Extension of the rental bonus for tourist facilities

| Tax

The rental bonus, introduced with the “Decreto Rilancio” (art. 28 of Law Decree no. 34/2020), provides for the recognition of a tax credit in relation to rents on non-residential properties used in the exercise of business, art, and profession if in 2019 the sum of revenues and fees is not more than Euro 5 million.  This revenue limit does not apply to hotels and agritourism hotels.

Originally, the tax credit was equal to:

– 60% of the monthly rental (for the months of March, April, May, or June for tourist accommodation facilities with only seasonal activity);

– 30% of the rents related to company rental contracts, including property for non-residential use.

Art. 77 of the so-called “Decreto Agosto” (Legislative Decree no. 104/2020) had already made some changes to the rental bonus:

– the possibility of using the credit also for the month of June 2020 (July 2020 for tourist accommodation with seasonal activity);

– the extension of the benefit to spa facilities for which, as for hotels and agritourism hotels, the revenue limit does not apply (5 million).

Focusing on tourist accommodation activities, the changes made during the conversion of the “Decreto Agosto” outline a more advantageous Tax credit rental compared to other sectors because of:

– the temporal extension of the bonus: until 31st December 2020 for tourist accommodation businesses;

– the increase to 50% (from 30%) of the tax credit on business rental for tourist accommodation facilities, with the specification that, “if two separate contracts are stipulated in relation to the same accommodation facility, one relating to the rental of the property and one relating to the rental of the business, the tax credit is due for both contracts”.

Now for tourist businesses, to get the bonus, it is not necessary that the business rental contracts provide for the use of at least one property.

The access to the tax credit also for companies in the receptive tourism sector remains, however, subject to two necessary conditions: that the fee was paid during 2020 or even in advance during 2019, and that there has been a decrease in revenues in the month of 2020 compared to the corresponding month of 2019 of at least 50% (this condition is excluded only for those who started the business after 1 January 2019 and for those who operate in communes for which a state of emergency has been declared).

Carmen Catini