Authored by the expert who managed and guided the team behind the Italy Property Pack
Everything you need to know before buying real estate is included in our Italy Property Pack
Yes, foreigners can legally rent out residential property in Italy in 2026, and Italy is actually one of the more accessible European markets for non-resident landlords.
Whether you choose long-term tenants or short-term tourists, the key is understanding Italy's specific compliance requirements, tax regimes, and the significant variation between cities like Milan, Rome, and Florence.
We constantly update this blog post to reflect the latest regulations, tax changes, and market data for Italy's rental market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Italy.
Insights
- Italy's gross rental yields average around 7% nationally, but the spread ranges from under 3% in Milan's prime center to over 8% in student-heavy neighborhoods of Bologna and Turin.
- Short-term rentals in Rome achieve roughly 63% occupancy with nightly rates around €185, but operating costs eat 35% to 55% of gross revenue compared to just 20% to 35% for long-term rentals.
- The new CIN (National Identification Code) system is now mandatory for all short-term rentals in Italy, and platforms like Airbnb will remove listings that do not display it.
- Italy's cedolare secca flat tax lets landlords pay just 21% on rental income for their first property, but this rises to 26% from the second property and triggers business registration requirements from the third.
- Vacancy rates in Milan and central Rome run as low as 1% to 3%, while secondary southern towns can see 6% to 8%, making location the single biggest factor in your cash flow stability.
- Furnished rentals in Italy command a 10% to 20% rent premium and rent faster, but only in cities with strong expat, student, or professional tenant pools like Milan, Rome, and Bologna.
- Florence banned new short-term rental registrations in its UNESCO-protected historic center in 2025, signaling a regulatory trend that other Italian cities may follow.
- Security deposits in Italy are legally capped at three months' rent, and landlords must return them within a reasonable period after the lease ends, typically deducting only documented damages.
Can I legally rent out a property in Italy as a foreigner right now?
Can a foreigner own-and-rent a residential property in Italy in 2026?
As of early 2026, foreigners from most countries can legally own residential property in Italy and rent it out without any nationality-based restrictions, as long as they comply with local tax and contract registration rules.
The most common ownership structure for foreign individuals buying Italian rental property is direct personal ownership, though some investors use Italian companies (SRL) or foreign holding structures for larger portfolios or liability reasons.
However, non-EU buyers should be aware of the "condition of reciprocity," which means your home country must grant Italians the same property rights you want to exercise in Italy, though this check is waived if you hold a valid Italian residence permit.
If you're not a local, you might want to read our guide to foreign property ownership in Italy.
Do I need residency to rent out in Italy right now?
No, you do not need to be an Italian resident to own and rent out a property in Italy, and many foreign landlords manage their Italian rentals entirely from abroad using local property managers or platforms like Airbnb.
That said, you will absolutely need an Italian codice fiscale (tax identification number) before you can legally collect rent, register contracts, or pay taxes in Italy.
While Italian law does not strictly require a local bank account to receive rent, having one makes life significantly easier for paying condo fees, utilities, property taxes, and receiving tenant payments without international transfer delays.
Managing a rental property remotely in Italy is practically feasible, especially for short-term rentals where platforms handle bookings and payments, though you will likely need a local contact for check-ins, maintenance emergencies, and regulatory filings.
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What rental strategy makes the most money in Italy in 2026?
Is long-term renting more profitable than short-term in Italy in 2026?
As of early 2026, short-term renting can generate 30% to 50% more gross income than long-term renting in Italy's top tourist cities like Rome, Venice, and Florence, but the higher operating costs and regulatory burden often narrow the net gap significantly.
For a typical one-bedroom apartment in central Rome, a well-managed long-term rental might bring in around €12,000 to €15,000 per year (about $13,000 to $16,000 or €12,000 to €15,000), while a comparable short-term rental could gross €18,000 to €25,000 (about $19,500 to $27,000 or €18,000 to €25,000) before expenses.
Short-term renting tends to outperform financially in properties located within walking distance of major tourist attractions, train stations, or in cities with strong year-round visitor demand like Rome, Milan, and Florence.
What's the average gross rental yield in Italy in 2026?
As of early 2026, the average gross rental yield for residential properties in Italy sits around 7% to 8% based on asking rents and prices, though actual achieved yields after negotiation and vacancy typically fall closer to 5.5% to 6.5%.
Across Italy, realistic gross yields range from about 3% to 4% in prime Milan or Rome neighborhoods up to 8% to 10% in student-heavy areas of Bologna, Turin, or smaller southern cities where purchase prices are lower relative to rents.
Studios and small one-bedroom apartments tend to achieve the highest gross yields in Italy because they attract the largest tenant pools (students, young professionals, expats) and have lower purchase prices per square meter than larger family units.
By the way, we have much more granular data about rental yields in our property pack about Italy.
What's the realistic net rental yield after costs in Italy in 2026?
As of early 2026, realistic net rental yields in Italy after all holding costs (but before financing) typically land between 2.8% and 5%, depending heavily on the city, property condition, and whether you self-manage or use an agency.
Most landlords in Italy experience net yields in a range from about 2.5% in expensive central Milan locations to 5% or slightly higher in well-chosen student or secondary city markets with lower purchase prices.
The three biggest cost categories that erode gross yield in Italy specifically are IMU property tax (which varies by municipality and cadastral value, often €500 to €2,000 per year), condo fees for apartment buildings (€60 to €200 per month), and the cedolare secca income tax at 21% for your first property.
You might want to check our latest analysis about gross and net rental yields in Italy.
What monthly rent can I get in Italy in 2026?
As of early 2026, typical monthly rents in Italy average around €425 (about $460 or €425) for a studio, €710 (about $770 or €710) for a one-bedroom, and €1,065 (about $1,150 or €1,065) for a two-bedroom apartment at the national level.
For a decent studio in Italy, realistic entry-level rents start around €350 to €500 per month (about $380 to $540 or €350 to €500) in smaller cities and peripheral neighborhoods of larger ones.
A typical one-bedroom apartment in a mid-range Italian neighborhood rents for approximately €600 to €900 per month (about $650 to $975 or €600 to €900), with Milan and Rome commanding the higher end of this range.
For a standard two-bedroom apartment, expect mid-to-high rents of €900 to €1,400 per month (about $975 to $1,500 or €900 to €1,400) in most Italian cities, rising to €1,800 or more in prime Milan or central Rome locations.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Italy.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Italy versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Italy in 2026?
What's the total "all-in" monthly cost to hold a rental in Italy in 2026?
As of early 2026, the total monthly cost to hold a typical rental property in Italy runs between €200 and €450 (about $215 to $490 or €200 to €450) for a long-term rental, and €350 to €600 (about $380 to $650 or €350 to €600) for a short-term rental before income tax.
For most standard rental apartments in Italy, expect monthly holding costs in a range from €150 (about $165 or €150) for a simple property with low condo fees up to €500 or more (about $540 or €500) for a furnished short-term rental with full management.
In Italy specifically, the single largest contributor to monthly holding costs is often IMU property tax (for non-primary residences), which can range from €50 to €200 per month when averaged, followed closely by condo fees in apartment buildings.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Italy.
What's the typical vacancy rate in Italy in 2026?
As of early 2026, Italy's typical long-term rental vacancy rate sits around 4% nationally, but this masks huge variation from under 2% in Milan and central Rome to 6% to 8% in smaller southern towns.
A realistic planning assumption for landlords in Italy is to budget for about one month of vacancy per year (8%) in strong urban markets, extending to 1.5 to 2.5 months (12% to 20%) in average or peripheral areas.
The main factor driving vacancy differences across Italian neighborhoods is proximity to employment hubs, universities, and public transit, as tenants in Italy strongly prioritize commute times and metro access.
In Italy, the highest tenant turnover typically occurs between June and September when students leave and professionals relocate, making summer the riskiest period for vacancy if your lease ends during these months.
We have a whole part covering the best rental strategies in our pack about buying a property in Italy.
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Where do rentals perform best in Italy in 2026?
Which neighborhoods have the highest long-term demand in Italy in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Italy are Porta Romana and Isola in Milan, Prati in Rome, and the Centro Storico area of Bologna, all driven by strong job markets and excellent transit.
For families seeking stability and good schools in Italy, the strongest rental demand concentrates in Milan's CityLife and Porta Romana districts, Rome's Monteverde and EUR neighborhoods, and Bologna's Saragozza area.
Student rental demand in Italy is highest in Milan's Città Studi and Bicocca areas, Rome's San Lorenzo neighborhood, Bologna's San Donato and Via Zamboni zones, and Turin's Vanchiglia district near the universities.
Expats and international professionals in Italy tend to cluster in Milan's Porta Nuova and Brera areas, Rome's Prati and Parioli neighborhoods, and Florence's Oltrarno district, where furnished rentals and English-speaking services are more available.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Italy.
Which neighborhoods have the best yield in Italy in 2026?
As of early 2026, the top three neighborhoods for rental yield in Italy are NoLo (North of Loreto) in Milan, San Lorenzo in Rome, and San Donato in Bologna, all offering strong tenant demand with purchase prices well below prime city centers.
These top-yielding Italian neighborhoods typically deliver gross rental yields in the range of 6% to 8%, compared to 3% to 4% in the most expensive central districts of the same cities.
What allows these neighborhoods to achieve higher yields is their combination of good metro or tram access, strong student or young professional populations, and older building stock that keeps purchase prices affordable while rents stay competitive.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Italy.
Where do tenants pay the highest rents in Italy in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Italy are Milan's Brera and Porta Nuova (€25 to €30 per square meter, about $27 to $32 or €25 to €30), Rome's Parioli (€23 to €28 per square meter, about $25 to $30 or €23 to €28), and Florence's Centro Storico (€22 to €27 per square meter, about $24 to $29 or €22 to €27).
In these premium Italian neighborhoods, a standard one-bedroom apartment typically rents for €1,400 to €2,200 per month (about $1,500 to $2,400 or €1,400 to €2,200), with penthouses and renovated units exceeding €3,000.
These neighborhoods command the highest rents because they combine historic prestige, walkability to high-end retail and dining, and proximity to major corporate headquarters or embassies that attract tenants with large housing budgets.
The typical tenant profile in these top-rent Italian neighborhoods includes senior executives at multinational companies, diplomats, successful entrepreneurs, and wealthy international families who prioritize location and quality over value.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Italy. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Italy in 2026?
What features increase rent the most in Italy in 2026?
As of early 2026, the top three features that increase monthly rent the most in Italy are air conditioning (adds €30 to €70 per month), elevator access in older buildings (adds €50 to €100 per month), and metro proximity within a 10-minute walk (adds €50 to €100 per month).
The single most valuable feature in Italy is metro or train station proximity, which can add a 10% to 15% rent premium because Italian tenants heavily prioritize commute efficiency over almost any interior upgrade.
One commonly overrated feature that Italian landlords invest in but tenants do not pay much extra for is luxury bathroom finishes, as tenants care more about functional, clean bathrooms than designer tiles or premium fixtures.
An affordable upgrade that delivers strong return on investment for landlords in Italy is installing a split-system air conditioner (costing €1,000 to €2,000), which can add €30 to €70 per month in rent and dramatically speeds up leasing during summer months.
Do furnished rentals rent faster in Italy in 2026?
As of early 2026, furnished apartments in Italy typically rent 2 to 4 weeks faster than unfurnished ones in cities with strong expat, student, or relocating professional populations like Milan, Rome, and Bologna.
Furnished rentals in Italy command a rent premium of approximately 10% to 20% over comparable unfurnished units, though this premium is highest in central locations and nearly disappears in family-oriented suburban areas where tenants prefer to bring their own furniture.
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How regulated is long-term renting in Italy right now?
Can I freely set rent prices in Italy right now?
In Italy, landlords using the "canone libero" (free rent) contract structure can freely negotiate and set initial rent prices with tenants without any government cap or ceiling.
However, if you choose the "canone concordato" (agreed rent) structure to access certain tax benefits, rent increases during the tenancy are tied to local agreements, and even under free contracts, mid-lease increases are typically limited to annual inflation adjustments (ISTAT index) as specified in the contract.
What's the standard lease length in Italy right now?
The standard long-term lease in Italy is the 4+4 contract (four years, automatically renewable for another four), though the 3+2 format is common in cities where "canone concordato" agreed-rent agreements exist.
Italian law caps the security deposit at a maximum of three months' rent (roughly €1,500 to €4,000 or about $1,600 to $4,300 depending on the property), and landlords cannot legally require more regardless of what market practice might suggest.
At the end of a tenancy in Italy, landlords must return the security deposit within a reasonable period (typically 30 to 60 days), and they can only deduct amounts for documented damages or unpaid bills, not for normal wear and tear.
We made this infographic to show you how property prices in Italy compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Italy in 2026?
Is Airbnb legal in Italy right now?
Yes, Airbnb-style short-term renting is legal in Italy in 2026, but the regulatory framework has tightened significantly with national registration requirements, safety standards, and stricter local rules in major tourist cities.
All short-term rental hosts in Italy must obtain a CIN (Codice Identificativo Nazionale) through the Ministry of Tourism's BDSR database, and this code must be displayed on all online listings and physically at the property entrance.
Italy does not have a single national cap on rental nights, but cities like Florence have banned new short-term rental registrations in historic centers, and Venice imposes annual limits in certain zones, so local rules vary significantly.
The most common penalty for operating a non-compliant short-term rental in Italy is administrative fines ranging from €800 to €8,000, and platforms like Airbnb may remove listings that do not display the required CIN code.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Italy.
What's the average short-term occupancy in Italy in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Italy ranges from about 55% to 65% in major cities, with Rome at approximately 63%, Milan at 58%, and Venice at 56%.
Across Italy, realistic short-term rental occupancy spans from about 45% for poorly located or managed listings up to 75% or higher for well-optimized properties in prime tourist locations with strong reviews.
The highest occupancy months for short-term rentals in Italy are typically April through October, with peaks during Easter, summer holidays (July and August), and major events like Milan Fashion Week or the Venice Film Festival.
The lowest occupancy months in Italy are January through February and November (excluding holiday weekends), when tourist arrivals drop significantly and only business travel sustains demand in cities like Milan.
Finally, please note that you can find much more granular data about this topic in our property pack about Italy.
What's the average nightly rate in Italy in 2026?
As of early 2026, the average nightly rate for short-term rentals in Italy ranges from about €130 to €200 (about $140 to $215 or €130 to €200) in major cities, with Rome averaging around €185, Milan around €140, and Venice around €210.
Across Italy, realistic nightly rates span from about €60 to €80 (about $65 to $87 or €60 to €80) for basic listings in secondary cities up to €250 to €400 (about $270 to $430 or €250 to €400) for premium properties in top tourist locations.
The typical nightly rate difference between peak season (summer and holidays) and off-season (winter) in Italy is roughly €40 to €80 (about $43 to $87 or €40 to €80) per night, with some Florence and Venice listings seeing even larger swings.
Is short-term rental supply saturated in Italy in 2026?
As of early 2026, the short-term rental market is clearly saturated in the historic centers of Rome, Florence, and Venice, where tens of thousands of active listings compete for a limited pool of tourist bookings.
The trend in active short-term rental listings across Italy is generally stable to slightly declining in regulated historic centers, but still growing in peripheral neighborhoods and secondary cities where restrictions are lighter.
The most oversaturated neighborhoods in Italy are Florence's Centro Storico (now closed to new registrations), Venice's San Marco and Dorsoduro districts, and Rome's Trastevere and Centro areas, where competition keeps occupancy and pricing under pressure.
Neighborhoods in Italy that still have room for new short-term rental supply include emerging areas outside historic cores, such as Rome's Ostiense and Testaccio, Milan's NoLo and Porta Romana fringes, and smaller cities like Bologna and Turin with growing tourist interest.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Italy, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Agenzia delle Entrate | Italy's national tax agency providing official guidance on property taxes and rental compliance. | We used it to verify codice fiscale requirements and cedolare secca tax rates. We also relied on their RLI system documentation for lease registration procedures. |
| Ministry of Tourism (BDSR) | The official government database for short-term rental registration and CIN codes. | We used it to explain mandatory short-term rental compliance requirements. We also tracked their guidance on display and registration obligations. |
| Immobiliare.it | Italy's largest property portal publishing consistent rent and price indices from listing data. | We used it to compute yield estimates and benchmark monthly rents. We also relied on their market index for Italy-wide price trends. |
| AirDNA | A leading short-term rental data provider covering Airbnb and Vrbo listings at scale. | We used it to estimate occupancy rates and average daily rates for Rome, Milan, and Venice. We also assessed market saturation using their active listing counts. |
| Banca d'Italia | Italy's central bank publishing recurring housing market surveys with transparent methodology. | We used it to contextualize demand trends and vacancy rates. We also drew on their survey data for market temperature indicators. |
| Normattiva | The official repository of Italian legislation in force. | We used it to verify lease law requirements and security deposit caps. We also referenced it for short-term rental legal definitions. |
| Global Property Guide | An independent property research firm tracking rental yields across 80+ countries. | We used it to validate our gross yield estimates against their biannual survey. We also compared their city-level data with our calculations. |
| Idealista | A major European property portal with detailed Italian rental market data. | We used it to cross-check rent levels and listing velocity. We also validated neighborhood demand patterns using their market reports. |
| Airbnb Help Center (Italy) | Official platform guidance for hosts operating in Italy. | We used it to verify CIN compliance requirements for listings. We also referenced their tax withholding explanations for hosts. |
| Cushman & Wakefield | A global real estate advisory firm publishing professional market outlooks. | We used it for institutional-grade rent growth forecasts. We also referenced their yield compression projections for prime Italian markets. |
We have made this infographic to give you a quick and clear snapshot of the property market in Italy. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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