Dry Coupon information

Alternative tax Regime: Dry Coupon


How does it work?

The “Dry Coupon” is an optional tax regime, which is substantiated by the payment of a replacement tax of income and additional taxes (for the part deriving from the income of the property).

It is noted that for contracts which the optional tax regime has been applied to, the registration tax and the stamp duty are not to be paid but are due for registrations, resolutions and extensions of the lease agreements. Instead, the dry coupon does not replace the registration tax for the assignment of the lease.

In addition, by choosing the dry coupon system, you renounce the right to request for the entire duration of the option, the updating of the rent according to the ISTAT parameters, even if it is provided in the contract.


When to choose?

It is possible to opt for the dry coupon both at the first registration of the contract and (for multi-annual leases) in the following years. When the option is not exercised at the beginning of the lease, the registration follows the ordinary rules, so that the register and stamp taxes are payable and are no longer refundable.


Who can join the optional regime of dry coupon?

Persons who hold the right of ownership or the real right to enjoyment (beneficial for example) who do not locate the property in the exercise of business or of arts and professions.


For which properties is it possible to exercise this alternative tax regime?

The option can be exercised for real estate units belonging to the cadastral categories from A1 to A11 (excluding the A10-offices or private studios) located for housing use and for their respective appliances, located together with the house, or with separate contract and subsequent to that relating to the residential property, provided that the rental relationship is between the same contractual parties, the lease of the pertinence refers to the lease of the residential property and the existence of the pertinenziale constraint with the housing unit already located is highlighted.

In case of ownership of the property, the option must be exercised distinctly by each landlord.

The holders who do not exercise the option are required to pay the registration tax calculated on the part of the rent they charge according to the shares of ownership. The stamp duty on the lease must still be paid.

The registration fee must be paid for the entire amount established in cases where the standard sets the minimum amount of tax payable.


Which conductors can enjoy this tax regime?

The system of coupon cannot be applied to lease agreements concluded with conductors acting in the exercise of business or self-employed work.


How long does the option remain?

The replacement tax shall be calculated by applying a rate of 21% on the annual rent established by the parties. In addition, a reduced rate is foreseen for lease agreements with agreed fees relating to dwellings located:


  • In municipalities with deficiencies of housing availability (article 1, letter A and B of the DL 551/1988) including Venice and the municipalities bordering the same as well as the other municipalities of provincial capital.
  • In high-tension residential municipalities (identified by Cipe).


Effects and benefits of exercising the option of dry coupon on the landlord’s income:

The income subject to coupon:

  • Is excluded from the total income;
  • The income subject to coupon and the coupon itself cannot be relied on deductible charges and deductions respectively;
  • Income subject to coupon must be included in income for the purpose of acknowledging the interest or determination of deductions, allowances or benefits of any security related to the possession of income requirements (determination of Isee, determination of income to be considered dependent).


Source of Revenue Agency