The regulated rental contract

“Contratto di locazione a canone concordato” or “3+2”

The “contratto di locazione a canone concordato” is a so-called “regulated contract,” since here not only the duration (decorrenza) but also minimum and maximum rent values are set at the municipal level.

Because these contracts are a form of tenant protection (locatario/conduttore), they are strongly promoted through tax benefits for the landlord (locatore). For example, income tax (imposta sul reddito) on rental income is reduced by up to 30%, and the fees for contract registration are reduced by two-thirds.

Regulated contracts have a term of three years with automatic renewal (tacito rinnovo) for another two years. After a total of five years, the lease can, as with free contracts, be terminated by either party without giving reasons, provided six months’ notice is given. Termination (disdetta) must be sent by registered mail (raccomandata); otherwise, the lease is automatically renewed for another five years. The termination can be contested within 60 days of receiving the registered notice; otherwise, it is considered accepted.

The regulated lease may also be terminated after the first three years. This again requires registered notice at least six months before the end of the three years, with valid reasons. The landlord must then use the property for the purpose stated in the termination within 12 months; otherwise, the evicted tenant has the right to claim damages (risarcimento del danno) or to reinstate the lease under the old terms.

During the lease term, the rent is automatically increased annually according to the index set by the Italian Statistics Office (ISTAT). For regulated contracts, this index is applied at 75% as the basis for rent increases. Any further changes to the contract terms may only be agreed upon at the beginning of a new contract term (i.e. after five years) and must be communicated by registered mail.