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Understanding Italy's Airbnb tax structure is crucial for property investors considering short-term rental income. As of September 2025, Italian hosts face either a 21% or 26% flat tax rate depending on their specific situation and property count.
The Italian government implemented the "cedolare secca" system to streamline taxation for short-term rentals while ensuring compliance. Your tax rate depends on factors like property ownership type, residency status, and the number of properties you rent through platforms like Airbnb.
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Most non-professional Italian Airbnb hosts pay 21% flat tax on their first property through the cedolare secca system, while additional properties face 26% taxation.
As of 2024, Airbnb automatically withholds and remits these taxes to Italian authorities for eligible hosts, simplifying compliance significantly.
| Scenario | Tax Rate | Key Requirements |
|---|---|---|
| First property, non-professional host | 21% | Cedolare secca, stays under 30 days |
| Additional properties (2nd-4th) | 26% | Same eligibility requirements |
| More than 4 properties | VAT + business tax | Must register as business |
| Non-resident owners | 21% or 26% | Same rates apply regardless of residency |
| Professional hosts with VAT | Varies | Business taxation applies |
| Ordinary income tax regime | 23%-43% | Progressive rates, allows deductions |
Are you renting out an entire property or just a private room in your main residence?
The distinction between renting an entire property versus a private room within your primary residence affects your tax obligations and regulatory requirements.
When you rent an entire residential property on Airbnb for stays under 30 days, you qualify for the cedolare secca flat tax system at either 21% or 26% depending on your property count. This applies whether the property is a standalone apartment, villa, or any complete residential unit.
Private room rentals within your main residence also qualify for cedolare secca taxation, but you must ensure the room is furnished and the stay duration remains under 30 days. The same tax rates apply - 21% for your first property and 26% for additional properties.
Both scenarios require you to operate as a private individual rather than through a business entity. If you provide additional services like breakfast or tour booking, you may lose eligibility for the simplified flat tax system.
Is Airbnb income your main source of income or additional earnings?
Whether Airbnb rental income represents your primary income or supplementary earnings influences your tax filing requirements and potential eligibility for certain regimes.
For most property owners, Airbnb income serves as additional income alongside employment, pensions, or other primary sources. This supplementary income status typically allows you to maintain eligibility for the cedolare secca flat tax system, provided you meet other requirements.
If Airbnb rentals become your main income source through multiple properties, Italian tax authorities may classify your activity as business-oriented. Operating more than four properties requires VAT registration and business taxation rather than the simplified flat tax system.
The classification affects not only your tax rate but also your reporting obligations and potential deductions. Main income earners from Airbnb must comply with business accounting standards and quarterly tax payments.
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Are you an Italian tax resident or non-resident for tax purposes?
Your Italian tax residency status determines the scope of your tax obligations but does not change the Airbnb tax rates themselves.
Italian tax residents must declare all worldwide income, including Airbnb earnings from Italian properties, and can benefit from the same cedolare secca rates of 21% or 26%. Residents file annual tax returns reporting all income sources and can offset taxes already withheld by Airbnb.
Non-residents pay Italian taxes only on income generated within Italy, which includes Airbnb rental income from Italian properties. The same flat tax rates apply - 21% for the first property and 26% for additional properties - regardless of your residency status.
Both residents and non-residents must obtain an Italian tax identification number (Codice Fiscale) to receive the annual Certificazione Unica from Airbnb documenting taxes withheld. Non-residents may also need to consider double taxation treaties between Italy and their home country.
Do you plan to use "cedolare secca" flat tax or ordinary income tax rules?
The cedolare secca flat tax system offers predictable taxation at 21% or 26%, while ordinary income tax uses progressive rates that can exceed these levels depending on your total income.
| Tax System | Rate | Advantages | Disadvantages |
|---|---|---|---|
| Cedolare Secca (First Property) | 21% | Simple flat rate, no deductions needed | Cannot deduct expenses |
| Cedolare Secca (Additional Properties) | 26% | Still flat rate system | Higher rate, no expense deductions |
| Ordinary Income Tax (IRPEF) | 23%-43% | Can deduct property expenses | Complex calculations, higher potential rates |
| Business Regime (4+ properties) | Varies + VAT | Full business deductions | Complex accounting, VAT obligations |
Does "cedolare secca" apply at 21% for short-term rentals, and are your rentals eligible?
The 21% cedolare secca rate applies specifically to your first property used for short-term rentals under 30 days, provided you meet eligibility requirements.
Eligibility requires that you operate as a private individual, not through a business entity, and that rental contracts are for furnished residential properties. The property must be classified as residential use (categories A/1 to A/11 except A/10) in Italian cadastral records.
Starting in 2025, only your first short-term rental property qualifies for the 21% rate. Second, third, and fourth properties face the 26% cedolare secca rate. Operating five or more properties requires business registration and excludes you from the flat tax system entirely.
Direct rental arrangements through platforms like Airbnb qualify for cedolare secca, but subletting or using property management companies may disqualify you from this simplified tax regime.
Do property management companies or business accounts change the tax rules?
Using property management companies or operating through business accounts can disqualify you from the cedolare secca flat tax system.
When you engage a property management company to handle bookings, guest relations, and rental administration, Italian tax authorities may classify your activity as business-oriented rather than individual property letting. This classification typically requires VAT registration and business income taxation.
Airbnb business accounts, designed for professional hosts managing multiple properties, often indicate commercial activity that excludes cedolare secca eligibility. Business account holders must register for VAT and follow standard business taxation rules.
However, if you maintain direct control over rental decisions and use management companies only for specific services like cleaning or maintenance, you may preserve eligibility for flat tax treatment. The key distinction lies in whether you retain primary control over the rental business.
Will your bookings be shorter than 30 days with contracts through Airbnb?
The 30-day threshold is critical for cedolare secca eligibility, and contracts through Airbnb typically satisfy Italian legal requirements for short-term rentals.
Stays exceeding 30 days automatically disqualify from short-term rental taxation and fall under different regulatory frameworks. Italian law requires written contracts for short-term rentals, which Airbnb's booking system and terms of service generally fulfill.
For stays under 30 days, you must still prepare additional written rental agreements that guests sign at check-in, even when booking through Airbnb. These contracts are not subject to tax office registration unless stays exceed 30 days.
The rental duration directly affects not only tax rates but also tourist tax obligations and guest registration requirements with local authorities. Shorter stays typically trigger higher administrative obligations in popular tourist destinations.
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Do municipalities require separate tourist tax collection and remittance?
Most Italian municipalities impose tourist taxes that are separate from income taxes, with rates and collection methods varying significantly by location.
As of September 2025, Airbnb collects and remits tourist taxes automatically in over 1,200 Italian municipalities, including major cities like Milan, Florence, Bologna, and Genoa. In these locations, tourist taxes are automatically added to guest bookings and remitted to local authorities.
Cities like Rome still require hosts to collect tourist taxes independently and remit them quarterly to municipal authorities. Rome charges €3.50 per person per night for up to ten nights, with children under 10 exempt from the tax.
Tourist tax rates typically range from €1 to €5 per person per night depending on the city and accommodation type. These taxes fund local tourism infrastructure and services, and failure to collect and remit them can result in significant penalties from municipal authorities.
Will you cross the €2,000 annual threshold for automatic income reporting?
The €2,000 annual threshold triggers automatic reporting of your Airbnb income to Italian tax authorities under EU DAC7 regulations.
Once your annual Airbnb earnings exceed €2,000, platforms must report your income data to Italian tax authorities regardless of whether you choose cedolare secca or ordinary taxation. This reporting occurs automatically and ensures tax transparency across EU member states.
Even below the €2,000 threshold, DAC7 regulations require Airbnb to report basic host information to tax authorities. The threshold primarily affects the detail level of financial reporting rather than the obligation to report entirely.
This automatic reporting system means Italian tax authorities receive comprehensive data about your Airbnb activity, making accurate tax filing essential for compliance. Underreporting income becomes increasingly difficult with these transparency measures.
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Do EU DAC7 rules mean Airbnb reports your earnings automatically?
EU DAC7 regulations require Airbnb to report all host earnings to Italian tax authorities annually, regardless of income amount, ensuring comprehensive tax transparency.
Since January 2023, DAC7 mandates that digital platforms like Airbnb collect, verify, and report detailed information about EU-resident sellers to respective tax authorities. This includes Italian hosts and properties located in Italy rented by non-residents.
Airbnb reports host data by January 31st each year for the previous calendar year's activity. Italian tax authorities then share this information with other EU member states for hosts with cross-border tax obligations.
The reporting includes host identification, property details, total income earned, and tax withholdings applied. This automatic data sharing makes tax evasion extremely difficult and ensures authorities have complete visibility into short-term rental income.
Do you need VAT registration, or does your activity stay under exemption thresholds?
VAT registration becomes mandatory when your short-term rental activity exceeds specific thresholds or when you operate more than four properties.
- Property count threshold: Operating more than four properties automatically requires VAT registration as your activity is considered entrepreneurial rather than occasional letting.
- Revenue threshold: The general VAT registration threshold in Italy is €85,000 annually, though short-term rental activities may trigger registration at lower levels.
- Service provision: Offering additional services like breakfast, tours, or transport services typically requires VAT registration regardless of property count.
- Business classification: If tax authorities classify your activity as habitual business rather than occasional letting, VAT registration becomes mandatory.
- Cross-border activities: EU cross-border rental services may trigger VAT obligations under specific circumstances.
Are you aware that without "cedolare secca," Airbnb income faces marginal tax rates up to 26% or higher?
Choosing ordinary income taxation instead of cedolare secca can result in significantly higher effective tax rates depending on your total annual income.
Italian progressive income tax rates range from 23% to 43% on different income brackets, plus regional and municipal surcharges averaging 2.5%. High earners can face combined marginal rates exceeding 45% on rental income.
However, ordinary taxation allows you to deduct legitimate rental expenses such as property maintenance, utilities, platform fees, and renovation costs. These deductions can substantially reduce your taxable rental income and may justify higher tax rates for some investors.
The choice between cedolare secca and ordinary taxation should consider your total income level, available deductions, and administrative complexity preferences. Professional tax advice becomes essential for optimizing your tax strategy based on your specific financial situation.
It's something we develop in our Italy property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Italy's Airbnb tax structure is essential for successful property investment in the Italian market.
The key decision factors include property count, residency status, and whether you qualify for the simplified cedolare secca flat tax system versus ordinary progressive taxation.
It's something we develop in our Italy property pack.
Sources
- Airbnb Help Center - Italy Income Tax Withholding Overview
- Studio Legale Metta - Italian Airbnb Tax Guide
- Your Overseas Home - Italy Property Rental Rules 2025
- ANBBA - Cedolare Secca Guide 2025
- European Commission - DAC7 Directive
- Agenzia delle Entrate - DAC7 Platform Operators
- Taxually - Italy VAT Guide 2025
- CleanBnB - Short-Term Rental Taxation Guide
-Italy Renovation Bonuses and Incentives: What Exists for Property Investors
-Italy Property Taxes for Second Homes: Complete Guide for Foreign Investors
-Italy Rent-to-Buy: How It Works for Foreign Property Buyers
-Italy Real Estate: Do Cities or Countryside Properties Hold Value Better