Single taxation if the tenant is an entrepreneur
In ist judgement no. 12395 of 7 May 2024, the Supreme Court ruled that the flat taxation of rents from the rental of a property for residential purposes (the so-called ‘cedolare secca’) is also applicable if the tenant is a company or a business, as this option is not banned by Art. 3 para. 6 of Legislative Decree no 23 of 2011.
In the case analysed, a private individual had rented a flat to an airline, which was intended for the legal representative of the same tenant.
The Court upheld the taxpayer’s appeal as follows: ‘As regards rental income, the landlord may opt for the “cedolare secca” even if the tenant concludes the rent for residential purposes in the exercise of his professional activity, since the exclusion referred to in Article 3(6) of Legislative Decree no. 23 of 2011 refers exclusively to the rental of real estate units for residential purposes carried out by the landlord in the exercise of a commercial or professional activity’.