Cedolare secca on short-term rentals in Italy: 21% vs 26% and the two-apartment limit (2026)

What is the cedolare secca?

“Cedolare secca” (literally “dry coupon”) is a substitute tax on rental income. Instead of adding your rent to your other income and paying Italy’s progressive income tax (IRPEF) plus regional and municipal surcharges, you pay a single flat rate on the rent. It also replaces registration and stamp duties on contracts that are registered — though contracts of 30 days or less don’t need registering at all.

Since 2017 (Decree-Law 50/2017, art. 4) it can also be applied to short-term rentals (locazioni brevi), including those with accessory services like linen, cleaning and Wi-Fi, sublets, and single rooms. It’s optional: you choose it in your tax return for the year the rent is earned.

Which rentals qualify for the short-let regime?

According to the Agenzia delle Entrate (Italy’s tax agency), the regime applies when all of these are true:

• Each contract lasts no more than 30 days (counted per contract, even if the same guest books again).
• The property is residential (cadastral categories A1–A11, excluding A10 offices) and located in Italy, plus any appurtenances such as a garage or cellar.
• Both landlord and guest are private individuals acting outside a business — a company booking staff housing doesn’t qualify.
• Services are limited to accessory ones (linen, cleaning, Wi-Fi, phone). Offering breakfast, meals, car hire or guided tours takes you outside the regime.
• You use the regime for no more than two apartments in the tax year (from 2026).

It doesn’t matter whether you book guests directly or through Airbnb, Booking.com or an agency. If any of these terms are unfamiliar, our short-term rental glossary explains them.

21% or 26%: which rate applies?

The rate applies to the full rent stated in the contract, without the 5% flat deduction available under ordinary taxation. If you charge a lump sum for cleaning or other services, it’s part of the taxable amount; costs re-charged to the guest at actual cost, or paid directly by the guest, are not.

What changed in 2026 with the two-apartment limit?

Until 31 December 2025, the short-let regime covered up to four apartments per owner. Italy’s 2026 budget law (Law 199/2025, art. 1, para. 17) cut that to two. Above the threshold, the short-term rental activity — whoever carries it out — is presumed to be run as a business.

Being treated as a business changes more than the tax rate. The CIN law requires anyone running short-term rentals as a business to file a SCIA (a formal start-of-business notice) with the Comune, with fines of €2,000–10,000 for operating without one — see our guide to Italy’s CIN code. If you own three or more apartments, sit down with a commercialista (an Italian chartered accountant) before the year starts: options include longer-term or mid-term leases for some units, or setting up properly as a business.

How does the 21% withholding by platforms and agencies work?

If an intermediary — a property manager, an agency or an online platform — collects the rent or handles the payment for you, the law makes it a tax withholding agent. It must:

1. 1Withhold 21% of the rent as an advance (ritenuta d’acconto), whatever regime you choose.
2. 2Pay it to the Italian tax authority and report the contract data to the Agenzia delle Entrate.
3. 3Give you a tax certificate showing the income and the amount withheld.

In your tax return you calculate the tax actually due (cedolare at 21% or 26%, or ordinary IRPEF), subtract the 21% already withheld and pay the balance — or claim back any excess. Platforms based outside Italy have the same duties; depending on where they’re established, they meet them directly, through an Italian permanent establishment or through an Italian tax representative.

A worked example (hypothetical)

An owner rents two apartments short-term in 2026, both through a platform that collects payments. Apartment A earns €18,000 in gross rent and Apartment B €12,000. The owner chooses A for the 21% rate.

The tourist tax isn’t part of this calculation: it’s a separate municipal levy paid by guests that you collect and pass on. Our guide to Italy’s tourist tax covers who pays and who files.

I live outside Italy. What applies to me?

The Agenzia delle Entrate’s instructions for non-residents are clear on the basics:

• Income from buildings located in Italy is taxable in Italy even if you live abroad.
• Non-residents with Italian-source income file the Modello Redditi PF, declaring their non-resident status.
• A home you own in Italy can’t be treated as your main residence for Italian tax purposes if you live elsewhere.
• If your country has a double taxation treaty with Italy, it generally includes measures so the same income isn’t taxed twice.

The Agenzia’s short-let guide describes the regime in terms of private individuals renting homes located in Italy and doesn’t list residence among the conditions. Even so, how the cedolare secca interacts with your home country’s taxes depends on the treaty and on your situation: have an Italian commercialista confirm it, ideally together with your adviser at home. For the practical side of owning from abroad, see how to manage an Airbnb in Italy remotely.

Where does Maurice fit in?

Maurice cuts the operational work around each booking — answering guests 24/7 in their language, running online check-in, sending guest data to Alloggiati Web and collecting the tourist tax by card — so your time goes to decisions like this one. Its dashboard shows occupancy, payments and check-ins, and you can export the data to share with your accountant. See how it works for Airbnb and Booking.com hosts.