Italy considers 21 percent flat tax for commercial rentals

The Italian government is considering the reintroduction of a 21 percent flat tax, known as ‘cedolare secca’, for commercial property rentals. This measure aims to support local shops and small businesses by allowing individual owners of properties classified as C/1 (shops and artisan workshops) to separate rental income from their other personal income for tax purposes.

Deputy Economy Minister Maurizio Leo has highlighted this proposal, which seeks to replicate a model tested in 2019. The goal is to prevent the closure of neighborhood businesses by providing tax relief to landlords who lease to entrepreneurs, artisans, or professionals. The final implementation will depend on upcoming budget laws and the determination of specific financial coverage and beneficiary limits.