The Italian Supreme Court (Corte di Cassazione) with rulings no. 12076 and 12079/2025 confirmed that the flat tax regime ‘Cedolare secca’ can also apply when a rental agreement is signed with a company – provided the property is used as accommodation for an employee.
This marks a major step forward, overturning the previously restrictive interpretation of the Italian Revenue Agency and providing more certainty for private landlords and investors.
Cedolare secca is a substitute flat tax on rental income that replaces the progressive IRPEF system. It allows simplified and tax-efficient property management.
• Tax rate: 21% (or 10% for agreed rents)
• No stamp duty or registration tax
• Applicable to residential properties rented to individuals or – since 2025 – also to companies for employee housing
• Must be declared when registering the lease
With rulings 12076 and 12079/2025, the Supreme Court brings legal clarity to thousands of property owners. Companies can now rent homes for employees without penalizing landlords. This opens new opportunities for long-term, stable rentals in cities such as Bolzano, Trento, Verona, and Milan.
Long-term leases with corporate tenants are now fiscally equal to private leases. This creates new flexibility and attractive prospects for investors focusing on urban areas with high employment demand.
The rulings represent a milestone for the Italian property market. They bring legal certainty and reinforce Cedolare secca as a key instrument for efficient property investment strategies.
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