Short Term Rental Taxation in Italy: Complete Guide and Latest Legislative News 2025

Short-term rentals are an increasingly popular form of accommodation, and there are many today hosts who wish to make their home profitable in the tourism sector.

Among the questions that an owner asks himself before placing a property on the tourist market, the main one is:

How much do you pay in taxes for short-term rentals?

Calculate the taxation of short-term rentals and the real convenience deriving, for example, from the conversion of a traditional rental into a short-term one, is a legitimate need for anyone who wants to approach this sector.

The earning potential from renting a home like Airbnb depends on several factors, including la location, size of property, quality of accommodation and demand in the area, but tax considerations must certainly also be made.

In this article, we will review the main tax considerations in the Italian context, a topic that you can also explore further here.

The taxation of short-term rentals is an important and complex issue

First of all, it should be noted that for it to be a short-term rental, certain characteristics must be respected:

• The property rented for a short period must be for residential use
• The duration of each stay must not exceed 30 days per year
• The subjects involved in the contract must be natural persons, outside the business activity
• The linen supply and cleaning service is permitted, but only before the start of the stay

Tax regime and flat rate tax:

The tax regime for short-term rentals is governed by article 4, paragraphs 2 and 3, of Legislative Decree no. 50/2017.

It provides for the possibility of applying the simplified regime of the "flat tax"“, a flat-rate substitute tax.

Starting from 2025, the flat tax rate is structured as follows:

• 21% for those who rent a single property. 
• 26% for any additional properties (from 2 to 4). 
• More than 4 properties: obligation to open a VAT number, as the activity is considered entrepreneurial. 

It is important to note that, for contracts in which the flat-rate tax option has been exercised, the registration tax and stamp duty, ordinarily foreseen in the case of registrations, resolutions or extensions of rental contracts, are not due.

This reference regulation applies exclusively to the rental of apartments or portions of apartments (single rooms or portions of villas) for residential housing purposes for a limited period (up to a maximum of 30 days in a calendar year).

In other cases, in fact, the rental activity is presumed carried out in an entrepreneurial manner and therefore the dry tax regime cannot be applied.

New obligations for owners:

From 1 January 2025, every property intended for short-term rentals must be registered in the Database of Accommodation Facilities (BDSR) to obtain the National Identification Code (CIN).

This code must be displayed both physically outside the building where the property is located, and in the advertisements published on online platforms such as Airbnb or Booking.com.

Failure to display the CIN may result in fines ranging from 800 to 8.000 euros.

Taxation of tourist rentals: the income tax return

In our country therefore the income deriving from short-term rentals must be declared and taxed as rental income.

At the time of the tax return, it is also decided whether to take advantage of the flat-rate tax benefits or whether to apply ordinary taxation on the total amount received from short-term rentals.

Tourist tax

For the sake of completeness, we also include tourist taxes among the short-term rental taxes.

In many Italian cities, there is atourist tax which must be paid by visitors staying in tourist accommodation.

This tax is usually calculated based on the number of nights spent and can vary from city to city.

So these are not taxes that are paid by the owner, but taxes that he collects from guests and pays to local authorities.

In summary: the salient points of short-term rental taxation

To recap: the flat-rate tax applies only in cases where no more than four apartments are intended for short-term rental for each tax period.

If the managed units are more than 4, theshort-term rental activities are presumed to be carried out in an entrepreneurial manner pursuant to article 2082 of the civil code, with consequent obligation to open the VAT number and exclusion from the flat rate tax regime.

Therefore, if the landlord decides to manage a number of properties exceeding the permitted numerical limit, it would be essential the opening of the VAT numberOur Italian legal system provides and regulates three tax regimes:

• Flat rate
• Simplified (in which sole proprietorships and partnerships are interested)
• Ordinary

In this case, depending on the regime chosen after necessary tax advice, it will be possible or not to benefit from some tax deductions.

For example, you can deduct expenses related to the maintenance and management of the property, such as cleaning costs, utilities and taxes.

These deductions can help reduce the overall amount of income tax owed.

Short-term rentals: the new rules expected for 2025 and the taxes to be paid

Article 19 of the 2024 Budget Maneuver introduced the Increase in taxes on short-term rental income, with a flat tax rate that goes from 21 to 26 percent for those who dedicate more than one property to short-term rentals.

La flat rate tax on short term rentals has therefore increased to 26%, but only from second unit.

So those who have only one apartment to use for short-term rentals can continue to do so with the same taxation applied to date.

In conclusion, the taxation of short-term rentals in Italy is a complex issue that requires adequate knowledge of national and local tax laws.

We invite you to follow our social channels and read our blog to stay informed about local laws and regulations that could affect the management of short-term rentals in Italy.

Article updated with the latest legislative news March 2025