Italy Tax Agency Clarifies Application of Flat-Rate Tax Regime for Commercial Property Leases

The Italian Revenue Agency Feb. 11 issued Letter No. 34/2026, clarifying the application of the flat-rate tax regime for commercial property leases. The taxpayer, an owner of a commercial property leased since 2013, validly opted for the flat-rate tax regime when the contract naturally expired in 2019. The taxpayer sought clarification on whether the option for the regime could be exercised again for a further lease extension in 2025 under the transitional rules of Law No. 145/2018. Upon review, the Tax Agency clarified that: 1) the flat-rate tax regime was strictly transitional and applicable solely to contracts signed or naturally ...