Italy Rental Yield Calculator

There is no single benchmark: a good net yield depends on the property, the city, and what else your capital could earn. A common reference point is the yield on Italian government bonds (see the BTP yield calculator): if a rental nets meaningfully less than a BTP after tax, the property is compensating you for illiquidity, management effort, and price risk rather than pure income. Net residential yields in Italian cities have often sat in the low single digits once vacancy, maintenance, IMU, and tax are subtracted from a headline gross figure. This calculator gives you the number for your own property; deciding whether that number is good enough for you is a personal call this page does not make.

It depends mainly on your marginal IRPEF rate and the addizionali you pay. Cedolare secca charges a flat 21% (10% on canone concordato) on the collected rent and nothing else, while IRPEF ordinaria taxes only 95% of the rent (66.5% for canone concordato) at your marginal rate plus addizionali, then adds a registration tax share on top. At a high marginal rate, cedolare's flat rate usually wins by a wide margin. At a low marginal rate, particularly near or inside the first 23% bracket, or if you carry detrazioni or oneri deducibili that cedolare cannot use, IRPEF ordinaria can come out ahead. The calculator always computes both and highlights whichever nets more for your actual numbers, rather than assuming cedolare always wins.

Two things, mainly. Choosing cedolare secca means renouncing ISTAT rent indexation for as long as the option stays in force, so the rent stays fixed in nominal terms while inflation erodes its real value over a long lease. Cedolare is also a substitute tax outside the ordinary IRPEF calculation, so personal tax credits and deductions that would otherwise reduce your IRPEF bill, detrazioni for dependents, mortgage interest, and similar items, cannot be used against it. If those credits are large relative to your rental income, IRPEF ordinaria may be the better fit even at a rate that looks worse on paper.

Canone concordato (3+2) is a lease type agreed under the territorial agreements set up by L. 431/1998, generally available in comuni ad alta tensione abitativa (high-tension housing municipalities, mostly larger cities) and in some other qualifying cases such as student or transitory contracts. In exchange for pegging the rent to a locally agreed range instead of a free-market figure, the landlord gets a lower 10% cedolare rate and an extra 30% IRPEF abatement on top of the standard 95% forfait. This calculator assumes your contract qualifies once you select canone concordato; check your comune's territorial agreement and current Agenzia delle Entrate guidance before relying on the lower rate for a real lease.

IMU rates are set comune by comune, within limits fixed by national law, and change from one municipal budget to the next, so there is no single national rate to compute from. The most reliable source for your actual bill is your comune's published aliquota or your last F24 payment. One thing worth knowing: canone concordato lets pay IMU reduced to 75% of the ordinary amount under L. 160/2019, so if that reduction applies to your case, your concordato IMU bill should already reflect it before you enter it here.

Short lets (affitti brevi, contracts under 30 days) follow a different and frequently revised cedolare regime: recent budget laws have moved from a flat rate to one that varies by how many units a landlord lets, with a business presumption from the third unit. That churn is exactly why this calculator excludes short lets rather than modeling a rule that could be out of date within a year; it covers long-term residential leases only, 4+4 free-market and 3+2 canone concordato. Beyond that, the model is a current-year snapshot: it does not project rent growth, property appreciation, or capital gains and sale costs, it does not account for mortgage financing so the yield shown is unlevered, it applies the registration tax floor every year rather than only on the first annuity, and it taxes 95% of collected rent unconditionally rather than checking whether the rarer rendita catastale basis would be higher, as the letter of the law requires.