Italy's short-term rental tax works like this in 2026: if you let a flat for 30 days or less as a private individual and choose the cedolare secca flat tax, rent from one property of your choice is taxed at 21% and rent from any other property at 26%, on the gross amount with no deductions. Since 1 January 2026 this private regime covers at most two apartments; from the third, the law presumes you are running a business. Platforms that collect the rent withhold 21% as an advance. As of 31 October 2026, the 2027 budget bill approved by the government on 28 October leaves these short-let rates unchanged, according to press reports on the bill.
This guide is for owners and investors who let homes to tourists in Italy. It is general information, not tax or legal advice, and it reflects the official documents listed at the end, checked on 31 October 2026. Ask a commercialista (accountant) about your own case.
Is the flat tax on short lets 21% or 26%?
Both. Since 1 January 2024 (Budget Law 213/2023, article 1, paragraph 63), the standard cedolare secca rate on short-term rentals is 26%. The 21% rate applies to the short lets of one property per tax year, which you choose yourself in your income tax return. The Agenzia delle Entrate (Italy's tax agency) confirmed this in Circular 10/E of 10 May 2024.
| Your situation in 2026 | Tax on the rent |
|---|---|
| One apartment let short-term, flat tax chosen | 21% of gross rent |
| Two apartments let short-term, flat tax chosen | 21% on the one you pick, 26% on the other |
| Flat tax not chosen | Ordinary income tax (IRPEF) at your marginal rate |
| Three or more apartments let short-term | Presumed business: the private short-let regime no longer applies |
The choice of the 21% property is made year by year, so it usually makes sense to assign it to the flat that earns the most. A short let here means a residential lease of up to 30 days signed by an individual outside a business; basic services such as cleaning, linen and wi-fi are allowed, while services like breakfast or car hire make it a commercial activity, according to the Agenzia delle Entrate's short-let guide.
From how many properties do you need a VAT number?
From the third. The 2026 Budget Law (Law 199/2025, article 1, paragraph 17) amended the earlier rule (Law 178/2020, paragraph 595) and cut the limit from four apartments to two, from 2026. If you let more than two apartments short-term in a tax year, the activity is presumed to be a business, whoever carries it out. Running a business in Italy normally means opening a partita IVA (VAT number) and leaving the cedolare secca.
The change also affects the paperwork with the region and the municipality. A circular of the Emilia-Romagna Region dated 28 January 2026 notes that the law has no transition period: an owner with three apartments must either reduce to two or switch to a business format, such as holiday homes and apartments run as a business, filing a SCIA (certified notice of start of activity) with the municipality. Every unit also still needs its national CIN code, as our Florence guide below explains.
What does the 2027 budget law change?
For short lets, nothing so far. The government (Council of Ministers) approved the 2027 budget bill on 28 October 2026. Press reports on the bill describe cuts for long-term leases from 1 January 2027: the flat tax on regulated-rent contracts (canone concordato) would fall from 10% to 5%, and to 1% when the tenant is 35 or younger, while small shops would return to the 21% flat tax. The same reports state that tourist lets stay at 21% on the first property and 26% on the second, with the business presumption from the third.
Two cautions. First, as of 30 October 2026 the text had not yet been tabled in Parliament, and budget bills are often amended before final approval at the end of December. Second, history shows how much can move: a draft of the 2026 budget in October 2025 would have taxed all short lets at 26%, but the final law kept the 21%/26% split and changed the apartment limit instead. We will update this page when the final text is published.
What the 2027 bill may change is the comparison. If regulated long-term rents are taxed at 5% or 1%, some owners will compare a short let at 21% or 26% (plus platform fees, cleaning and empty nights) with a stable tenant. Our analysis of why a fully booked rental can still earn little shows which costs to count before deciding.
How and when is the tax paid when Airbnb or Booking withholds it?
When a platform or agency collects the rent or takes part in the payment, it must withhold 21% of the gross amount the guest pays and pay it to the State by the 16th of the following month. Since 2024 this withholding is always an advance (a titolo d'acconto), whatever tax regime you choose. Non-EU platforms without an Italian or EU establishment must appoint a tax representative in Italy to do this.
You then settle the difference in your annual income tax return (730 or Redditi PF): you calculate the tax due, subtract the withholdings shown on the platform's certificate, and pay any balance by the deadline for income tax balances. A worked example for an owner with two flats, both booked through a platform that withholds:
| Flat A (chosen for 21%) | Flat B (26%) | |
|---|---|---|
| Gross rent paid by guests | €20,000 | €20,000 |
| Flat tax due | €4,200 | €5,200 |
| Already withheld by the platform (21%) | €4,200 | €4,200 |
| Balance to pay in the tax return | €0 | €1,000 |
Platforms and agencies must also report each contract to the Agenzia delle Entrate by 30 June of the following year. For bookings you take directly, nothing is withheld and you pay the whole tax through your return.
Is the tax calculated on gross or net income?
On gross. The flat tax applies to the full rent stated in the contract, with no deduction for expenses and without the 5% flat reduction that applies under ordinary income tax. The 21% platform withholding is likewise calculated on the full amount the guest pays, including any commission the owner owes the platform. Utility costs stay outside the base only if the guest pays them directly or you recharge them at actual cost and consumption. This is why, in high-cost cities, net income can be much lower than the headline rate suggests.
What else should owners check before letting?
Tax is only one layer. Cities add their own rules and a tourist tax: Florence has blocked new short lets in its historic centre and other zones (see our guide to Florence's short-term rental rules), and Milan charges €9.50 per guest per night for short lets in 2026 (see Milan tourist tax 2026). Before buying or converting a flat, a local agency can tell you about the building's rules, demand by area and whether a long-term contract would earn more. Our directories list agencies in Florence, Rome, Milan and Bologna, and our City Guides describe each neighbourhood.
FAQ
What is the short-term rental tax rate in Italy in 2026?
With the cedolare secca flat tax, 21% for one property chosen by the owner and 26% for any other, on gross rent. Without it, ordinary income tax applies.
How many short-term rentals can I have without a VAT number?
Two. From 2026, letting three or more apartments short-term in the same year is presumed to be a business.
Does Airbnb pay the tax for me?
No. It withholds 21% as an advance when it collects the rent. You still declare the income and pay any balance, for example the extra 5% on a property taxed at 26%.
Does the 2027 budget raise the tax on short lets?
Not in the bill approved by the government on 28 October 2026, according to press reports. The bill can still change in Parliament before the end of December.
Can I deduct cleaning, commissions or furniture?
Not under the flat tax: it is charged on gross rent with no deductions.
Official sources (opened on 31 October 2026): Agenzia delle Entrate, Circular 10/E of 10 May 2024 on short lets, Agenzia delle Entrate, guide "Locazioni brevi: la disciplina fiscale e le regole per gli intermediari" (August 2024 edition, copy published by FIMAA Milano), Law 199 of 30 December 2025 (2026 Budget Law), article 1, paragraph 17 (text published by Finanza e Fisco) and Emilia-Romagna Region, circular of 28 January 2026 on the two-apartment limit. On the 2027 budget bill (press reports, not the official text): Euronews, 28 October 2026, Milano Finanza, 29 October 2026, Adnkronos, 29 October 2026 and La Legge per Tutti, 30 October 2026.
Photo credits: cover by Marina Samardzic (Verona) and a Milan facade by Raphael Lopes, both via Unsplash (Unsplash License).
