THE RESIDENTIAL TENANCY PROCESS
In addition to the costs of registration of the contract which is to be split into equal parts between the Landlord and the Tenant, the Tenant is also responsible for the utilities’ costs (water, electricity, gas, waste disposal costs, etc. …), unless the parties agree otherwise as the utilities remain under the Landlord’s name and the Tenant refunds each month/year.
Since 2011 the landlord may decide whether to apply a separate tax of 21% on the entire amount paid by the tenant (or 10% for tenancies with an agreed rent) to the rents coming from the rental for residential use. The “Cedolare Secca” flat tax scheme replaces any ordinary tax scheme wherein 95% of the rents must be added to all other income and taxed at progressive IRPEF rates according to the income class.