Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Italy tax professional before filing.
Milan, Italy · Italy · Short-term rental taxes
Short-Term Rental Taxes in Milan, Italy
STR income earned by non-professional hosts in Milan is subject to Italy's flat **Cedolare Secca** withholding tax (21% on the first property, 26% on additional ones), plus Milan's municipal tourist tax (**Imposta di Soggiorno**) collected per guest per night.
The 30-Second Answer
- Cedolare Secca is Italy's flat income tax on short-term rental (≤30 nights) income: 21% on your first property, 26% on any second or further property rented short-term.
- From 2026, renting 3 or more residential units short-term triggers automatic classification as a business (*presunzione d'impresa*), requiring a Partita IVA (VAT number) and INPS registration — Cedolare Secca no longer applies to those units.
- Platforms like Airbnb and Booking.com withhold 21% at source and remit it to the Agenzia delle Entrate; they issue a Certificazione Unica by 16 March each year so you can reconcile on your annual return.
- Milan's Imposta di Soggiorno (tourist tax) applies per guest per night; Airbnb collects and remits it automatically for Milan if you are registered in their tourist-tax portal — verify your listing settings.
Deductions
What Can Milan STR Hosts Deduct?
Under Cedolare Secca you pay a flat rate on gross rental income — no itemised deductions are allowed. If you opt for ordinary IRPEF taxation instead, actual costs can be deducted, but this is rarely advantageous for most hosts.
Under Cedolare Secca — the default and usually optimal regime for non-professional hosts — no deductions are permitted; the flat rate applies to gross receipts. Deductions above are only relevant if you elect ordinary IRPEF taxation. Tourist tax collected on behalf of guests is a pass-through and is not treated as your income.
Filing Calendar
Key Dates & Filing Calendar
Italian personal income tax runs on a calendar year; the main filing and payment deadlines below apply to Milan-based STR hosts.
If a platform withholds 21% but your second property is taxable at 26%, you must pay the extra 5% yourself via your annual tax return.
Agenzia delle Entrate – Circolare n. 24/2017; Law Decree 50/2017 Art. 4; 2024 Budget Law; Airbnb Help (article 3527)
Tax Regimes
Cedolare Secca vs. Ordinary IRPEF: Which Applies to You?
Non-professional hosts in Milan choose between Italy's flat Cedolare Secca and ordinary progressive IRPEF. From 2026, hosts with 3+ STR units must register as a business and cannot use Cedolare Secca.
Cedolare Secca (Flat Tax)
21% on your first STR property; 26% on the second and beyond
- Flat 21% rate on gross rental income for the one property you designate; 26% on any additional STR property.
- No itemised deductions — the flat rate applies to total receipts including cleaning fees.
- Platforms withhold 21% at source and remit to Agenzia delle Entrate monthly; you reconcile the extra 5% on second properties in your annual return.
- Simpler administration: no need to track individual expenses for the rental.
Up to 2 STR residential units (from 2026, 3+ units triggers business classification)
Ordinary IRPEF (Progressive Tax)
Progressive rates 23%–43% on net rental income after deductions
- Rental income added to other income and taxed at progressive IRPEF rates: 23% (up to €28,000), 35% (€28,001–€50,000), 43% (above €50,000).
- Actual documented costs (cleaning, repairs, management fees, utilities, depreciation) are deductible.
- More complex record-keeping and filing requirements.
- Generally less favourable than Cedolare Secca unless deductible costs are very substantial.
No ceiling, but rarely beneficial for STR hosts
Regime Forfettario (Flat-Rate Business Regime)
15% (or 5% for start-ups) on a deemed profit — only if classified as a business
- Applies only if the host is required to open a Partita IVA (3+ STR units from 2026).
- Tax is 15% (5% for the first 5 years of a new business) on a forfettario (deemed) profit — a fixed percentage of revenue set by activity code.
- Requires INPS social security contributions, adding fixed costs even if profits are low.
- Cedolare Secca is not available once classified as a business.
€85,000 annual turnover
Depreciation
Depreciation for Milan STR Hosts
Depreciation is only relevant if you opt for ordinary IRPEF taxation — it is not deductible under Cedolare Secca. Rates below follow Italian Ministerial Decree tables for residential property assets.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential building structure | Not depreciable for individual (non-business) hosts | Land and building structure cannot be depreciated by non-business individual landlords under Italian tax rules. |
| Furniture & furnishings | ~8–10 years (10–12.5% per year) | Deductible under ordinary IRPEF; rate set by Ministerial Decree. Not deductible under Cedolare Secca. |
| Appliances & electronics | ~5 years (20% per year) | Deductible under ordinary IRPEF only. Keep purchase receipts. |
| Renovation / improvement costs | Spread over useful life or deducted as maintenance | Ordinary maintenance is deducted in the year incurred; capital improvements may need to be capitalised and depreciated. |
Depreciation rules for individual non-business landlords under ordinary IRPEF differ from corporate (IRES) rules. The Ministerial Decree rates cited in PwC Tax Summaries apply primarily to corporate taxpayers; individual landlords should confirm applicable rates with a qualified Italian commercialista.
Italy does not have a specific 'depreciation recapture' tax for individual landlords analogous to some other jurisdictions, but any gain on sale of property held less than 5 years may be subject to capital gains tax (plusvalenza) at 26%.
Imposta di Soggiorno
Milan's Tourist Tax (Imposta di Soggiorno)
Milan levies a per-guest, per-night tourist tax on all paying guests. Hosts (or platforms on their behalf) collect and remit this to the Comune di Milano — it is not your income.
The Imposta di Soggiorno is set by each Italian municipality. Milan's rates vary by accommodation category and star rating. The rates below reflect Milan's current schedule for short-term rental (non-hotel) accommodation. Always verify the current rate on the Comune di Milano website as rates can change.
Up to €5.00 per guest per night for STR apartments in Milan
Comune di Milano – Imposta di Soggiorno; Airbnb Help article 2287 (tourist tax collection in Italy)
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking (Milan municipality enrolled) | Airbnb collects from guest at booking and remits monthly to Comune di Milano | Tourist tax flows through Airbnb — do not record as your income or expense; verify your listing is in the correct category in Airbnb's portal. |
| Booking.com booking | Booking.com may collect and remit; confirm in your partner portal | Check your Booking.com extranet to confirm tourist tax collection status for Milan; if not collected by platform, you must collect from guests and remit yourself. |
| Direct booking / other platforms | Host collects from guest and remits to Comune di Milano | You must collect the correct amount per guest per night, keep records, and remit quarterly to the Comune di Milano using their online portal. |
Children under 14 are typically exempt from the tourist tax in Milan. The tax applies for a maximum of 14 consecutive nights per stay. Rates and exemptions should be verified directly with the Comune di Milano as they are subject to change.
Platforms
How Airbnb & Booking.com Handle Milan STR Taxes
Both major platforms have obligations under Italian law to withhold income tax and, in many cases, collect tourist tax on behalf of Milan hosts.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Yes — remits 21% Cedolare Secca withholding to Agenzia delle Entrate monthly | Yes — collects and remits Imposta di Soggiorno to Comune di Milano if your municipality is enrolled in Airbnb's tourist-tax portal | Issues Certificazione Unica by 16 March each year showing total withholding remitted |
| Booking.com | Yes — withholds 21% Cedolare Secca for qualifying residential STR hosts and remits to Agenzia delle Entrate monthly | Partial — check your Booking.com extranet; tourist tax collection depends on municipality enrollment | Issues annual certificate of tax withheld; certificates sent by March 16 |
| VRBO / Vrbo | Verify in your host dashboard — Italian withholding obligations apply to all qualifying platforms | Verify in your host dashboard | Check platform documentation for Certificazione Unica issuance |
Listing on Multiple Platforms
If you list on Airbnb and Booking.com simultaneously, each platform withholds 21% on its own payouts. You must aggregate all income on your annual tax return (Modello 730 or Redditi PF). If your combined STR income across platforms relates to a second property, you owe the extra 5% (to reach 26%) on that property's income — platforms only withhold 21% by default. Keep Certificazioni Uniche from every platform.
EU DAC7 Reporting
Under EU Directive DAC7 (implemented in Italy from 2023), digital platforms must report seller income to tax authorities annually. Airbnb and Booking.com report your earnings to the Agenzia delle Entrate. This data is cross-referenced with your tax return — ensure all platform income is declared.
Airbnb Help article 3527 (Italy income tax withholding); Booking.com Partner Help (STR withholding tax Italy); Law Decree 50/2017 Art. 4 as amended by 2024 Budget Law
Illustrative P&L: Cedolare Secca vs. Ordinary IRPEF
Example: Milan host, one STR property, €20,000 gross rental income, €5,000 in documented costs. IRPEF rate assumed at 35% bracket.
Record-Keeping
Stay Audit-Ready: What Milan STR Hosts Should Keep
Italian tax law requires you to retain documentation supporting your tax return. The Agenzia delle Entrate can audit returns up to 5 years after filing (extended in cases of fraud).
| Keep | How long | Why |
|---|---|---|
| Certificazione Unica from each platform (Airbnb, Booking.com, etc.) | 5 years from filing | Proves withholding tax remitted on your behalf; needed to reconcile your annual return |
| Booking records / reservation confirmations | 5 years from filing | Supports gross income declared; shows number of nights and guests for tourist-tax calculation |
| Tourist tax collection & remittance records | 5 years from filing | Comune di Milano can audit tourist tax compliance separately from income tax |
| Receipts for deductible expenses (if using ordinary IRPEF) | 5 years from filing | Required to substantiate any deductions claimed against rental income |
| Property ownership documents & lease/rental contracts | Indefinitely (while you own the property) | Establishes your right to rent; may be required for registration with local authorities (SCIA/CIR code) |
Milan hosts must also register their STR with the Comune di Milano and obtain a CIR (Codice Identificativo di Riferimento) regional identification code, which must appear in all listings and advertisements. Failure to display the CIR code can result in fines.
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. Tax rules change frequently — always verify current rates and deadlines with the Agenzia delle Entrate, Comune di Milano, or a qualified Italian commercialista (tax advisor).
- Agenzia delle Entrate – Circolare n. 24/2017 — Official guidance on the short-term rental tax regime (Cedolare Secca) introduced by Law Decree 50/2017, Art. 4.
- Law Decree 50/2017, Art. 4 (as amended by 2024 Budget Law and Law 199/2025) — Primary legislation governing Cedolare Secca withholding on STR income, platform obligations, and the 2026 three-unit entrepreneurial threshold.
- Airbnb Help Center – Italy income tax withholding (article 3527) — Explains Airbnb's 21% withholding obligation, Certificazione Unica issuance, and non-professional host definition.
- Airbnb Help Center – Tourist tax collection in Italy (article 2287) — Explains Airbnb's tourist tax collection and remittance obligations in Italian municipalities including Milan.
- Booking.com Partner Help – STR withholding tax Italy — Explains Booking.com's 21% withholding obligation and annual certificate issuance for Italian STR partners.
- Taxing.it – Italian Tax Aspects of Renting Italian Real Estate — Analysis of the 2026 three-unit threshold, 21%/26% bifurcation, and Regime Forfettario option for business-classified hosts.
- Comune di Milano – Imposta di Soggiorno — Milan's official tourist tax rates, exemptions, and remittance procedures for accommodation providers.
- PwC Worldwide Tax Summaries – Italy Corporate Deductions — Reference for Italian depreciation rates under Ministerial Decree (primarily corporate context; individual rules differ).
Questions
Frequently Asked Questions: Milan STR Taxes
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