Rental and Leasing

The leasing or letting of real estate in Italy – whether as a holiday property, residential unit, or commercial space – is subject to specific civil and tax law requirements. Legally sound contract drafting is therefore essential for both landlords and tenants (or lessors and lessees) in order to avoid liability risks, safeguard investments, and reliably achieve economic objectives.

Key aspects include clear provisions on contract duration, rent or lease payments, ancillary costs, maintenance obligations, and termination modalities. In addition, tax considerations – depending on the type of use and the legal status of the parties – can have a significant impact on the overall economic outcome.

Careful legal and tax structuring provides planning certainty, minimizes liability risks, and ensures that investments are sustainably protected.

In Germany, too, residential and commercial leases are governed by comprehensive mandatory rules, particularly regarding termination protection, rent increases, and the settlement of service charges.

These circumstances must be taken into account to ensure consistent and legally secure contractual arrangements in cross-border contexts.

Types of contracts and legal framework

Italian tenancy and lease law distinguishes between several contract types, each governed by its own statutory framework. Residential lease agreements (locazione ad uso abitativo) are subject to specific rules regarding minimum duration, termination rights, rent adjustment, and maintenance obligations. By contrast, commercial leases (locazione ad uso commerciale) – covering offices, retail premises, or hospitality venues – allow for broader contractual flexibility, granting the parties a greater degree of autonomy in shaping their arrangements. A particular category is represented by business lease agreements (contratti di affitto di azienda), commonly used in the agricultural and tourism sectors. These contracts extend beyond the real estate itself to include organizational and operational structures, thereby requiring careful drafting to safeguard both property and business interests.

In Germany, tenancy law likewise differentiates between residential leases (Wohnraummietverträge), commercial leases (Gewerberaummietverträge), and leasehold agreements (Pachtverträge). Residential leases are subject to extensive statutory protection of tenants, particularly regarding rent control, termination, and maintenance duties. Commercial leases, by contrast, are characterized by broader contractual freedom, though certain protective norms still apply. Leasehold agreements (Pacht) typically cover not only the property itself but also the right to exploit its economic potential – for example in agriculture or gastronomy – and are thus closer in function to the Italian affitto di azienda.

In both jurisdictions, each contract type entails specific legal requirements that must be taken into account, particularly regarding duration, termination mechanisms, obligations for repair and maintenance, and potential reinstatement duties at the end of the lease. Careful structuring is therefore indispensable to minimize risks and to provide a reliable and legally secure contractual foundation.

Commercial leasing and tenancy

In the field of commercial real estate, contractual freedom is significantly broader than in the residential sector. This enhanced flexibility makes the careful drafting of agreements all the more essential to ensure that the parties’ interests are legally safeguarded. Commercial leases for office, retail, or hospitality premises, as well as leasehold agreements in the hotel and tourism sector, offer a wide range of structuring options that must be precisely tailored to the parties’ needs.

Particular importance attaches to provisions on alterations and permitted use, as well as on liability, warranties, and reinstatement obligations. Clearly defined contractual frameworks not only prevent disputes but also mitigate economic risks, thereby providing a reliable basis for long-term business planning.

The same applies to commercial leases in Germany, where contractual freedom is likewise extensive but framed by statutory provisions such as those governing notice periods, defect liability, and the treatment of structural alterations. Careful alignment of the parties’ interests with these regulatory requirements ensures consistent and legally secure arrangements in a cross-border context.

Tax aspects of leasing and letting

ncome from leasing or letting real estate is generally subject to income tax, regardless of whether the property is located in Italy or Germany. The exact treatment depends on the type of contract, the use of the property, and the status of the landlord, and may involve further levies such as property taxes or, in certain cases, VAT or trade tax. To ensure compliance while making use of possible structuring opportunities, it is advisable to seek early coordination with experienced tax advisors, particularly in cross-border constellations

Short-term rental of holiday properties in Italy and Germany

The short-term rental of holiday homes or apartments is subject to strict legal requirements in both Italy and Germany, though the regulatory frameworks differ considerably.

In Italy, regular rental to holiday guests or advertising via digital platforms requires prior registration with the competent municipality. Owners receive a Codice Identificativo Regionale (CIR) or, in some regions, a Codice Identificativo Nazionale (CIN), which must be displayed in all marketing materials. Violations may result in substantial fines. In addition, landlords must comply with reporting obligations to the police (alloggiati web), as well as with applicable safety and hygiene standards. Rental income is subject to Italian income tax; for foreign owners, additional tax obligations in their home jurisdiction may apply. Depending on the scale of the activity, VAT liability may also arise.

In Germany, short-term rentals are regulated primarily at the municipal level. Many cities, including Berlin, Munich, and Hamburg, restrict the use of residential property for holiday rentals through laws, often requiring special permits. Breaches can lead to significant fines. Public law obligations extend to local registration duties, compliance with building and fire safety requirements, and, in some cases, statistical reporting. Rental income is generally subject to German income tax and, depending on the scope, may be classified as a commercial activity, triggering trade tax and VAT.

In both jurisdictions, clear contractual arrangements remain essential to define the rights and obligations of the parties and to minimize liability risks. Many non-resident owners choose to delegate operational management to professional service providers. In such cases, carefully drafted management agreements ensure that responsibilities regarding guest services, tax declarations, maintenance, and communication with authorities are properly allocated.

I provide comprehensive advice on these legal, tax, and organizational aspects, represent clients in dealings with the authorities, and design tailored contractual solutions that reflect both local specificities and the needs of international property owners.