As of 9 October 2026, the Italian tax authority has released the fourth installment of its comprehensive analysis on business real estate leasing versus purchasing. The article examines the asset method for accounting, the deductibility of lease payments, treatment of implicit interest, separation of land value, VAT implications, and IRAP considerations. This guidance is critical for companies evaluating the most tax-efficient structure for acquiring commercial property.
Key Takeaways
- Asset Method and Deductibility: The asset method allows lessees to capitalize the leased asset and deduct depreciation, while lease payments are fully deductible for IRES and IRAP purposes, subject to specific conditions.
- Implicit Interest and Land Quota: Implicit interest in lease contracts is deductible as financial expense; land portion must be separated and is non-depreciable, affecting the tax base.
- VAT and IRAP Impact: VAT on lease payments is recoverable for taxable persons, while IRAP treatment follows the same deductibility rules as IRES, ensuring consistency across direct and indirect taxes.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement