Early Termination and Replacement of Tenants

If you need to end your lease before its agreed expiry date, you should carefully review the clauses relating to tenant replacement (takeover) and termination.

In a single-tenant agreement (one landlord and one tenant), early termination is generally allowed only for valid, justified reasons, as specified in the contract.

In a joint tenancy (where multiple tenants are named in the same contract), all tenants are jointly and severally liable for paying the rent and any additional charges. This means that if one tenant leaves, the remaining tenants are still responsible for the full rent and related costs.
A partial termination by one tenant is usually permitted. In practice, tenants often arrange with the landlord to replace the departing tenant. It is important to check whether a takeover clause is included in the contract. If not, the landlord’s explicit consent is required.

 

To exercise the right of early termination, the tenant must notify the landlord by registered letter, giving between 1 and 6 months’ notice, depending on what is specified in the contract.

Early termination involves the payment of a fixed fee of €67.00 by the tenant, but only if the landlord applies the standard tax regime.
No fee is due if the landlord has opted for the Cedolare Secca (flat tax system) Payment must be made using the F24 Elide form (tax code 1503) or through the online services of the Agenzia Delle Entrate. Please note: in the case of partial termination, registration can only be completed in person at an office of the Agenzia delle Entrate.

 

In order to exercise the Takeover , the consent of the transferor, the transferee and the landlord is required, and that the original contract and any previous transfers are duly registered with the Internal Revenue Service.
A fixed tax of € 67.00 must always be paid for the registration of the Takeover, even if the contract is under the dry coupon system. Payment must be made using the F24 Elide form (tax code 1502) or via the online services of the Agenzia delle Entrate.

 

What happens if the contract does not include a takeover or termination clause?

If no termination clause is included, the tenant may still terminate the contract under the “statutory termination” provided for by Article 3, paragraph 6 of Law No. 431/1998, This must be clearly stated in the notice letter sent to the landlord by registered mail, with at least 6 months’ notice.. This right is subject to the existence of "serious reasons" which must be specified in the notice.

If no takeover clause is included, the lease cannot be formally transferred to a new tenant. However, it is still possible to request the landlord’s consent to arrange a replacement.