Italy's short-term rental tax in 2026: the 21% and 26% cedolare secca and when it becomes a business

Updated 10 November 2026

Private owners who let a flat for a few days in Italy can pay tax through the cedolare secca, a flat-rate tax, instead of ordinary income tax (IRPEF). The rules have changed twice recently: the 2024 budget law added a 26% rate alongside the 21% one, and the 2026 budget law lowered from four to two the number of apartments above which short-term letting is presumed to be a business. This guide sums up what we could read, as of November 2026, on Normattiva, in Chamber of Deputies documents, in Revenue Agency (Agenzia delle Entrate) circulars and in a regional circular, with the sources at the end. Where a point does not appear in an official source, we say so. It is not tax advice: for your case, ask your accountant (commercialista) or the Revenue Agency.

What counts as a short-term let

The legal basis is article 4 of Decree-Law 50/2017. According to the Revenue Agency's guide:

These are leases of residential property in Italy lasting no more than 30 days, signed by individuals outside any business activity.
They can include ancillary services such as linen, cleaning, wi-fi and utilities.
They cover homes in cadastral categories A1 to A11, excluding A10 (offices and private studios), with their appurtenances.
The regime applies even when the contract is concluded through an agency or an online platform such as Airbnb or Booking.com.

Cedolare secca: 21% on one property, 26% on the second

The 2024 budget law (Law 213/2023, article 1, paragraph 63) split the rate in two. According to the Revenue Agency's circular 10/E of 2024 and the Chamber of Deputies' topic page:

The standard cedolare secca rate on short-term lets is 26%, since 1 January 2024.
It drops to 21% for a single residential unit, which the taxpayer names in that year's income tax return.
The second apartment let is therefore taxed at 26%.
The cedolare secca is optional: owners who do not choose it pay IRPEF under the ordinary rules.
The 2026 budget law did not change these rates. The Chamber's dossier notes that the original bill allowed 21% on the first property only if it was let without intermediaries or platforms, but that condition did not make it into the final text: 21% on the first property stays.

From 2026: more than two apartments is presumed a business

The biggest change comes from Law 199 of 30 December 2025 (the 2026 budget law), article 1, paragraph 17:

It amends paragraph 595 of article 1 of Law 178/2020: the reference year becomes 2026 and «four apartments» becomes «two apartments».
The effect, according to the Chamber's dossier and topic page: from 2026 the short-term let tax regime, cedolare secca included, applies only to those who use no more than two apartments for short-term letting in each tax period.
From the third apartment the letting activity is presumed to be carried out as a business, and the income becomes business income. Until 2025 the presumption applied from the fifth apartment.
In short: first property at 21%, second at 26%, from the third a business.
Circular 10/E of 2024 points out that you can be a business even below the threshold, if the activity is organised as an enterprise (article 55 of the income tax code, TUIR, and article 4 of the VAT decree, DPR 633/1972): in that case the short-term let regime does not apply.
We found no official source on how apartments held in co-ownership or sublet are counted: ask your accountant.

VAT number, SCIA and CIN once it is a business

What happens when you go over the threshold:

Income is taxed under the business income rules, no longer through the cedolare secca. A business activity normally requires a VAT number (partita IVA) and the obligations that come with it; we found no official text saying so explicitly for short-term lets, so check timing and regime with your accountant.
On the administrative side, the Emilia-Romagna Region's circular of 28 January 2026, which cites FAQ 7.2 of the Ministry of Tourism and article 13-ter, paragraph 8, of Decree-Law 145/2023, says that anyone letting more than two apartments falls under the business presumption and must file a SCIA (certified notice of start of activity) with the municipality, for both short-term lets of up to 30 days and tourist lets of more than 30 days.
The same circular says national law sets no transition period and gives two options to those already letting three apartments: switch to a business activity, or go down to two apartments and update the notice filed with the municipality. Regional rules vary: check your Region's.
You need the CIN in every case, business or not, and it is the same code to display and include in listings. See our guide on the CIN, which also covers the extra requirements for letting as a business.

The 21% withholding by agencies and platforms

When an intermediary collects the rent, it keeps part of the tax. According to circular 10/E of 2024 and the Chamber's topic page:

Estate agencies and online platform operators that collect the rent or take part in its payment withhold 21% when they pay it over to the owner.
Since 2024 the withholding is always a payment on account, whatever regime you chose: it does not settle your tax.
In the tax return the owner works out the tax due (for example 26% on the second property), deducts the withholdings already suffered and pays any balance by the ordinary deadlines.
Foreign intermediaries with no permanent establishment in the European Union must appoint a tax representative in Italy; EU ones may comply directly or appoint one.
If the intermediary receives a VAT number from you, it may treat the let as a business activity and not apply these obligations (according to the Revenue Agency's 2017 guide).
Platforms also report each year to the tax authority how much they paid you, under the EU's DAC7 directive. See our guide on DAC7.

What to do in practice

A few useful checks before your next tax return:

Count how many apartments you used for short-term letting in 2026: with one or two you can use the cedolare secca, from the third the activity is presumed a business.
If you have two, decide which one to name in your return for the 21% rate: the other goes at 26%.
Keep the withholding certificates that Airbnb, Booking.com or the agency issue: you need them to deduct the withholding.
If you have three or more apartments, talk early to your accountant and to the municipality's SUAP office about the VAT number and the SCIA.
Keep your CIN up to date and use the same details (name, address, CIN, prices) on every channel.

Why this also matters for AI

AI assistants such as ChatGPT or Gemini do not know your tax regime, but they read your listings, your website and your CIN. A property whose details are consistent everywhere, CIN included, is easier to describe correctly. Tax details, on the other hand, stay between you, your accountant and the Revenue Agency.

How iQuota helps

The official page iQuota publishes for each property shows name, address, CIN, prices and direct booking consistently, in the data AI assistants and search engines read. iQuota is not an intermediary that collects rent, does not withhold tax, does not file returns for you, and cannot guarantee that an AI will recommend your property.

Want an official page with your CIN, prices and direct booking always consistent? The first 30 hotels join free until 30 June 2027.

See the Founding Hotels programme

Frequently asked questions

In 2026, is the cedolare secca on short-term lets 21% or 26%?

Both: 21% on a single unit you name in your tax return, 26% on the second apartment. The 2026 budget law did not change the rates introduced by the 2024 budget law.

From how many apartments does short-term letting become a business?

From 2026 it is presumed a business if more than two apartments are used for short-term letting, that is from the third. Until 2025 the threshold was more than four (Law 199/2025, article 1, paragraph 17).

If I let through Airbnb or Booking, do I pay twice?

No. The platform withholds 21% as a payment on account; in your return you work out the tax due, deduct the withholding and pay only any difference.

What counts as a short-term let?

A lease of a home in Italy of no more than 30 days, signed by an individual outside any business activity, possibly with linen, cleaning and wi-fi (article 4 of Decree-Law 50/2017).

With three apartments, do I need a VAT number?

The law presumes the activity is a business and the income becomes business income, which normally means a VAT number; in several Regions a SCIA is also required. Check your case with your accountant and the municipality.

Does the CIN change if I become a business?

You always need the CIN. What changes are the administrative obligations (SCIA and the requirements for a business activity): see our guide on the CIN.

Sources

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