If you already have or are considering buying an investment property to lease the new tax regime for long-term leases may be of interest to you.

The new legislation granting tax benefits on long term leases is now in force.  Landlords may benefit from reduced tax rates in property income, with the rates varying in accordance with the length of the contract.

The following tax rates apply:

·       Contracts between two and five years:The current rate of 28% will be reduced to 26% with the particularity that, for each renovation of the contract with the same length, a new reduction of 2% is applied, until the limit of 14%

·       Contracts between five and ten years:The previous tax rate of 28% is reduced to 23%, with a reduction of 5% for each renovation of the contract with the same length, until the limit of 14%

·       Contracts between ten and twenty years: a tax rate of 14% is applied

·       Contracts longer than twenty years: a tax rate of 10% is applied

On the 12^thof April 2019 the decree order n. º110/2019, which regulates these tax benefits with retroactive effects to the 1^stJanuary 2019 was published. 

Already a landlord or considering investing to expand your property portfolio? 

Find out more about the necessary conditions and documentation to benefit from these tax benefits and how we can help you simplify the process by contacting one of the team on international@edge-il.com.