Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Milan's property market is included in our pack
Milan is one of Italy's strongest rental markets, attracting students, professionals, and expats from around the world.
If you're a foreigner thinking about buying a property in Milan to rent it out, you're probably wondering what the rules are, what returns you can expect, and whether it's actually worth it.
We constantly update this blog post with fresh data and regulatory changes to help you make informed decisions.
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 Milan.
Insights
- Milan's citywide gross rental yield sits around 4.8% to 5.5% in early 2026, but net yields after taxes and costs typically drop to 2.5% to 3.6% for long-term rentals.
- Non-EU foreigners can buy property in Milan, but notaries check a "reciprocity" condition to verify that Italians can purchase property in the buyer's home country.
- Short-term rentals in Milan require both a regional CIR code and a national CIN code, and listings must display these identification numbers or face penalties.
- Milan has nearly 30,000 active short-term rental listings with supply growing about 8% year-over-year, making it a competitive market where location and quality matter.
- The average short-term rental occupancy in Milan hovers around 58%, which is typical for a major European city with tourism seasonality.
- Neighborhoods like NoLo, Bovisa, and Bicocca often deliver better yields than central areas because purchase prices are lower while rents remain solid thanks to metro connections.
- Furnished apartments rent significantly faster in Milan, especially to students, young professionals, and expats on work assignments who value move-in convenience.
- If you opt for the cedolare secca flat tax on long-term rentals in Milan, you give up the right to increase rent during the lease, including inflation adjustments.
- Italian law caps security deposits at three months' rent, which is lower than what landlords can require in many other European countries.
Can I legally rent out a property in Milan as a foreigner right now?
Can a foreigner own-and-rent a residential property in Milan in 2026?
As of early 2026, foreigners can legally own a residential property in Milan and rent it out, as long as they follow Italy's ownership eligibility rules and landlord tax compliance requirements.
The most common ownership structure for foreign individuals buying rental property in Milan is direct personal ownership, though some investors use Italian limited companies for larger portfolios or liability reasons.
For non-EU citizens specifically, the main hurdle is the "reciprocity" check at purchase time, where a notary verifies whether Italians can buy property under similar conditions in the buyer's home country.
If you're not a local, you might want to read our guide to foreign property ownership in Milan.
Do I need residency to rent out in Milan right now?
You do not need Italian residency to rent out a Milan apartment in 2026, but you do need certain administrative and tax credentials to operate legally.
In practice, you will need a codice fiscale (Italian tax identification number), which foreigners can obtain through the Italian tax authority even without being residents.
A local Italian bank account is not strictly required since tenants can pay rent to any EU or SEPA bank account, though having an Italian account can simplify paying local taxes and fees.
Many non-resident owners successfully manage Milan rentals remotely by working with a local property manager and a commercialista (tax advisor) who handles filings and compliance on their behalf.
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What rental strategy makes the most money in Milan in 2026?
Is long-term renting more profitable than short-term in Milan in 2026?
As of early 2026, which strategy is more profitable in Milan depends heavily on your risk tolerance and willingness to manage operations, because short-term rentals offer higher potential revenue but come with more costs and compliance burdens.
A well-managed long-term rental in Milan might generate around 15,000 to 20,000 euros per year net on a typical one-bedroom apartment, while a well-managed short-term rental in the same property could generate 18,000 to 28,000 euros gross before deducting cleaning, platform fees, and higher turnover costs.
Short-term renting tends to outperform long-term financially in Milan when properties are located within walking distance of metro stations in tourist-friendly neighborhoods like Navigli, Duomo, or Porta Venezia, and when the owner invests in quality interiors and professional management.
What's the average gross rental yield in Milan in 2026?
As of early 2026, the average gross rental yield for residential properties in Milan sits around 4.8% to 5.3%, based on current asking rents and sale prices.
Most residential properties in Milan fall within a gross yield range of 4.0% to 6.0%, with the lower end in premium central neighborhoods and the higher end in well-connected outer areas.
Studios and small one-bedroom apartments typically achieve the highest gross yields in Milan because they command relatively higher rent per square meter while their purchase prices remain more accessible than larger units.
By the way, we have much more granular data about rental yields in our property pack about Milan.
What's the realistic net rental yield after costs in Milan in 2026?
As of early 2026, the average net rental yield after all costs for long-term residential rentals in Milan typically falls between 2.5% and 3.6%.
Most landlords in Milan realistically experience net yields ranging from 2.0% on the low end in expensive central buildings to around 4.0% in well-located outer neighborhoods with lower purchase prices and reasonable condo fees.
The three main cost categories that eat into gross yields in Milan are IMU property tax (which is substantial for non-primary residences), condominio building charges (especially in older elevator buildings with concierge services), and the cedolare secca income tax at 21% on rental income.
You might want to check our latest analysis about gross and net rental yields in Milan.
What monthly rent can I get in Milan in 2026?
As of early 2026, typical monthly rents in Milan are around 900 to 1,100 euros (950 to 1,150 USD) for a studio, 1,200 to 1,500 euros (1,260 to 1,575 USD) for a one-bedroom, and 1,800 to 2,200 euros (1,890 to 2,310 USD) for a two-bedroom apartment.
A decent entry-level studio in Milan rents for about 850 to 1,000 euros per month (890 to 1,050 USD), though prices vary significantly depending on neighborhood and metro access.
A typical mid-range one-bedroom apartment in Milan commands around 1,100 to 1,700 euros per month (1,155 to 1,785 USD), with the higher end for renovated units near metro stations in popular neighborhoods.
A standard two-bedroom apartment in Milan rents for approximately 1,600 to 2,600 euros per month (1,680 to 2,730 USD), with premium locations like Porta Nuova or CityLife pushing above this range.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Milan.
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 Milan in 2026?
What's the total "all-in" monthly cost to hold a rental in Milan in 2026?
As of early 2026, the total all-in monthly cost to hold and maintain a typical rental property in Milan ranges from about 300 to 550 euros (315 to 580 USD), not including any mortgage payments.
Most standard rental apartments in Milan have holding costs between 250 euros on the low end for simple buildings without concierge and 650 euros or more (260 to 680 USD) for newer developments with amenities like CityLife or Porta Nuova.
The largest single contributor to monthly holding costs in Milan is usually the IMU property tax, which can run 150 to 400 euros per month when annualized, because Milan applies relatively high rates to non-primary residences.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Milan.
What's the typical vacancy rate in Milan in 2026?
As of early 2026, the typical vacancy rate for long-term rentals in Milan is estimated at around 4% to 7% annually, which translates to roughly half a month to one month of lost rent per year.
Landlords in Milan should realistically budget for about 0.5 to 1.0 months of vacancy per year because tenant turnover, even in this high-demand market, creates gaps between leases that add up over time.
The main factor causing vacancy rates to vary across Milan neighborhoods is metro connectivity, with areas within five minutes' walk of M1, M2, or M3 stations experiencing faster tenant placement than less accessible locations.
Tenant turnover in Milan tends to peak in late summer (August and September) when students and young professionals relocate before the academic and work year begins, creating both more vacancies and more demand simultaneously.
We have a whole part covering the best rental strategies in our pack about buying a property in Milan.
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Where do rentals perform best in Milan in 2026?
Which neighborhoods have the highest long-term demand in Milan in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Milan are Porta Romana, Isola, and Navigli, thanks to their combination of metro access, lifestyle appeal, and diverse tenant pools.
Families looking for long-term rentals in Milan gravitate toward Pagano, Wagner, CityLife, and Magenta, where they find larger apartments, good schools, parks, and a quieter residential atmosphere.
Students drive strong rental demand in Citta Studi near Politecnico, Bovisa near the second Politecnico campus, and Bicocca near the University of Milano-Bicocca, all of which offer affordable rents and direct metro or train connections.
Expats and international professionals tend to concentrate in Brera, Porta Nuova, Garibaldi, and Porta Venezia, where they find premium housing stock, walkable streets, English-friendly services, and proximity to business districts.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Milan.
Which neighborhoods have the best yield in Milan in 2026?
As of early 2026, the three neighborhoods with the best rental yields in Milan are NoLo (North of Loreto), Bovisa, and Bicocca, where purchase prices remain affordable while rents stay solid thanks to excellent transit links.
These top-yielding Milan neighborhoods typically deliver gross rental yields in the 5.5% to 6.5% range, compared to 4.0% to 4.5% in premium central areas like Brera or Centro Storico.
The main characteristic that allows these neighborhoods to achieve higher yields is that they sit along major metro lines and attract steady demand from students and young professionals, but property prices have not yet caught up with the more established central districts.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Milan.
Where do tenants pay the highest rents in Milan in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Milan are Centro Storico, Brera, and Porta Nuova, with average asking rents often exceeding 25 to 30 euros per square meter monthly.
A standard one-bedroom apartment in these premium Milan neighborhoods typically rents for 1,800 to 2,800 euros per month (1,890 to 2,940 USD), while two-bedrooms can easily exceed 3,000 euros (3,150 USD).
What makes these neighborhoods command the highest rents in Milan is their combination of historic architecture or modern luxury towers, direct walking access to fashion districts and corporate headquarters, and the prestige factor that attracts high-income tenants.
The typical tenant profile in these highest-rent Milan neighborhoods includes senior executives at multinational companies, fashion industry professionals, wealthy international students, and affluent couples without children who prioritize location over space.
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 Milan in 2026?
What features increase rent the most in Milan in 2026?
As of early 2026, the three property features that increase monthly rent the most in Milan are walking-distance metro access (especially M1, M2, or M3 lines), air conditioning, and an elevator in buildings of four floors or more.
Metro access within a five-minute walk can add a 10% to 15% rent premium in Milan, making it the single most valuable location feature because the city's traffic and parking challenges make public transit essential for most tenants.
One commonly overrated feature that Milan landlords invest in but tenants do not pay much extra for is high-end designer kitchens, because most renters prioritize functional appliances and layout over luxury finishes they will not own.
One affordable upgrade that provides a strong return on investment for Milan landlords is installing split-system air conditioning units, which typically cost 1,500 to 3,000 euros but can justify 50 to 100 euros more in monthly rent and significantly reduce summer vacancy.
Do furnished rentals rent faster in Milan in 2026?
As of early 2026, furnished apartments in Milan typically rent about two to four weeks faster than unfurnished ones, especially in neighborhoods popular with students, young professionals, and expats who want to move in immediately.
Furnished rentals in Milan generally command a rent premium of 10% to 20% over comparable unfurnished units, though this premium is highest for smaller apartments where tenants most value the convenience of not buying furniture for a potentially short stay.
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How regulated is long-term renting in Milan right now?
Can I freely set rent prices in Milan right now?
In Milan, landlords using a standard "canone libero" contract can freely set the initial rent price at whatever the market will bear, with no government-imposed ceiling on starting rents.
However, if you opt for the cedolare secca flat tax in Milan, you give up the right to increase rent during the lease term, including inflation-linked adjustments, while landlords not using cedolare secca can include ISTAT index clauses that allow small annual increases.
What's the standard lease length in Milan right now?
The most common lease formats for residential rentals in Milan are the 4+4 contract (four years with automatic renewal for another four) and the 3+2 "canone concordato" contract (three years plus two), both established under Italian national law.
Italian law caps the security deposit at a maximum of three months' rent, so in Milan a typical deposit for a 1,500 euro per month apartment would be 4,500 euros (about 4,725 USD).
At the end of a tenancy in Milan, the landlord must return the security deposit within a reasonable timeframe (typically interpreted as a few months), minus any documented deductions for unpaid rent, damages beyond normal wear, or outstanding utility bills.
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 Milan in 2026?
Is Airbnb legal in Milan right now?
Airbnb-style short-term rentals are legal in Milan, but they require compliance with both regional and national registration systems that have become mandatory over the past year.
To operate a short-term rental in Milan, you must first obtain a regional CIR code from Lombardy, then apply for the national CIN code through the Ministry of Tourism's online portal, and both codes must be displayed in all listings and guest communications.
As of early 2026, Milan does not impose a strict annual night cap like some other European cities, but the main constraint is the registration and display requirements plus any restrictions that individual condominium buildings may impose privately.
The most common penalty for operating a non-compliant short-term rental in Milan is an administrative fine, which can range from several hundred to several thousand euros depending on the violation, plus potential removal of listings from platforms that verify compliance.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Milan.
What's the average short-term occupancy in Milan in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Milan is approximately 58%, which is typical for a major European city with tourism seasonality.
Most short-term rentals in Milan experience occupancy rates ranging from about 45% on the low end for poorly located or lower-quality listings to around 70% to 75% for well-managed properties in prime tourist areas.
The highest occupancy months for Milan short-term rentals are typically April through June and September through November, when the city hosts major fashion weeks, design fairs, and business conferences.
The lowest occupancy months for Milan short-term rentals are usually January, February, and August, when business travel drops and many Italians leave the city for summer holidays.
Finally, please note that you can find much more granular data about this topic in our property pack about Milan.
What's the average nightly rate in Milan in 2026?
As of early 2026, the average nightly rate for short-term rentals in Milan is approximately 145 euros (about 150 USD), though this varies significantly by property type, location, and season.
Most short-term rental listings in Milan fall within a nightly rate range of 80 to 250 euros (85 to 260 USD), with budget studios near transit at the low end and premium apartments in Centro Storico or Porta Nuova at the high end.
The typical nightly rate difference between peak season (fashion weeks, Salone del Mobile) and off-season (January, August) in Milan can be 40 to 80 euros per night (40 to 85 USD), with savvy hosts adjusting prices dynamically to capture demand spikes.
Is short-term rental supply saturated in Milan in 2026?
As of early 2026, Milan's short-term rental market is competitive and relatively saturated, with nearly 30,000 active listings creating meaningful competition for guest bookings.
The number of active short-term rental listings in Milan is growing at about 8% year-over-year, which means supply continues to increase even as the market matures.
The most oversaturated neighborhoods for short-term rentals in Milan are Centro Storico, Duomo, and Navigli, where listing density is highest and new entrants must compete aggressively on price, photos, and reviews to stand out.
Neighborhoods that still have room for new short-term rental supply in Milan include Bovisa, Bicocca, and parts of Porta Romana, where demand from visiting academics, business travelers, and event attendees remains underserved by quality listings.
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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 Milan, 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 |
|---|---|---|
| Normattiva (Law 431/1998) | It's Italy's official consolidated law database published by the State. | We used it to describe standard lease structures like 4+4 and 3+2 contracts. We cross-checked all rental regulation claims against this primary legal source. |
| Agenzia delle Entrate (Cedolare Secca) | It's the Italian tax authority's official guidance on rental taxation. | We used it to explain the flat-tax option and its rent-freeze implications. We anchored net yield calculations on this tax framework. |
| Idealista (Milan Rent Index) | It's one of Italy's largest property portals with transparent methodology. | We used it to estimate typical rents per square meter in Milan. We converted these figures into monthly rent ranges by apartment size. |
| Idealista (Milan Sale Price Index) | It's a widely-referenced listing-based price index for Italian cities. | We used it to calculate gross rental yields for Milan. We combined sale prices with rent data for yield computations. |
| Immobiliare.it (Milan Market) | It's Italy's largest property portal with long-term market data. | We used it as a second independent check on Milan property prices. We triangulated price levels to avoid relying on a single index. |
| AirDNA (Milan STR Data) | It's a respected short-term rental analytics provider used by investors. | We used it to estimate occupancy, nightly rates, and listing counts. We compared short-term versus long-term economics using these metrics. |
| Ministry of Finance (Milan IMU Rates) | It's the official government portal hosting municipal tax rate documents. | We used it to anchor property tax estimates for Milan. We incorporated IMU into monthly holding cost calculations. |
| Comune di Milano (TARI Info) | It's the City of Milan's official page explaining waste tax rules. | We used it to include TARI as a real recurring landlord cost. We structured all-in monthly cost estimates with this tax included. |
| Regione Lombardia (CIN Guidance) | It's the regional authority explaining short-term rental compliance. | We used it to clarify the CIR-then-CIN sequence for Milan hosts. We tailored short-term rental compliance advice to Lombardy specifically. |
| Ministero del Turismo (CIN Launch) | It's the national ministry's official announcement of the CIN system. | We used it to confirm when CIN became mandatory and compliance deadlines. We explained what hosts must display in listings based on this source. |
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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