The Italian tax landscape is poised for significant changes, particularly concerning short-term rentals. The upcoming 2026 Budget Law introduces key amendments that will reshape the taxation of rental income for property owners. This article examines the essential components of the new tax
regime and its implications for landlords.
As this regulatory environment evolves, property owners must understand the alterations in tax rates and definitions of rental activities. These changes will impact not only how rentals are taxed but also how rental activities are classified as entrepreneurial.
Changes in tax rates for rental properties
A crucial aspect of the new law is the adjustment of the tax rates applicable to short-term
rentals. For individuals renting out their first property, the tax rate remains steady at 21%. This rate applies uniformly, whether the property is rented privately or through an intermediary. For those using online platforms, such as Airbnb, these companies will serve as a withholding agent and will automatically deduct the 21% tax from the rental income.
Revised rates for multiple properties
However, starting from the second rental property onward,
the tax structure shifts. A flat rate of 26% will apply to all subsequent properties, regardless of the rental method. Additionally, landlords managing three or more properties must register for a VAT number, as they will now be classified as operating a business. This change is particularly significant for those looking to expand their rental operations.
The implications of the flat tax regime
The flat tax, known as cedolare secca, simplifies the tax process by replacing the standard income tax (IRPEF) for short-term rentals. This option is particularly beneficial for occasional landlords, as it removes the need for VAT registration for up to three rental units. The legislation applies to rental agreements signed after June 1, 2017 and is relevant only for properties designated for tourist rentals, excluding vacation homes or bed and breakfasts.
Payment deadlines and methods
Regarding the settlement of the cedolare secca, property owners have two payment options. If the tax owed is less than €257.52, the payment deadline is set for November 30. For amounts exceeding this threshold, payments can be divided into two installments: the first payment, covering 40% of the total tax, is due by June 30, while the remaining 60% must be settled by November 30. However, those engaged in activities recognized by the ISA can enjoy more flexible payment terms, allowing them to divide the total amount into two equal parts.
Impact of online platforms on tax responsibilities
Effective from 2026, platforms like Airbnb will take on the role of tax withholding agents. This means they will be responsible for collecting and remitting the cedolare secca on behalf of rental hosts. This adjustment follows a resolution of a tax dispute with the Revenue Agency, which resulted in significant financial penalties. Property owners must inform their choice to adhere to this payment method by January 14, 2026.
Preparing for tax declarations
Filing the income tax return requires meticulous attention. When completing the 730 form, landlords must accurately indicate their properties: for the first property with a tax rate of 21%, the code 2 should be used. For a second property subject to the 26% rate, code 3 is required. Following these guidelines is essential to avoid tax complications.
Strategizing under the new regulations
With the recent updates to the short-term rental tax laws, property owners must engage in strategic planning. Staying informed about changing tax rates and deadlines is vital for effective property management. For newcomers in the short-term rental market, consulting with a tax expert is highly recommended to develop the most beneficial strategy moving forward.