Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Sicily's property market is included in our pack
If you own property in Sicily or plan to buy one, renting it out can be a smart way to generate income, but there are rules and realities you need to understand first.
This guide covers everything from legal requirements to realistic yields, vacancy rates, and neighborhood performance across Sicily in 2026.
We constantly update this blog post to reflect the latest regulations, market data, and rental trends in Sicily.
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 Sicily.
Insights
- Sicily's gross rental yields range from 6.5% to 9%, which is notably higher than northern Italian cities like Milan where yields often sit below 5%.
- Palermo short-term rentals average around 55% annual occupancy, meaning nearly half the year your property may sit empty if you go the Airbnb route.
- Catania delivers roughly 8.8% gross yield compared to Palermo's 7.3%, making it the stronger performer for buy-to-let investors in Sicily right now.
- The standard Italian lease is 4+4 years with automatic renewal, which means evicting a non-paying tenant in Sicily can take years through the court system.
- ISTAT reports 34.9% of dwellings in the Italian Islands are non-occupied, creating structural oversupply that keeps Sicily property prices depressed compared to the mainland.
- A foreign landlord in Sicily needs a codice fiscale (Italian tax ID) to sign contracts, register leases, and file taxes, even without Italian residency.
- Short-term rental hosts must register guests with Italian police within 24 hours via the Alloggiati Web system, which is why most remote owners hire local co-hosts.
- Choosing the cedolare secca flat tax means you cannot raise rent during the lease period, a tradeoff many foreign landlords in Sicily do not realize upfront.
- Centro Storico in Palermo commands rents around 12 euros per square meter, while inland towns can be 30% to 50% lower than city averages.
Can I legally rent out a property in Sicily as a foreigner right now?
Can a foreigner own-and-rent a residential property in Sicily in 2026?
As of early 2026, foreigners can legally own and rent out residential property in Sicily, since Italian law does not restrict foreign ownership of real estate or the right to generate rental income from it.
The most common ownership structure for foreigners holding rental property in Sicily is direct personal ownership, though some investors use Italian limited companies (SRL) for tax planning or liability protection.
The single most common limitation foreigners face is not legal but practical: you need an Italian codice fiscale (tax identification number) to sign contracts, register leases, and interact with banks or the tax authority.
If you're not a local, you might want to read our guide to foreign property ownership in Sicily.
Do I need residency to rent out in Sicily right now?
No, you do not need Italian residency to rent out a property in Sicily, as Italian law allows non-resident foreigners to own and lease real estate without living in the country.
However, you will almost certainly need an Italian codice fiscale (tax identification number) to legally collect rental income, sign lease agreements, and file tax returns in Sicily.
A local Italian bank account is not legally required to collect rent, but it is practically helpful since most tenants pay by bank transfer and an Italian or EU account reduces transaction fees and friction.
Managing a rental property in Sicily entirely remotely is feasible for long-term rentals, but short-term rentals require guest registration with Italian police within 24 hours, which is why most remote owners hire a local property manager or co-host.
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What rental strategy makes the most money in Sicily in 2026?
Is long-term renting more profitable than short-term in Sicily in 2026?
As of early 2026, the more profitable rental strategy in Sicily depends heavily on your property's location, with short-term rentals winning in tourist hotspots like Palermo Centro, Taormina, and Siracusa, while long-term rentals are safer in non-tourist inland areas.
A well-managed short-term rental in a prime Palermo location might gross 12,000 to 18,000 euros per year (around 13,000 to 19,500 USD or 12,400 to 18,600 EUR), compared to 5,500 to 8,500 euros for a similar long-term rental, but the gap shrinks significantly after short-term operating costs.
Properties in Sicily's tourist core, like Centro Storico in Palermo, coastal Cefalù, Ortigia in Siracusa, or the Aeolian Islands, tend to favor short-term renting because they attract visitors willing to pay premium nightly rates during peak season.
What's the average gross rental yield in Sicily in 2026?
As of early 2026, the average gross rental yield for residential properties in Sicily sits around 7% to 8%, with Palermo averaging approximately 7.3% and Catania reaching about 8.8%.
The realistic gross rental yield range that covers most residential properties in Sicily spans from about 6.5% in prime coastal areas with high property prices to around 9% in working-class city neighborhoods with lower purchase prices but solid rental demand.
Smaller apartments, particularly studios and one-bedrooms in central Palermo or Catania near universities and transit, typically achieve the highest gross rental yields in Sicily because their lower purchase prices combined with steady tenant demand create favorable rent-to-price ratios.
By the way, we have much more granular data about rental yields in our property pack about Sicily.
What's the realistic net rental yield after costs in Sicily in 2026?
As of early 2026, the average net rental yield after all costs for residential properties in Sicily falls between 4% and 6.5% for long-term rentals, with well-run short-term rentals potentially reaching 4.5% to 7.5% in favorable locations.
The realistic net yield range most landlords actually experience in Sicily spans from about 3.5% for properties with high vacancy or management costs to around 7% for efficiently run units in high-demand neighborhoods.
The three main cost categories that reduce gross yield to net yield specifically in Sicily are IMU property tax (which hits hard because most foreign owners cannot claim primary residence exemptions), condominium fees for apartment buildings (which often include heating, elevator, and common area maintenance), and the high cost of property management for remote owners who need local help with tenant relations and compliance.
You might want to check our latest analysis about gross and net rental yields in Sicily.
What monthly rent can I get in Sicily in 2026?
As of early 2026, typical monthly rents in Sicily's main cities are around 325 euros (350 USD) for a studio, 465 euros (500 USD) for a one-bedroom, and 700 euros (755 USD) for a two-bedroom apartment in Palermo, with Catania running slightly higher at 335, 480, and 720 euros respectively.
A realistic entry-level monthly rent for a decent studio in Sicily ranges from 250 to 350 euros (270 to 375 USD), with lower rents found in inland towns and higher rents in central Palermo or Catania.
A typical one-bedroom apartment in Sicily commands mid-range monthly rents of 400 to 550 euros (430 to 595 USD), depending on the neighborhood's proximity to universities, transit, and lifestyle amenities.
A typical two-bedroom apartment in Sicily's main cities rents in the mid-to-high range of 600 to 850 euros (650 to 920 USD), with premium areas like Palermo's Centro Storico or Catania's Ognina reaching the upper end of this range.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Sicily.
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 Sicily in 2026?
What's the total "all-in" monthly cost to hold a rental in Sicily in 2026?
As of early 2026, the total all-in monthly cost to hold and maintain a typical rental property in Sicily ranges from 150 to 400 euros (160 to 430 USD) for a long-term rental, rising to 400 to 700 euros (430 to 755 USD) for a short-term rental that includes utilities and cleaning turnover costs.
A realistic monthly cost range that covers most standard rental properties in Sicily spans from about 100 euros for a low-maintenance inland apartment with minimal condo fees to 500 euros or more for a managed short-term rental in Palermo with regular guest turnovers.
The single largest contributor to total monthly holding cost in Sicily is typically the IMU property tax for non-resident owners, which can range from 50 to 200 euros per month equivalent depending on the property's cadastral value and the specific municipality's rates.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Sicily.
What's the typical vacancy rate in Sicily in 2026?
As of early 2026, the typical vacancy rate for rental properties in Sicily ranges from about 8% in high-demand urban neighborhoods to 25% or more in weaker inland markets, with short-term rentals averaging around 45% vacancy when you account for seasonal gaps.
A landlord in Sicily should realistically budget for about one month of vacancy per year in strong Palermo or Catania neighborhoods, increasing to two or three months in less desirable areas, because tenant pools are smaller and turnover takes longer outside major cities.
The main factor causing vacancy rates to vary across Sicily neighborhoods is proximity to employment centers, universities, and public transit, since areas like Palermo's Politeama or Catania's Borgo attract tenants year-round while peripheral zones depend more heavily on seasonal demand.
The highest tenant turnover and vacancy in Sicily typically occurs in September and October when summer short-term rental demand ends and long-term tenants often move for work or university schedules.
We have a whole part covering the best rental strategies in our pack about buying a property in Sicily.
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Where do rentals perform best in Sicily in 2026?
Which neighborhoods have the highest long-term demand in Sicily in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Sicily are Centro Storico and Politeama-Libertà in Palermo, plus Centro Storico and Borgo-Vulcania in Catania, all of which benefit from walkability, services, and strong tenant pools.
Families looking for long-term rentals in Sicily tend to favor Palermo's Libertà-Villabianca-De Gasperi and San Lorenzo-Resuttana neighborhoods, as well as Catania's Ognina-Guardia-Rotolo area, because these zones offer schools, green spaces, and calmer residential streets.
Students in Sicily create strong rental demand in areas near universities, particularly Palermo's Zisa-Calatafimi Bassa-Università zone and Catania's Cibali and Borgo neighborhoods, where affordable rents meet convenient transit access.
Expats and international professionals renting long-term in Sicily gravitate toward Palermo's Centro Storico and Politeama-Libertà for their lifestyle amenities, as well as Catania's Centro Storico-Porto and Ognina-Rotolo for their mix of urban convenience and coastal appeal.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Sicily.
Which neighborhoods have the best yield in Sicily in 2026?
As of early 2026, the top three neighborhoods with the best rental yield in Sicily are Palermo's Calatafimi Bassa-Zisa-Università zone, Catania's Ferrarotto-Palestro-Calcare area, and parts of Catania's Centro Storico-Porto, all of which offer moderate purchase prices combined with solid rental demand.
The estimated gross rental yield range for these top-yielding neighborhoods in Sicily spans from about 8% to 10%, compared to the 6% to 7% yields found in pricier premium zones where high property values compress returns.
The main characteristic that allows these neighborhoods to achieve higher yields than others in Sicily is the "sweet spot" pricing effect, where purchase prices remain low enough (often under 1,200 euros per square meter) while rents stay competitive because tenants value the transit access and proximity to universities or employment centers.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Sicily.
Where do tenants pay the highest rents in Sicily in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in Sicily are Palermo's Centro Storico (around 12 euros per square meter, or roughly 600 to 900 euros monthly for a standard apartment), Mondello-Tommaso Natale-Arenella in Palermo, and Catania's Bellini-Tribunale-Corso Italia area.
A typical monthly rent range for a standard apartment in these premium Sicily neighborhoods spans from 700 to 1,100 euros (755 to 1,190 USD), with larger or renovated units in the best blocks commanding even higher prices.
The main characteristic that makes these neighborhoods command the highest rents in Sicily is their combination of historic architectural appeal, walkable lifestyle amenities, and either direct sea access (Mondello) or cultural vibrancy (Centro Storico), which creates emotional value that tenants are willing to pay premium prices for.
The typical tenant profile in these highest-rent Sicily neighborhoods includes young professionals working in Palermo's or Catania's service sector, affluent retirees seeking historic charm, expats attracted to the lifestyle, and well-funded short-term visitors who convert some units into lucrative vacation rentals.
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 Sicily in 2026?
What features increase rent the most in Sicily in 2026?
As of early 2026, the top three property features that increase monthly rent the most in Sicily are air conditioning (essential for the brutal summer heat), outdoor space like a balcony or terrace (highly valued for Sicilian lifestyle), and modern energy-efficient windows or insulation (which dramatically cuts utility bills in poorly insulated older buildings).
Air conditioning alone can add a rent premium of 10% to 15% in Sicily, particularly in Palermo and Catania where summer temperatures regularly exceed 35°C and tenants will pay significantly more for a cool apartment.
One commonly overrated feature that landlords invest in but tenants do not pay much extra for in Sicily is luxury bathroom finishes, since most renters prioritize functional basics like good water pressure and a working shower over marble countertops or designer fixtures.
One affordable upgrade that provides strong return on investment for landlords in Sicily is installing fiber internet or ensuring high-speed connectivity, as the growing remote work population values reliable internet more than many cosmetic improvements.
Do furnished rentals rent faster in Sicily in 2026?
As of early 2026, furnished apartments in Sicily typically rent 2 to 4 weeks faster than unfurnished units, particularly in areas with strong student, expat, or short-term tenant demand where renters want move-in-ready convenience.
Furnished apartments in Sicily generally command a rent premium of 10% to 20% over unfurnished equivalents, though the premium is highest in central Palermo and Catania where transient tenants dominate and lowest in family-oriented suburban areas where long-term renters often prefer bringing their own furniture.
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How regulated is long-term renting in Sicily right now?
Can I freely set rent prices in Sicily right now?
In Sicily, landlords can freely set initial rent prices under the standard "canone libero" (free market) lease structure, with no government-mandated caps on what you charge when signing a new lease agreement.
However, if you choose the cedolare secca flat tax option in Sicily (which many foreign landlords do for its simplicity), you generally waive the right to increase rent during the lease period, making your initial price decision more consequential since you cannot adjust upward until the lease renews.
What's the standard lease length in Sicily right now?
The standard and most common lease length for residential rentals in Sicily is the "4+4" structure, meaning four years with automatic renewal for another four years unless specific termination conditions are met, as established by Italian national law.
The maximum security deposit a landlord can legally require in Sicily is three months' rent (so roughly 1,000 to 2,100 euros, or 1,080 to 2,270 USD, for a typical apartment), and this deposit must accrue legal interest that belongs to the tenant.
When the tenancy ends in Sicily, the landlord must return the security deposit within a reasonable timeframe (typically interpreted as within one to two months), minus any documented deductions for damages beyond normal wear and tear or unpaid rent.
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 Sicily in 2026?
Is Airbnb legal in Sicily right now?
Yes, Airbnb-style short-term rentals are legal in Sicily, but "legal" means fully compliant with Italian regulations, including registration requirements, guest reporting, and tax obligations.
To operate a short-term rental in Sicily, you need to obtain a national CIN (Codice Identificativo Nazionale) through the Ministry of Tourism's BDSR portal, and you must display this code on all listings and advertisements.
Sicily does not currently impose a uniform annual night limit on short-term rentals at the regional level, but individual municipalities can introduce their own caps, so you must check the specific rules for Palermo, Catania, or wherever your property is located.
The most common penalty for operating a non-compliant short-term rental in Sicily includes fines ranging from several hundred to several thousand euros, plus potential removal from platforms and, in serious cases, tax penalties for unreported income.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Sicily.
What's the average short-term occupancy in Sicily in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Sicily hovers around 40% to 55%, with Palermo averaging approximately 55% according to AirDNA data.
The realistic occupancy range most short-term rentals experience in Sicily spans from about 30% for poorly positioned or managed listings to 70% or higher for well-reviewed properties in prime tourist locations during favorable years.
The highest occupancy rates for short-term rentals in Sicily occur during the summer months from June through September, plus the Easter and Christmas holiday periods, when both domestic and international tourists flood the island.
The lowest occupancy rates in Sicily typically hit during January through March and November, when tourist arrivals drop sharply and many short-term listings sit empty for weeks at a time, which is why some owners switch to mid-term or long-term leases during winter.
Finally, please note that you can find much more granular data about this topic in our property pack about Sicily.
What's the average nightly rate in Sicily in 2026?
As of early 2026, the average nightly rate for short-term rentals in Sicily sits around 100 to 115 euros (108 to 124 USD), with Palermo specifically averaging about 115 USD per night according to AirDNA data.
A realistic nightly rate range that covers most short-term rental listings in Sicily spans from about 50 euros (54 USD) for basic studios in less touristy areas to 200 euros or more (216 USD) for well-appointed apartments in Taormina, Ortigia, or Palermo's Centro Storico.
The typical nightly rate difference between peak season and off-season in Sicily is substantial, with summer rates often 50% to 100% higher than winter rates, meaning a property that commands 150 euros per night in August might only fetch 70 to 80 euros in February.
Is short-term rental supply saturated in Sicily in 2026?
As of early 2026, the short-term rental market in Sicily shows moderate saturation in prime tourist zones, with oversupply becoming noticeable during off-season months when occupancy drops below 40% even in popular areas.
The number of active short-term rental listings in Sicily has been growing steadily, particularly in Palermo and coastal destinations, as more property owners enter the market attracted by the higher gross revenue potential compared to long-term rentals.
The most oversaturated neighborhoods for short-term rentals in Sicily include Palermo's Centro Storico, Taormina's historic center, and Ortigia in Siracusa, where the density of competing listings makes it harder for new entrants to achieve high occupancy without aggressive pricing or exceptional reviews.
Neighborhoods in Sicily that still have room for new short-term rental supply include less-discovered areas like Palermo's Zisa or Arenella-Vergine Maria, parts of Catania's Centro Storico away from the main tourist circuit, and smaller coastal towns between major destinations where tourists seek authentic local experiences.
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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 Sicily, 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 (Cedolare Secca) | Italy's official tax authority explaining the flat-tax option for residential leases. | We used it to confirm who can opt into cedolare secca and why choosing it affects rent increases. We used it to explain practical implications for foreign landlords in Sicily. |
| Normattiva (Legge 431/1998) | The official portal for Italy's laws covering residential lease structures. | We used it to ground the 4+4 lease length discussion in primary legal text. We used it to avoid relying on blog summaries for tenant-landlord basics. |
| Immobiliare.it (Palermo) | One of Italy's biggest property portals with city-level price series and methodology notes. | We used it to estimate early-2026 rents and prices in Palermo from December 2025 data. We used it to compute realistic gross yields from rent and sale price per square meter. |
| Immobiliare.it (Catania) | Same methodology as Palermo, providing data for Sicily's other main rental hub. | We used it to estimate early-2026 rents and prices in Catania and show how yields differ within Sicily. We used it as a cross-check against Idealista neighborhood rent series. |
| Idealista (Palermo) | A major portal that publishes consistent price indices and neighborhood splits. | We used it to name specific Palermo neighborhoods and link them to rent levels. We used it to support claims about where tenants pay the highest rents with concrete numbers. |
| AirDNA (Palermo) | A widely used STR analytics provider built from Airbnb and Vrbo booking data. | We used it to estimate Palermo's short-term occupancy and nightly rates in early 2026. We used it to stress-test whether short-term really beats long-term after costs. |
| Ministry of Tourism (BDSR Portal) | The official national portal for short-let identifiers and CIN verification. | We used it to explain CIN as a national requirement and how it's obtained. We used it to frame Airbnb legality as compliance rather than a yes/no question. |
| Polizia di Stato (Alloggiati Web) | The official police portal stating the guest-registration obligation for short stays. | We used it to explain the operational rule that guest IDs must be reported within 24 hours. We used it to highlight a common pitfall for remote landlords in Sicily. |
| MEF (IMU Portal) | The Ministry of Economy portal where municipal IMU property tax rules are published. | We used it to explain that property tax is municipal and must be checked by comune. We used it to justify budgeting IMU even if you don't live in the property. |
| ISTAT (Housing Census) | Italy's official statistics institute providing census data on occupied vs non-occupied homes. | We used it to explain why vacancy in Sicily is structurally high with 34.9% of island dwellings non-occupied. We used it to translate that into a practical vacancy-budget assumption. |
| Regione Siciliana Tourism Observatory | The Sicilian regional body tracking tourism flows and registrations. | We used it to tailor short-term rental discussion to Sicily's tourism reality. We used it as the regional anchor for explaining why summer seasonality is extreme here. |
| Global Property Guide (Italy) | A long-running, transparent yield compendium that's easy to benchmark against. | We used it as an external benchmark for our computed Palermo and Catania gross yields. We used it to keep our Sicily estimates consistent with international yield reporting. |
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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