You are a property owner and you have decided to end your lease with your tenant. In this case, it is important to know that the law provides for the obligation to communicate the termination of the lease to the Revenue Agency. In this article, we’ll explain how to comply with this obligation, what happens if you don’t and what are the other tax obligations related to
the termination of the lease.
Table of Contents:
What does the law on the notice of termination of the lease agreement provide
The law requires that the owner of the property or the landlord must notify the Revenue Agency of the termination of the lease within 30 days from the date of termination of the contract itself. The communication must be made using the RLI (Real Estate Rental Income) model and must contain information relating to the property, the identity of the tenant and the owner, as well as the methods of paying the rent. It is possible to make the communication electronically through the Revenue Agency website or through an authorized intermediary, or by delivering the RLI model directly to the offices
of the Revenue Agency.
When is it necessary to communicate the termination of the lease to the Revenue Agency
The notice of termination of the lease to the Revenue Agency is mandatory in all cases in which the lease has been registered. Furthermore, even if the contract has not been registered, it is still necessary to make the communication if the property is used for residential use. It is important to remember that the communication must be made within 30 days from the date of termination of the contract, under penalty of the application of administrative sanctions. In the event of early termination of the contract, the communication must be made within 30 days from the actual termination date, regardless of the expiry
of the contract itself.
How to report the termination of the lease to the Revenue Agency
The notice of termination of the lease agreement to the Revenue Agency can be made in different ways. The easiest and fastest method is the electronic one, using the Revenue Agency website. Alternatively, it is possible to deliver the RLI model directly to the offices of the Revenue Agency or through an authorized intermediary. The RLI form must be filled in carefully, indicating all the information requested, such as the details of the property, the landlord and the tenant, as well as the methods of paying the rent. It is important to verify that all the data entered are correct and complete, in order to avoid any administrative
sanctions.
What happens if the termination of the lease is not notified to the Revenue Agency
If the Revenue Agency is not notified of the termination of the lease agreement, the owner of the property or the landlord risks incurring administrative sanctions. The penalties may vary depending on the duration of the delay in communication and the type of property being rented. In particular, penalties may be imposed for each real estate unit being leased, and can reach even very high figures. In addition, it is possible that the lack of communication may prevent the enjoyment of any tax breaks related to the
rental of the property.
Other tax obligations related to the termination of the lease
In addition to the obligation to notify the termination of the lease to the Revenue Agency, there are other tax obligations related to the termination itself. In particular, the owner of the property or the landlord must declare any rent not yet received, as well as to pay registration tax on deposits and security deposits. In addition, if the property being rented has been subject to renovations or extraordinary maintenance, it is necessary to verify if the subsidized tax regime has been applied for interventions of this type, and if not, to provide for the regularisation
.
In conclusion, the notice of termination of the lease to the Revenue Agency represents a fundamental tax obligation for the owner of the property or the landlord. Neglecting this compliance can result in even very heavy administrative penalties. It is therefore important to communicate in a timely and precise manner, in order to avoid any problems with the tax administration
.
