Short Term Rentals

The "Short Term Rental" is the contract that:

- concerns residential properties, or a part of them, located in Italy (for residential use, cadastral categories A1, A2, A3, A4, A5, A6, A7, A8, A9, A11 and related appurtenances);

- is of a duration not exceeding 30 days (if during the tax year the duration of the contracts between the same parties exceeds this term, the contract must be registered with the Revenue Agency);

- it is stipulated by natural persons, directly or through real estate intermediaries or entities that manage online portals;

- it is stipulated outside of the business exercise by both contractors;

- The number of real estate units permitted under this regime cannot exceed four (if a taxpayer has five apartments, but only three of them are designated for short-term rentals, while the other two are rented under the standard regime, the presumption of entrepreneurship would not apply). Additional services that are not necessarily related to the residential purpose of the property and that require organization (such as meals, transfer services, guided tours, etc.) cannot be provided. Otherwise, the short-term rental regime ceases to exist and a VAT number must be registered.

Under short-term rentals, the landlord has the option to opt for the flat-rate tax (cedolare secca), applying a 21% substitute tax rate for one property unit identified by the taxpayer and a 26% rate for additional property units. 100% of the rent is subject to taxation. If the flat-rate tax is not chosen, the ordinary rates apply, and 95% of the rent is subject to taxation.