ISTAT Variation Table

Here is the latest update of the ISTAT Variation table.

ISTAT Variations for Leases

Every month ISTAT (National Institute of Statistics) publishes the revaluation index for leases. This data is used, among other things, by landlords to increase rent during the contractual period.

The variations are updated and adjusted based on the consumer price index and inflation rates.

What is Rent (Lease Consideration)

Among the various roles carried out by ISTAT, in addition to the population census and sampling surveys on consumption and family lifestyles, there is the monitoring of rent levels. This data has a significant impact on the population’s finances, as a very high percentage of people in Italy live in rented accommodation.

The rent is updated and adjusted according to the consumer price index and the inflation rate, which modifies the monthly rent payment. Once this calculation is performed, the resulting amount is added to the monthly rent paid by the tenant. Typically, the rent adjustment is calculated at 75% of the ISTAT revaluation, but a percentage equal to 100% is also applicable. However, it is always advisable for a landlord to ensure that the ISTAT calculation percentage is explicitly stated in the contract.

What happens if the variation is negative?

When the variation in the consumer price index is negative, it does not affect rent amounts. This means that there will be no downward variations or reductions in the rent.

Commercial vs. Residential Lease Agreements: The Differences

Commercial and residential lease agreements are regulated by different laws. In fact, commercial use contracts are governed by Law 392/78 (the “Fair Rent” law), of which Article 32 provides for an annual rent update not exceeding 75% of the ISTAT index. An increase in rent exceeding this provision must be justified only in relation to specific contractual clauses, such as when extraordinary maintenance work becomes necessary at the owner’s expense.

The only exception was introduced by Art. 41, paragraph 16, Decree Law 207/2008, which establishes free adjustment for non-residential lease contracts with a duration longer than the minimum, i.e., at least 7 years + 6. For all other commercial contracts, the 100% update is not valid.

Residential lease contracts, on the other hand, are regulated by the Reform Law (431/98), which replaced Article 24 of the Fair Rent Law 392/78. This law allows for increases of up to 100% of the ISTAT variation via an automatic mechanism. Nevertheless, for any increase exceeding 100% of the ISTAT variation, it is always appropriate to provide a specific justifying clause.

In the case of the “Cedolare Secca” (Flat Rate Tax) regime, the landlord cannot request the ISTAT update. For these contracts, the rent will remain the same for the entire contractual period, at least until the landlord decides to change the tax regime.