Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Italy tax professional before filing.
Italy · Short-term rental taxes
Short-Term Rental Taxes in Italy
STR income from stays of 30 nights or fewer is subject to the flat-rate cedolare secca withholding tax, collected and remitted by platforms on behalf of non-professional hosts.
The 30-Second Answer
- Cedolare secca is Italy's flat-rate substitute tax on short-term rental income (stays ≤ 30 nights): 21% on your first rental unit, 26% on any second and further units.
- Platforms like Airbnb and Booking.com are legally required to withhold 21% at source and remit it to the Agenzia delle Entrate monthly; hosts with multiple units must pay any extra 5% via their annual Modello 730 / Redditi PF tax return.
- From FY 2026, renting 3 or more residential units for short-term stays triggers automatic classification as a business (presunzione d'impresa), requiring a Partita IVA, INPS registration, and exclusion from cedolare secca.
- Most municipalities levy a tourist tax (imposta di soggiorno) per guest per night; platforms may collect and remit it automatically in registered municipalities, but hosts remain liable where platforms do not collect.
Deductions
What Can You Deduct?
Under cedolare secca, no expenses are deductible — the flat rate applies to gross income. If you opt out of cedolare secca and declare income under ordinary IRPEF rules, a 50% lump-sum deduction of gross rental income is allowed instead of itemised expenses.
Under cedolare secca, no itemised deductions are permitted — the flat rate is applied to gross rental receipts. Under ordinary IRPEF, Italian law allows a 50% standard deduction of gross rental income (forfettaria reduction), so only 50% of gross receipts is taxable. Actual itemised expenses beyond this standard deduction are generally not separately deductible for residential lettings. Business-classified hosts (Partita IVA) follow standard business accounting rules.
Filing Calendar
Key Dates & Filing Calendar
Italy's personal income tax year runs January–December; the main filing window is mid-year of the following year.
If a platform withholds 21% but your second (or further) unit is taxable at 26%, you must declare and pay the additional 5% yourself via your annual return.
Airbnb Help Centre – Italy income tax withholding overview (2024); Booking.com Partner Hub – STR withholding tax Italy (2024); Agenzia delle Entrate Circolare n. 24/2017.
Tax Regimes
Cedolare Secca vs. Ordinary IRPEF: Which Applies to You?
Non-professional hosts choose between the flat cedolare secca substitute tax and ordinary progressive IRPEF rates. Business-classified hosts (3+ units from 2026) must use business income rules.
Cedolare Secca (Flat Tax)
21% on first unit, 26% on second+ unit — no deductions, no IRPEF surcharges
- Flat 21% rate on gross rental income for your chosen first unit; 26% on any second and further units
- Replaces IRPEF, regional and municipal surtaxes — no additional income tax surcharges
- Platforms withhold 21% at source and remit monthly; hosts top up any extra 5% via annual return
- No itemised expense deductions permitted under this regime
- Certificazione Unica issued by platforms by 16 March confirms amounts withheld
Up to 2 units (from FY 2026, 3+ units triggers business classification)
Ordinary IRPEF (Progressive Rates)
Progressive rates 23%–43% on 50% of gross rental income
- Rental income is reduced by a standard 50% forfettaria deduction; the remaining 50% is added to other income and taxed at progressive IRPEF rates (23%–43%)
- Regional (up to ~2.03%) and municipal (up to 0.9%) surtaxes also apply
- Allows deduction of actual expenses only via the 50% standard reduction — not itemised beyond that for residential lettings
- Generally less advantageous than cedolare secca for most STR hosts
- Must be declared on Modello Redditi PF or Modello 730
No ceiling — applies to any host who opts out of cedolare secca
Business Income (Partita IVA / Regime Forfettario)
Mandatory from FY 2026 if you rent 3+ units short-term
- From FY 2026, renting 3+ units short-term is automatically classified as entrepreneurial activity (presunzione d'impresa)
- Requires opening a Partita IVA (VAT number) and registering with INPS for social security contributions
- Cedolare secca is not available; income taxed as business income
- Regime Forfettario (5% for first 5 years, then 15% flat rate) may be available for eligible hosts below the €85,000 revenue threshold
- INPS contributions add a fixed cost even if profits are low
Applies when 3+ residential units are rented short-term in a tax year
Depreciation
Depreciation for STR Hosts in Italy
Depreciation (ammortamento) is only relevant for hosts taxed as a business (Partita IVA). Under cedolare secca or ordinary IRPEF for non-professional landlords, depreciation of the property itself is not deductible.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential building (fabbricato) | Not depreciable for non-professional landlords | Land and buildings are not depreciable under cedolare secca or ordinary IRPEF rental income rules. Business-classified hosts may depreciate at rates set by Ministerial Decree. |
| Furniture & furnishings (mobili) | ~15% per year (business context) | Relevant only for Partita IVA / business hosts. Under cedolare secca, no separate furniture depreciation deduction is available. |
| Electronic equipment / appliances | ~20–25% per year (business context) | Applicable only where income is declared as business income. Rates set by Ministerial Decree vary by sector. |
For non-professional hosts using cedolare secca, no depreciation deductions are permitted. For hosts operating under Partita IVA, depreciation rates are governed by the Ministerial Decree on fixed-asset depreciation (IRES rules). Land is never depreciable.
Italy does not have a specific STR depreciation recapture rule equivalent to the US system. Business hosts disposing of depreciable assets may trigger capital gains or recapture under standard Italian business tax rules.
Imposta di Soggiorno
Tourist Tax (Imposta di Soggiorno)
Most Italian municipalities levy a tourist tax per guest per night. Rates vary widely by city and accommodation category.
The imposta di soggiorno is set by each municipality and applies per person per night. It is separate from income tax and is collected from guests. From 2024, platforms like Airbnb are obliged to collect and remit tourist tax in municipalities that have registered with their portal. Where platforms do not collect, hosts remain solely liable.
Varies by municipality — typically €1–€10 per person per night
Airbnb Help Centre – Tourist tax collection and remittance in Italy (2024); individual municipality official websites.
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| STR via Airbnb (registered municipality) | Airbnb collects from guest and remits to municipality | Tourist tax flows through Airbnb; host does not handle the cash but should verify collection is active for their listing |
| STR via Booking.com or other platforms (registered municipality) | Platform collects and remits where registered | Check platform dashboard to confirm collection is active; host liability remains for any gaps |
| STR in municipality not registered with platform | Host collects from guest and remits to municipality | Host must collect tourist tax in cash or via payment at check-in and remit to the local authority per municipal rules |
Tourist tax collected and passed through by platforms is not considered rental income and is not subject to the 21% cedolare secca withholding. Rates and exemptions (e.g. for children, residents, medical patients) vary by municipality. Always check your specific municipality's official rules.
Platforms
How Airbnb & Booking.com Handle Italian STR Taxes
Italian law requires intermediary platforms to withhold income tax and, in registered municipalities, to collect tourist tax on behalf of hosts.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Yes — reports to Agenzia delle Entrate and withholds 21% cedolare secca for non-professional hosts | Yes, in municipalities registered with Airbnb's tourist tax portal | Issues Certificazione Unica by 16 March each year showing total withholdings |
| Booking.com | Yes — withholds 21% cedolare secca for eligible partners and remits monthly to Agenzia delle Entrate | Varies — check Booking.com extranet for your municipality | Issues annual certificate by 16 March showing tax remitted on your behalf |
| Vrbo / HomeAway | Subject to DAC7 reporting obligations; withholding obligations depend on platform setup — verify directly | Not confirmed for all Italian municipalities — host should verify | Check platform account for available tax documentation |
Using Multiple Platforms
If you list on more than one platform, each platform withholds 21% independently on its own payouts. You must aggregate all income across platforms on your annual tax return (Modello 730 or Redditi PF). If your combined income pushes a second unit into the 26% bracket, you must pay the extra 5% yourself. Keep Certificazione Unica documents from every platform.
EU DAC7 Reporting
Under EU Directive DAC7 (implemented in Italy), digital platforms operating in the EU must report seller/host income to national tax authorities annually from 2023 onwards. Italian hosts' earnings on all major platforms are therefore visible to the Agenzia delle Entrate regardless of whether the platform withholds tax.
Airbnb Help Centre – Italy income tax withholding (2024); Booking.com Partner Hub – STR withholding tax Italy (2024); EU DAC7 Directive 2021/514.
Illustrative P&L: Cedolare Secca vs. Ordinary IRPEF
Example: single unit, €15,000 gross STR income, host in 27% IRPEF bracket. For illustration only.
Record-Keeping
Stay Audit-Ready
Italian tax law requires hosts to retain documentation supporting their rental income and any tax positions taken.
| Keep | How long | Why |
|---|---|---|
| Certificazione Unica from each platform | 5 years minimum | Proves withholding tax was remitted on your behalf; needed to reconcile your annual return |
| Booking records / reservation confirmations | 5 years | Supports gross income declared; required if Agenzia delle Entrate queries your return |
| Tourist tax collection records (where host collects) | 5 years | Municipalities may audit tourist tax remittance separately from income tax |
| Rental contracts / guest communications | 5 years | Confirms stays were ≤30 nights (qualifying for cedolare secca) and parties were private individuals |
| Expense receipts (if using ordinary IRPEF) | 5 years | Required to support any deductions claimed under ordinary IRPEF regime |
Italy's general tax assessment limitation period is typically 5 years from the filing deadline. Keep all STR-related documents for at least 5 years. If you have not filed a return, the limitation period does not start running.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
This page is for educational purposes only and does not constitute tax advice. Italian STR tax rules changed significantly with the 2024 and 2026 Budget Laws. Always verify current rules with the Agenzia delle Entrate or a qualified Italian tax adviser (commercialista).
- Agenzia delle Entrate – Circolare n. 24/E del 12 ottobre 2017 — Official guidance on the application of cedolare secca to short-term rentals and platform withholding obligations under Legislative Decree 50/2017.
- Legislative Decree 50/2017, Article 4 (as amended by 2024 Budget Law) — Primary legislation governing STR tax rules in Italy, including platform withholding obligations, cedolare secca rates, and tourist tax collection duties.
- Italian Budget Law 2026 (Law 199/2025) — Introduced the three-unit entrepreneurial threshold (presunzione d'impresa) from FY 2026 and confirmed continuation of 21%/26% cedolare secca bifurcation.
- Airbnb Help Centre – Italy income tax withholding overview — Platform-specific explanation of 21% withholding, Certificazione Unica issuance, and non-professional host criteria. airbnb.com/help/article/3527
- Airbnb Help Centre – Tourist tax collection and remittance in Italy — Details on Airbnb's tourist tax collection obligations from 2024 and municipality registration process. airbnb.com/help/article/2287
- Booking.com Partner Hub – STR withholding tax Italy — Booking.com's explanation of 21% withholding, monthly remittance, and annual certificate issuance. partner.booking.com
- Taxing.it – Italian Tax Aspects of Renting Italian Real Estate (2026) — Analysis of 2026 legislative changes including three-unit threshold, 21%/26% rate bifurcation, and Regime Forfettario options. taxing.it
- PwC Worldwide Tax Summaries – Italy Corporate Deductions — Reference for Italian depreciation rates and rules under IRES for business taxpayers. taxsummaries.pwc.com/italy
- EU Directive DAC7 (2021/514) — EU directive requiring digital platforms to report seller income to tax authorities, implemented in Italy from 2023.
Questions
Frequently Asked Questions
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