Concerning the fees charged for the enjoyment of the property, the provisions provided for lease contracts apply
The tenant may, after a certain period, decide to purchase the property by deducting from the sale price a part of the rent already paid
Tenancy agreement with the right to purchase: what it is
The so-called rent-to-buy contract identifies a legal transaction in which the owner hands over the property to the tenant. In addition to paying the rent, the latter can, after a certain time, decide to buy the property, deducting from the price a part of the rent already paid.
The rent-to-buy contract consists of two stages:
that of granting the use of the property
that of the property’s ownership transfer from the grantor to the tenant.
However, the second stage is merely eventual: the obligation to buy or sell is not automatic. It is an option remitted to the tenant, which comes into evidence once a certain period specified in the contract has passed.
On this point, the Revenue Agency, in its answer to interpellation No. 597/2021, has clarified the taxation of the so-called rent-to-buy contract: the contract through which a party grants for the enjoyment of a specific asset, in this case, real estate, in favor of the one who enjoys it, a right to purchase to be exercised from a certain time.
In this regard, the Agency, recalling Circular No. 4/E of 2015, and responding to the petitioner’s questions, highlights that contracts, other than finance leases, which provide for the immediate granting of the enjoyment of a property, with the right for the tenant to purchase it within a specified time are legal transactions, characterized
by the enjoyment of the property for the periods preceding the exercise of the right of purchase
by the charging of a portion of the rent as consideration for the subsequent purchase and sale of the property
by the exercise of the right to purchase (or eventual non-exercise of the right) the property.
Tax implications
As far as the enjoyment of the property is concerned, the Agency notes, it is believed that it should be assimilated, for tax purposes, to the lease and, therefore, for the portion of the rent imputed to the enjoyment of the provisions provided, for both direct and indirect tax purposes, for lease contracts will apply.
More specifically, concerning the rents paid in the period before the exercise of the right to purchase by the tenant, the legal effect resulting from the transfer for the enjoyment of the property is relevant and, therefore, for tax purposes, the regulations provided for lease contracts are applicable.
However, part of the portion of the rent paid by the tenant during the enjoyment is like an advance payment of the transfer consideration, and, for tax purposes, it is assimilated to the discipline of down payments on the price of the subsequent sale of the property.
In essence, the tax treatment to be applied to the rent paid by the tenant must be diversified in view of the function (enjoyment of the property and down payment of the price) for which said sums are paid.
Facilities for the landlord
The Agency, moreover, speaking from the point of view of the owner of the property, specified that for lessors who do not act under a business regime, the rent arising from the lease for residential purposes of real estate for residential use and related appurtenances may be subject, at the option of the lessor, to the “dry coupon” regime.
The option entails subjecting the rent to a tax that replaces Irpef and related surcharges, as well as registration and stamp duties on the lease.
