Short Term Rental Taxation in Italy: Complete Guide and Latest Legislative News 2026

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.

However, it should be noted and subsequent legislative changes (in particular from Budget Law 2024 and 2026) have made changes to the application contents of paragraph 2 of Article 4:
– modifying the flat-rate tax rates based on the number of properties
– and the threshold regime for access to it based on the number of properties intended for short-term rental.

Starting from 2026, the flat tax rate is structured as follows:

• 21% for those who rent a single property;
• 26% for the second property;
• from the 3rd property onwards, the short-term rental activity is presumed to be entrepreneurial, with consequent obligation to open a VAT number and the impossibility of applying the flat-rate tax.

It is important to note that, for contracts in which the flat-rate tax option has been exercised, No registration tax or stamp duty is due, ordinarily provided for in the event of registrations, resolutions or extensions of rental contracts.

This exemption applies only up to a maximum of 2 real estate units managed on short-term lease; beyond this limit, the activity is configured as habitual and commercial, with the consequent obligation to open a VAT number and apply the ordinary tax regime.

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.
 

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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

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

The flat-rate tax is applied only in cases of short-term rental of a maximum of 2 apartments for each tax period.

If the managed units exceed the number of 2, therefore from the third unit onwards, the short-term rental activity it is configured as a habitual commercial activity pursuant to Article 2082 of the Civil Code, with consequent obligation to open a VAT number e exclusion from the flat-rate tax regime.

Therefore, if the landlord decides to manage more than four properties, it is necessary to operate with a VAT number. The Italian legal system provides for three main tax regimes:

• Flat rate

• Simplified (applicable to sole proprietorships and partnerships)

• Ordinary

Depending on the chosen regime, and after a tax consultation, it will be possible to take advantage of certain deductions, for example for property management and maintenance costs, such as cleaning, utilities, taxes, and insurance.

These deductions contribute to reduce the overall amount of income tax due.

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Short-Term Rentals: New Rules for 2026 and Taxes to Pay

Article 19 of the 2024 Budget Law introduced significant changes to the taxation of short-term rentals, which were confirmed and supplemented by the 2026 regulations. Specifically:

• La dry coupon subtraction 21% for those who rent a single property;

• Salt to 26% for the second property;

• From the third unit, the short-term rental activity is configured as usual business activity, with the obligation to open the VAT number and application of the ordinary tax regime, without the possibility of using the flat-rate tax.

Who manages a single apartment can continue to benefit from the 21% flat-rate tax, as in previous years.

In conclusion, the taxation of short-term rentals in Italy remains a complex issue, which requires up-to-date knowledge of national and local tax laws.

We invite you to follow our social channels and read our blog to stay up to date on local laws and regulations that may impact the management of short-term rentals.

FAQ – Short-Term Rental Taxation: 6 Solutions Explained Simply

• What are the ways to pay taxes on short-term rentals?
  You can choose between 6 main solutions: flat-rate tax, ordinary IRPEF, flat-rate scheme, business activities with VAT number, companies and combinations of multiple schemes.

• When is the flat-rate tax on short-term rentals worthwhile?
  It's convenient if you rent a few properties: you pay aflat rate tax (21% or 26%) and you don't have to handle complex calculations.

• Is flat-rate tax or personal income tax better for short-term rentals?
  The flat rate tax is simpler, while the IRPEF can be convenient if you have a lot of expenses to be deduced.

• How does the flat-rate scheme for short-term rentals work?
  It is a VAT regime with reduced taxation, suitable for those who manage rentals on an ongoing basis.

• When is a VAT number required for short-term rentals?
  It is mandatory when the activity becomes habitual or you manage multiple properties (usually 3 and up).

• What changes for short-term rental businesses?
  You have to manage accounting and contributions, but you can deduct many expenses and structure the business better.

• Can multiple tax regimes be used together?
  Yes, in some cases it is possible. combine multiple regimes to optimize overall taxation.

• How to choose the best tax regime for short-term rentals?
  It depends on properties, revenues and costs: for this reason It is important to analyze each specific case.

• Is it worth hiring a professional property manager for short-term rentals?
  Yup, an experienced property manager can help you not only in operational management, but also to identify the most suitable tax solution, avoiding errors and optimizing profits in compliance with the regulations.

• Why trust a manager like CleanBnB?
  A professional manager knows the updated rules on short-term rentals and supports you in complete management, including correct tax setup in collaboration with expert consultants.

Article updated with the latest legislative news for 2026