Companies in Italy can use the Flexible Real Estate Management (RE-FX) solution for Italy to calculate and store the Italian registration tax (Imposta di registro – IRE), according to Italian requirements.

Registration tax is a tax paid to the Italian authorities on the creation, renewal, or notice of a real estate contract, as specified by Italian law. This tax has to be paid within 30 days of the rental agreement being made/renewed/noticed. Either of the contractual partners can pay the registration tax, and the amount can be shared between them in any percentage. Usually, the landlord pays the full amount to the authorities and subsequently receives 50% from the tenant.

According to Italian regulations, all real estate objects must be classified according to rental object codes (in Italian, it is known as oggetto della locazione) defined by the tax authorities, which control the amount of registration tax due.

Typically, the annual registration tax is a percentage of the tax base amount. The tax base amount is equal to the rental amount specified in the contract.

Italian tax authorities define a certain percentage of deduction for certain rental object codes. You can pay the reduced registration tax amount if you fulfill all of the following requirements at the same time:

The system calculates the deduction amount as follows:

All rental object codes are eligible for a payment deduction except for Non-Urban Properties (01) and Other Types of Properties (03).