Cedolare secca is a substitute tax regime that can also apply to income from short-term rentals, provided the legal requirements are met.
It applies a fixed tax rate and replaces IRPEF, surtaxes and, where applicable, registration tax and stamp duty.
How cedolare secca works
Cedolare secca is a substitute tax. For short-term rentals, it replaces:
- IRPEF
- regional and municipal surtaxes
- registration tax
- stamp duty
where due.
The tax is calculated on the rent actually received.
Tax rates
Two rates apply to short-term rentals:
- 21% on one property chosen by the taxpayer for each tax year
- 26% on any additional properties rented out on a short-term basis during the same tax year
The 21% rate does not automatically apply to the first home or the first contract in chronological order.
It applies to one property specifically chosen by the taxpayer.
Property limit and business activity
From 1 January 2026, if more than 2 properties are used for short-term rentals in the same tax year, the activity is treated as a business activity.
In practice:
- up to 2 properties: the short-term rental regime may still apply
- from the 3rd property onward: the rules for business activity apply
Tax return
Income from short-term rentals must always be reported correctly.
Rental income may be:
- subject to cedolare secca
- subject to ordinary IRPEF taxation, if cedolare secca is not chosen or does not apply
If the contract is handled through platforms or intermediaries that withhold tax, those amounts must still be reported in the tax return under the applicable rules.
Penalties
If there are errors or omissions, the tax penalties provided by law apply.
These may concern:
- failure to file
- inaccurate tax return
- late or omitted payment
For omitted payment, the ordinary penalty is generally 25% of the tax due, with possible reductions in the cases provided by law.
Penalties may also be reduced through voluntary disclosure and correction, where the relevant conditions are met.
Summary
- Short-term rentals are rental agreements of up to 30 days for residential properties
- Cedolare secca may also apply to short-term rentals, provided the activity is not carried out as a business
- The rate is 21% on 1 property and 26% on the others
- From 2026, if more than 2 properties are used for short-term rentals, the activity is treated as a business activity
- Rental income must always be properly reported in the tax return
Legal updates
- Law 199/2025: from 2026, the business-activity threshold drops from 4 to 2 apartments
- Law 213/2023: cedolare secca is 21% on 1 property and 26% on the others
- References: Art. 4 of Decree-Law 50/2017, Italian Revenue Agency, Legislative Decree 471/1997