Starting 1 January the Italian rental sector will operate under a fresh set of fiscal and administrative rules. The government’s budget plan introduces four distinct cedolare secca brackets for long-term leases, while a compulsory Codice Identificativo Nazionale (CIN) for tourist accommodations takes effect from 2 January 2025. At the same time, the European Union’s new housing strategy adds another layer of regulation aimed at limiting the conversion of residential units into short-term holiday lets.
Reduced tax rates make long-term leasing more attractive
The revised schedule assigns a 1 % rate to newly signed, rent-controlled contracts where the tenant is under 35 years old. A broader 5 % applies to all other new rent-controlled agreements, while contracts already benefiting from a 10 % rate retain that level. Unregulated market leases continue to be taxed at 21 %. For short-term rentals the flat rates stay at 21 % for the first property and 26 % for the second, with a mandatory VAT registration from the third unit onward.
A simple illustration using an annual rent of 12,000 € shows the impact. Under the previous 10 % bracket the tax would be 1,200 €. The new 5 % rate reduces it to 600 €, and the ultra-low 1 % brings it down to just 120 €. Consequently, a landlord who signs a new rent-controlled contract with a tenant under 35 could save up to 1,080 € per year. The benefit applies only to contracts initiated from 2027 onward; existing agreements cannot be transferred.
National Identification Code becomes compulsory for short-term rentals
From 2 January 2025 every property offered for tourist stays must obtain a Codice Identificativo Nazionale. The code serves as a transparency tool, linking each accommodation to its urban-planning and safety compliance dossier. Authorities may withdraw the CIN and halt rental activity if the building fails to meet the required standards. Administrative fines are imposed on operators who continue to rent without a valid code.
Judicial precedent reinforces this approach. On 31 August 2026, the Administrative Court of Campania ruled that a landlord, although in possession of CUSR codes, could not continue short-term rentals in units that were illegally built—lacking proper titles, adequate surface areas, and urban licences. The court affirmed the municipality’s right to verify hygiene, safety and planning criteria and to revoke codes when violations emerge, underscoring that mere notification of activity does not guarantee legitimacy.
European housing plan adds pressure on short-term rentals
The EU Commission’s European housing plan is built around four pillars: expanding housing stock, mobilising public-private investment, structural market reforms and protecting vulnerable households. One key measure targets cities with high residential demand, proposing stricter rules for short-term rentals to curb the conversion of homes into tourist accommodations.
To finance the agenda, a Europe-wide platform—partly managed by the European Investment Bank—will channel funds into social-housing projects and affordable-price dwellings. Simultaneously, building-permit procedures are set to be streamlined through digitalisation and the promotion of modular construction, aiming to lower construction costs and speed up delivery of new units. These actions are expected to temper rent growth, making both long-term and short-term rentals more sustainable.
In sum, the convergence of lower tax rates for rent-controlled leases, the obligatory CIN for tourist properties, and the EU’s housing reforms creates a complex environment. Landlords must weigh the fiscal advantage of long-term contracts—especially with tenants under 35—against the administrative burden and potential sanctions associated with short-term rentals. Tenants, meanwhile, may find rent-controlled offers increasingly competitive as the tax gap widens.
