like the figures for your case?

Open-market or agreed rent, cedolare secca or IRPEF: with the figures for your home, we tell you what pays.

The documents for letting All the guides

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