{"id":1961,"date":"2022-10-01T15:41:25","date_gmt":"2022-10-01T13:41:25","guid":{"rendered":"http:\/\/159.65.127.138\/?p=1961"},"modified":"2026-02-12T22:45:27","modified_gmt":"2026-02-12T21:45:27","slug":"italian-tax-aspects-of-renting-italian-real-estate-for-landlords","status":"publish","type":"post","link":"https:\/\/taxing.it\/it\/italian-tax-aspects-of-renting-italian-real-estate-for-landlords\/","title":{"rendered":"Aspetti fiscali italiani della locazione di immobili italiani \u2013 per i locatori"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1961\" class=\"elementor elementor-1961\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-69d55e4 e-flex e-con-boxed e-con e-parent\" data-id=\"69d55e4\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-6086447 e-con-full e-flex e-con e-child\" data-id=\"6086447\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4007ba9 elementor-widget elementor-widget-text-editor\" data-id=\"4007ba9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2>2026 Legislative Changes<\/h2><h3>A &#8220;Three Unit&#8221; Entrepreneurial Trigger (<em>Presunzione d&#8217;Impresa<\/em>)<\/h3><p>The 2026 Italian finance Law (Law 199\/2025) has made some significant amendments to the tax position for landlords renting Italian property.\u00a0<\/p><p>Under the old rules you could rent up to four &#8220;units&#8221; before being &#8220;presumed&#8221; to be conducting a business.<\/p><p>The threshold has been lowered to 3 units starting from FY 2026.<\/p><p>If a landlord rents out 3 or more residential units for short-term rentals in a tax year, the activity is automatically classified as &#8220;entrepreneurial.&#8221; This requires:<\/p><ul><li>Opening a Partita IVA (VAT number);<\/li><li>Registering with <a href=\"https:\/\/taxing.it\/italian-social-security-contributions\/\" target=\"_blank\" rel=\"noopener\">INPS (Social Security<\/a>), which may add a fixed cost even if profits are low;<\/li><li>The Cedolare Secca (flat tax) regime for those units does not apply. Income must be taxed as business income (though the 5%\/15% flat tax <a href=\"https:\/\/taxing.it\/small-taxpayers-flat-rate-tax-regime\/\" target=\"_blank\" rel=\"noopener\">Regime Forfettario<\/a> 15% may be an option for some);<\/li><\/ul><h3>Rate of Tax Under Cedolare Secca Regime<\/h3><p>The initial draft of the Italian FY 2026 Finance Law\u00a0 contained a proposal to raise, in its totality, from 21% to 26% the flat tax (<em>cedolare secca<\/em>) on short term lettings via rental platforms (e..g Airbnb).\u00a0<\/p><p>This proposal did not make it into the final legislation so that the pre 2026 rules continue to apply:<\/p><h3 data-path-to-node=\"5\">The 21% vs. 26% Bifurcation<\/h3><p data-path-to-node=\"6\">Them rate of tax depends on the number of units rented:<\/p><ul><li>One Property: The landlord can choose one unit to be taxed at the 21% rate.<\/li><li>Second and Further Properties: If the landlord has a\u00a0 a second unit, the relevant rental income it is taxed at 26%.<\/li><\/ul><p data-path-to-node=\"7,1,0\">Since agents and rental platforms withhold 21% by default, landlords who are not required to register as a business must pay the extra 5% due on rental units beyond the first via the annual tax return.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-b8ee5de e-flex e-con-boxed e-con e-parent\" data-id=\"b8ee5de\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-3660570 e-con-full e-flex e-con e-child\" data-id=\"3660570\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-026d7f1 elementor-widget elementor-widget-text-editor\" data-id=\"026d7f1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2 style=\"text-align: justify;\">Introduction\u00a0<\/h2><p style=\"text-align: justify;\">This guide briefly sets out the main issues arising on the short term (&lt;30 days) rental of residential\u00a0\u00a0<\/p><h3>Classification of the Activity<\/h3><p>Under Italian rules a rental activity can be classified into one of four broad categories each with their own specific tax and social security treatment.<\/p><ol><li>a private (non business) letting business activity<\/li><li>a business activity where you are registered under <a href=\"https:\/\/taxing.it\/small-taxpayers-flat-rate-tax-regime\/\" target=\"_blank\" rel=\"noopener\">the Regime Forfettario<\/a><\/li><li>a business activity where you are registered under a normal tax regime (usually the Regime Semplificato).<\/li><li>an activity connected with an agricultural undertaking.<\/li><\/ol><p>Which of these categories is applicable will depend on a series of variables, such the type of property being rented, the number of units you rent, and within the scope of the regulations how to choose to set up.\u00a0<\/p><p style=\"text-align: justify;\"><span lang=\"EN-US\">In terms of choice of set up, you also have the choice to purchase the property <a href=\"https:\/\/taxing.it\/02-business-structures\/\" target=\"_blank\" rel=\"noopener\">via a limited company or other entity<\/a> and run the rental activity as a business in which case the rules of corporate income taxes or partnership taxes will apply.\u00a0 <\/span><\/p><p>In terms of choice of structure you are restricted by the number of units that you are renting, given the rule (from FY 2026) if you rent more than three units then you are automatically considered to be a business and need to register as such at the outset.<\/p><p style=\"text-align: justify;\"><span lang=\"EN-US\">A restriction to operating a private letting activity also arises from the type of services you will be providing.\u00a0 Italian law permits\u00a0 the provision of only limited &#8220;ancillary&#8221; services. before the activity needs to be classified as a business.\u00a0 <\/span><\/p><h3>Limited Ancillary Services<\/h3><p style=\"text-align: justify;\"><span lang=\"EN-US\">These include:<\/span><\/p><ul><li style=\"text-align: justify;\"><span lang=\"EN-US\">provision of bed linen and towels for the duration of the rent<\/span><\/li><li style=\"text-align: justify;\"><span lang=\"EN-US\">air conditioning<\/span><\/li><li style=\"text-align: justify;\"><span lang=\"EN-US\">wifi<\/span><\/li><li>cleaning before and after the rental duration.<\/li><\/ul><h3>Business Type Ancillary Services<\/h3><p style=\"text-align: justify;\"><span lang=\"EN-US\">Proving more than the permitted minimum could mean that your activity should be run as a registered business.\u00a0 \u00a0This might mean, for example that if you are providing<\/span><\/p><ul><li style=\"text-align: justify;\"><span lang=\"EN-US\">meals,<\/span><\/li><li style=\"text-align: justify;\"><span lang=\"EN-US\">a drinks cabinet\/cupboard<\/span><\/li><li style=\"text-align: justify;\"><span lang=\"EN-US\">changes, during the stay, of bed linen, towels,\u00a0 turning down beds<\/span><\/li><li style=\"text-align: justify;\"><span lang=\"EN-US\">guided tours<\/span><\/li><li style=\"text-align: justify;\"><span lang=\"EN-US\">airport transfers<\/span><\/li><li style=\"text-align: justify;\"><span lang=\"EN-US\">support staff<\/span><\/li><\/ul><p><span lang=\"EN-US\">In these circumstances you need to consider whether you need to register a business or set up a company\/partnership type entity, to run the activity. <\/span><\/p><h3>Deduction of costs<\/h3><p><span lang=\"EN-US\">Registering as a business either as sole proprietor or via a legal entity may allow you to obtain tax deduction for the amortisation of purchase price and restructuring costs, along with the costs of managing the rental business.\u00a0<\/span><\/p><p><span lang=\"EN-US\">A business structure may allow you to reclaim VAT on such costs, but with a requirement to charge VAT (value added tax) on top of the rent and extra tax compliance and reporting obligations.\u00a0 The applicable rate of VAT on rents where you are running a lettings business is generally 10%.<\/span><\/p><p>The Regime Forfettario is a hybrid\u00a0 &#8211; you get a lump sum deduction in place of costs (normally 60% of gross rents) and you do not need to add VAT to rents. by the same token you cannot recover input VAT on business expenses.\u00a0<\/p><p>Note that the Regime Forfettario as a special tax regime contains eligibility conditions. In particular it is only available if you are tax resident in Italy for any relevant tax year, or are a EU resident deriving more than 75% of your total annual income from the Italian letting activity.<\/p><p>We deal with taxes due under the various regimes below.\u00a0In general there is a requirement to pay Italian income tax on all letting income.\u00a0 Agents and platforms involved with the letting of Italian real estate are generally under obligation to withhold tax on payments to landlords of letting income received from tenants. Tax should generally withheld at the rate of 21% of gross rents. The tax so withheld represents a credit against actual due on income to be reported via an annual income tax return.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-160632d elementor-widget elementor-widget-text-editor\" data-id=\"160632d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2>Local authority consents and permissions<\/h2><p style=\"text-align: justify;\">Before considering the tax aspects of renting out Italian real estate it is necessary first to consider the question of notices and permits.\u00a0 Declaring income for tax purposes on real estate that is not compliant with the\u00a0 general legal rules for letting\u00a0 out real estate will only lead to fines and penalties.\u00a0 And the tax position will depend on how the property you intend to rent is registered with authorities in obtaining the CIR and CIN.<\/p><p style=\"text-align: justify;\">Recent years have seen an increase\u00a0 in the requirements for obtaining authorization to rent accommodation\u00a0 as a response to lobbying from hoteliers associations, concerned about unfair competition and the tax authorities concerned about evasion of tax on income and to concerns about residential property in historic city centre being available only for tourists.\u00a0 This presents an extremely moveable legislative background.\u00a0<\/p><p style=\"text-align: justify;\">Policies are set at municipal (comune), regional and central government levels so there is a series of authorities (sometimes in competition with each other)\u00a0 responsible for regulating the sector, meaning that the authorization process varies around Italy.\u00a0\u00a0<\/p><p style=\"text-align: justify;\">The authorization process is focussed on<\/p><ul><li>obtaining a Regional Code Number (CIR) identifying local rules and regusations required for the issue of the same.<\/li><li>obtaining, once the CIR is issued a National lettings code number (CIN)<\/li><li>complying with regulations requiring notices\/plaques to be affixed to the property and the details to be shown on them<\/li><li>complying with the rules of reporting guest\u00a0 details to the police\u00a0 authorities\u00a0<\/li><\/ul><p>For more information see the Checklist below\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1f94b05 elementor-widget elementor-widget-text-editor\" data-id=\"1f94b05\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2>Checklist for renting Italian real estate<\/h2><ul><li style=\"text-align: justify;\"><span style=\"color: var( --e-global-color-text ); background-color: var( --e-global-color-8321d3c );\">Consideration of health and safety regulations and especially safety and security kit and\/or works required to the property to enable the rental activity to be legally carried on, and the issue of applicable certification of compliance of e.g. electricity\u00a0 and gas systems;<\/span><\/li><li style=\"text-align: justify;\">Consideration of the rules regarding the characteristics of the property to be let and whether these meet the standards required by applicable local and national legislation, classification of the type of letting;<\/li><li>Consideration of local authority regulations that may restrict property lettings especially in high density tourist areas;<\/li><li>Consideration of condominium regulations, if applicable, which may seek\u00a0 to restrict short lettings, access to common parts etc.<\/li><li style=\"text-align: justify;\">Notice to local authority of commencement of the letting activity and in most cases the registrations of the property on the applicable Italian Region&#8217;s web portal, obtaining a CIR (regional Identification code).\u00a0 \u00a0<\/li><li style=\"text-align: justify;\">Once the CIR is issued, application can be made for issue of<a href=\"https:\/\/taxing.it\/national-identification-code-cin-for-short-term-rentals\/\" target=\"_blank\" rel=\"noopener\"> a national\u00a0 identification number (CIN)<\/a> to be reported on the property and on publicity. The CIN is\u00a0 a legal requirement under national law;\u00a0\u00a0<\/li><li style=\"text-align: justify;\">Organizing signs, plaque at the entrance of the property and-or affixing notices of registration details within the property.<\/li><li style=\"text-align: justify;\">Registration with the Police Service &#8220;Questura&#8221;, to effect regular reporting of <span style=\"color: var( --e-global-color-text ); background-color: var( --e-global-color-8321d3c );\">names and ID details of all people hosted in the\u00a0 accommodation. This can be done online. via the Police Service &#8220;<a href=\"https:\/\/alloggiatiweb.poliziadistato.it\/PortaleAlloggiati\/\" target=\"_blank\" rel=\"noopener\">Alloggiati Web<\/a>&#8221; portal after registering with your local Questura (Police Service Headquarters.)<\/span><\/li><li style=\"text-align: justify;\"><span style=\"color: var( --e-global-color-text ); background-color: var( --e-global-color-8321d3c );\">Keep receipts issued by the Police Service (<i>Ricevute<\/i>) for five years.<\/span><\/li><\/ul><div>\u00a0<\/div><div style=\"text-align: justify;\">Exact procedures will depend on the location of the property and local applicable rules. If you are purchasing a property to let out, consideration of the above will be worthwhile ahead of making an offer to purchase.<\/div><div>\u00a0<\/div><div style=\"text-align: justify;\">The rules can appear complex and in the current environment. with regulations legislation being continually updated, compliance can be difficult and time-consuming.\u00a0 Estate agents and &#8220;co-hosts&#8221; are increasingly available to assist clients with these matters.<\/div><p style=\"text-align: justify;\">A significant obstacle at present is the fact that non Italian residents (people not registered as resident with the &#8220;Anagrafe&#8221; maintained by the local Comune), cannot, unless they are Italian citizens, obtain an Italian Digital ID (CIE, electronic ID card\u00a0 or\u00a0 \u00a0<a href=\"https:\/\/taxing.it\/the-spid-italian-digital-identity\/\" target=\"_blank\" rel=\"noopener\">SPID<\/a>). This means that people who do not have Digital ID must necessarily find third party service providers, as they are not able to register with many of of the online web portals. The EU is rolling out a programme of EU wide digital ID&#8217;s issued by Member States, but progress is slow, and anyway will not impact non EU citizens.\u00a0\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dc2965a elementor-widget elementor-widget-text-editor\" data-id=\"dc2965a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2>Indirect Taxes<\/h2><h3 style=\"text-align: justify;\">Tourist Taxes<\/h3><p>Apart from the income tax, if you rent out property you may also need to collect and hand over the tourist tax to the local authority where the property is situated.\u00a0<\/p><p>Many local authorities around Italy (mainly those in the main tourist centres) have instituted a local tourist or occupancy tax.\u00a0 And the list of local authorities instituting such a tax is growing. Airbnb has entered into agreements to manage this on behalf of the landlord with some local authorities.<\/p><h3>Local Real Estate Taxes and Charges<\/h3><p>The ownership of property where you are not registered as resident will comport the payment of <a href=\"https:\/\/taxing.it\/imu-local-real-estate-ownership-tax\/\" target=\"_blank\" rel=\"noopener\">IMU<\/a> &#8211; the local property ownership tax. See<a href=\"https:\/\/taxing.it\/imu-local-real-estate-ownership-tax\/\"> here f<\/a>or more information.<\/p><p>Owning real estate also comports the obligation to pay\u00a0 <a href=\"https:\/\/taxing.it\/tari-italian-refuse-disposal-tax\/\">TARI,<\/a> the local Refuse Tax\u00a0 \u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-785736d elementor-widget elementor-widget-text-editor\" data-id=\"785736d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2>What Tax do I Pay?<\/h2><p><span style=\"background-color: var( --e-global-color-8321d3c );\">The applicable Italian tax regimes for short term rental income.\u00a0<\/span><span style=\"background-color: var( --e-global-color-8321d3c );\"> For a private letting activity rents can be taxed as follows\u00a0<\/span><\/p><ul><li>Gross rent flat rate basis (<a href=\"#cedsecc\">Cedolare secca<\/a>) &#8211; a 21% or 26% flat tax depending on number of units (the default regime);<\/li><li><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Normal income tax (<a href=\"https:\/\/taxing.it\/personal-income-tax-irpef-rates\/\" target=\"_blank\" rel=\"noopener\">IRPEF)<\/a> regime &#8211; where tax is generally applied at scale rates on 95% of total gross rental income, although special rules apply for sub-letting;<\/span><\/li><li><span style=\"font: 7.0pt 'Times New Roman';\">\u00a0<\/span><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Registering for <a href=\"https:\/\/taxing.it\/table-of-vat-rates-2\/\" target=\"_blank\" rel=\"noopener\">VAT<\/a> under the Regime Forfettario (only for individuals who are tax resident in Italy or who derive at least 75% of total income from Italian sources.<\/span><\/li><\/ul><p>It is of course possible as a further option to purchase or sub let\u00a0 the property via a business entity (limited libility company, prartnership or societa semplice &#8211; see this post for more infoirmation on <a href=\"https:\/\/taxing.it\/purchasing-italian-real-estate-individuals-vs-corporate-structure\/\" target=\"_blank\" rel=\"noopener\">business\u00a0 structures<\/a>. By doing so you may be able to access a\u00a0 tax deduction of amortization of the purchase price, restructuring costs and costs relating to the rental business. the additional set up and ongoing compliance need to be weighed up.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8dd77ac elementor-widget elementor-widget-text-editor\" data-id=\"8dd77ac\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2><!--[endif]--><span lang=\"EN-US\">Flat Rate \u201cCedolare Secca\u201d<\/span><\/h2><p class=\"MsoNormal\"><span lang=\"EN-US\">This Regime is available for a private letting activity, ie one where the landlord rents out no more than\u00a0 two property units.\u00a0 Under this regime you pay tax at 21% or 26% on the gross rent. No deduction is admitted for expenses &#8211; it is a flat rate applied to the rent paid by tenants.\u00a0 No deduction is allowed even for letting platform fees or cleaning and management costs, except to say that we have seen a legal argument being developed that the definition of gross rents should exclude the letting platform fee. That may be an issue for the Italian courts to decide.<\/span><\/p><p>The rate is reduced to 21% if you are\u00a0 letting no more than one property unit. Care needs to be taken here as if you are letting out different buildings or apartments on the same property, these may be considered as multiple lettings triggering the 26% tax. The position may depend on how the property has been classified in requesting the CIR and CIN letting code numbers.\u00a0\u00a0<\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">There is a reduced rate for \u201cprotected tenancies\u201d i.e. contracts where the tenant has special legal rights under a protected tenancy, and so not usually applicable to short term lettings.\u00a0<\/span><span lang=\"EN-US\">\u00a0<\/span><\/p><p>You do not need to register for VAT, or apply VAT on rental receipts as long as you are not renting out more than 3 real estate units.\u00a0<\/p><p>What constitutes a rental unit will depend primarily on how the rented property is registered with the land registry and how you have prepared your CIR and CIN applications.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a0d1e4e elementor-widget elementor-widget-text-editor\" data-id=\"a0d1e4e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2><span lang=\"EN-US\">Standard Income Tax Rates<\/span><\/h2><p class=\"MsoNormal\"><span lang=\"EN-US\">For individuals who are not letting property as part of business activity, the standard income tax IRPEF regime taxes rent received based on the normal <a href=\"https:\/\/taxing.it\/personal-income-tax-irpef-rates-2\/\" target=\"_blank\" rel=\"noopener\">scale rates<\/a>, after a flat 5% deduction for expenses. So if your rental income received from tenants in the tax year is <\/span><span lang=\"EN-US\" style=\"font-family: 'Calibri',sans-serif; mso-ascii-font-family: 'Century Gothic'; mso-hansi-font-family: 'Century Gothic'; mso-bidi-font-family: 'Times New Roman'; mso-bidi-theme-font: minor-bidi;\">\u20ac<\/span><span lang=\"EN-US\"> 12,000, you pay income tax (IRPEF) on Euro 11,400.\u00a0 Again, no specific deduction is allowed for expenses such as cleaning costs, interest or depreciation of the property, regardless of whether it is let furnished or unfurnished, short term or long term. All you get is the 5% lump-sum deduction.<\/span><\/p><p>Opting for the regime however allows the taxpayer to benefit, if they are entitled (and many non resident landlords will not be entitled)\u00a0 from other <a href=\"http:\/\/159.65.127.138\/list-of-deductions-and-deductible-expenses\/\">standard deductions<\/a>\u00a0which are not available where the income under the cedolare secca regime is applied.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f7a551d elementor-widget elementor-widget-text-editor\" data-id=\"f7a551d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2>Registering for VAT under the Regime Forfettario<\/h2><h3>Income Tax<\/h3><p>As an alternative if you are intending to rent out your property on short term lets (e.g. via airbnb or booking.com) you could consider\u00a0 registering for VAT under the 5% or 15%\u00a0 flat tax regime\u00a0 known as the R<a href=\"http:\/\/159.65.127.138\/small-taxpayers-flat-rate-tax-regime\/\" target=\"_blank\" rel=\"noopener\">egime Forfettario.<\/a> Under this regime the landlord is subject to a flat rate of tax on 40% of gross income &#8211; ie. there is an effective deduction in place of actual costs equal to 60% of gross rents.\u00a0 This regime is only available if you are either <a href=\"https:\/\/taxing.it\/italian-statutory-tax-residence-test-for-individuals-2024-changes\/\" target=\"_blank\" rel=\"noopener\">tax resident<\/a> in Italy for any relevant tax year, or you are resident in EU(EEA member state and derive more than 75% of total income from Italian sources.<\/p><p>There a number of other conditions to access the\u00a0 &#8220;regime forfettario&#8221; including staying within the statutory threshold of gross rents received which is currently Euro 85,000 per annum.<\/p><h3>Social Security<\/h3><p>Landlords who are registered under the regime forfettario are also potentially liable to Italian <a href=\"https:\/\/taxing.it\/italian-social-security-contributions\/\" target=\"_blank\" rel=\"noopener\">social security<\/a>. This takes the total annual bill for tax and social security to at most around 15% of gross rents\u00a0 A <span style=\"color: var( --e-global-color-text ); background-color: var( --e-global-color-8321d3c );\">\u00a0reduction may be available for the first five years of operating a new letting activity.<\/span><\/p><p><span style=\"color: var( --e-global-color-text ); background-color: var( --e-global-color-8321d3c );\">The bulk of the total cost is thus represented by social security contributions &#8211; mainly contributions to the Italian state pension scheme.\u00a0 On this regime, you will likely need an accounting and tax compliance service to handle electronic invoicing and other formalities \/filings required by the regime. Overall the total cost will usually still be less than the 21% under the flat tax regime.\u00a0<\/span><\/p><h3>VAT (Value Added Tax)<\/h3><p>Under the Regime although you are registered for VAT, you do not need to add VAT to rents. by the same token you cannot recover the VAT to suppliers.\u00a0<\/p><p>B&amp;B, rent-a room or vacation home owners belonging to the flat-rate scheme enjoy an additional benefit as they may\u00a0 not be subject to the annual minimum income social security contribution generally applicable to artisans and traders.\u00a0 \u00a0<\/p><p>For the first year of starting the activity a reduction equal to 35% of the contributions to be paid, may be claimable via an online application form.<\/p><p>Again, under the regime forfettario it is not possible to offset <a href=\"http:\/\/159.65.127.138\/list-of-deductions-and-deductible-expenses\/\">the standard tax credits and deductions,<\/a> but there is a sizeable lump-sum deduction in place of actual costs.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-aa9712b elementor-widget elementor-widget-text-editor\" data-id=\"aa9712b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2><span lang=\"EN-US\">Which Tax Regime is Most Convenient<\/span><\/h2><p><span lang=\"EN-US\">The most appropriate\/convenient\u00a0 regime will depend on a number of factors such as:<\/span><\/p><ul><li><span lang=\"EN-US\">the type of property (e.g. residential, commercial or agricultural)\u00a0 and what is exactly is going to be rented<\/span><\/li><li>the number of properties to be rented<\/li><li><span lang=\"EN-US\">the kind of activity and ancillary services to be offered<\/span><\/li><li><span lang=\"EN-US\">the forecast income<\/span><\/li><li><span lang=\"EN-US\">your other sources of income<\/span><\/li><li><span lang=\"EN-US\">the prospective rent\u00a0<\/span><\/li><li><span lang=\"EN-US\"> costs for purchase and restructuring and VAT on the same<\/span><\/li><li>costs of managing the rental activity and VAT on the same<\/li><li><span lang=\"EN-US\">tax on purchase if applicable<\/span><\/li><li><span lang=\"EN-US\"> the number of staff involved, if any<\/span><\/li><li>whether you are taking advantage of tax relief for restructuring or energy saving works and equipment<\/li><li><span lang=\"EN-US\"><span lang=\"EN-US\">the planning, building, letting and condominium consents available for the kind of activity.<\/span><\/span><\/li><li>whether you are tax resident in Italy or not<\/li><li>whether you will derive more than 75% of total income from the letting activity<\/li><li>the <a href=\"https:\/\/taxing.it\/tax-on-disposal-of-real-estate\/\" target=\"_blank\" rel=\"noopener\">capital gains tax<\/a> position on future sale<\/li><\/ul><p>\u00a0<\/p><p>All of these factors need to be weighed up at the planning stage. It is difficult, if not impossible, to switch from one regime to another. And feel free to get in touch via our <a href=\"https:\/\/taxing.it\/contact-us\/\" target=\"_blank\" rel=\"noopener\">contact form<\/a> if you have any questions.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-59c6533 e-flex e-con-boxed e-con e-parent\" data-id=\"59c6533\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-b59c2b9 elementor-widget elementor-widget-menu-anchor\" data-id=\"b59c2b9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"menu-anchor.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-menu-anchor\" id=\"cedsecc\"><\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-3c1f233 elementor-hidden-desktop elementor-hidden-tablet elementor-hidden-mobile e-flex e-con-boxed e-con e-parent\" data-id=\"3c1f233\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-89ed33b e-con-full e-flex e-con e-child\" data-id=\"89ed33b\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1525b3a elementor-widget elementor-widget-text-editor\" data-id=\"1525b3a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2><span lang=\"EN-US\"><span style=\"font: 7.0pt 'Times New Roman';\">\u00a0<\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"background: white;\">Some (potentially) useful links<\/span><\/h2><p>\u00a0<\/p><p><span lang=\"EN-US\"><span style=\"color: #000000;\">https:\/\/www.regione.lombardia.it\/wps\/portal\/istituzionale\/HP\/DettaglioRedazionale\/servizi-e-informazioni\/Imprese\/Imprese-turistiche\/Ricettivita-non-alberghiera\/strutture-ricettive-non-alberghiere\/strutture-ricettive-non-alberghiere<br \/><\/span><\/span><\/p><p><span lang=\"EN-US\"><span style=\"color: #000000;\">https:\/\/www.flussituristici.servizirl.it\/Turismo5\/app\/<\/span><br \/><\/span><\/p><p><span lang=\"EN-US\"><span style=\"color: #000000;\">https:\/\/alloggiatiweb.poliziadistato.it\/PortaleAlloggiati\/<\/span><br \/><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-1f042b7 elementor-hidden-desktop elementor-hidden-tablet elementor-hidden-mobile e-flex e-con-boxed e-con e-parent\" data-id=\"1f042b7\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-3c55e09 e-con-full e-flex e-con e-child\" data-id=\"3c55e09\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-dedc658 elementor-widget elementor-widget-text-editor\" data-id=\"dedc658\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h1><!-- [if !supportLists]--><span lang=\"EN-US\">1<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"background: white;\">How do I pay the tax?<\/span><\/h1><h2><!-- [if !supportLists]--><span lang=\"EN-US\">1.1<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"background: white;\">Self Assessment &amp; payment<\/span><\/h2><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext; background: white;\">Taxes on rental income are, on the whole, self-assessed in the annual return to be filed before the annual deadline, typically the 30 September of the following tax year. This deadline is often extended due to delays in issuing the forms or software \u2013 It was 31 October for 2017 and 2018, 2 December for 2019). <\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"background: white;\">\u00a0<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext; background: white;\">\u201cSelf-assessed\u201d means that the taxpayer needs to report the income\u00a0 in his or her annual tax return and pay the tax over to the tax authorities via the Form 24.\u00a0 \u00a0You can pay the tax at your bank or via your online banking if you have an Italian bank. \u201cInternational\u201d operators such as N26, Revolut or Transferwise do not, at the time of writing, have this facility.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"background: white;\">\u00a0<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext; background: white;\">Tax must be paid (usually \u2013 blanket extensions are sometimes given) on or before the 30 June of the year following the year in which the income was received (or was due under the tenancy agreement). At the same time you need to make payment in advance of the current year liability, leading to the \u201cDouble whammy\u201d in year 2 of your activities.\u00a0 The advance payment is 95% of the total of the prior year tax.\u00a0\u00a0 If the amount of the advance payment exceeds 257.52 euros, you can pay the advance in two installments: &#8211; First advance payment of 50% by 30 June; &#8211; Second advance payment of 50% by 30 November 40%); <\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"background: white;\">\u00a0<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext; background: white;\">Generally it is possible to pay late with a small uplift \u2013 the amount of which increases as time goes by. However steep penalties apply for a late payment which is assessed by the Tax Office.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"background: white;\">\u00a0<\/span><\/p><h2><!-- [if !supportLists]--><span lang=\"EN-US\">1.2<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"background: white;\">Withholding Tax<\/span><\/h2><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext; background: white;\">The only exception to general principle that you pay your own tax is for short terms lettings (less than 30 days) made through agencies\/web platforms. At the present time this withholding tax has \u00a0\u00a0&#8211; for the most part Italian agencies who withhold the tax at source, i.e. they deduct the tax from income paid by the tenant before passing on the proceeds net of tax to the landlord or landlady.\u00a0 Airbnb and other international agencies\/platforms are, at the time of writing not applying the withholding tax and renters ae paid there proceeds without deduction of tax (except tourist\u00a0 tax).<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"background: white;\">\u00a0<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">If your agent\/web platform withholding tax at source they will give you a certificate at the end of the year (the CU).\u00a0 At this stage, you do not need to do anything more unless you think that you would be better off.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">\u00a0<\/span><\/p><h1><!-- [if !supportLists]--><span lang=\"EN-US\">2<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\">Running it as a business<\/span><\/h1><p class=\"MsoNormal\"><span lang=\"EN-US\">\u00a0<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">Purchasing property which you can use in the running of a business activity gives you two principal advantages:-<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">\u00a0<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">You can obtain an income tax deduction for expenditure such as<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Costs of purchase, including taxes and professional fees(probably in terms of depreciation, although is fairly limited and tax relief will be spread over a number of years;<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Refurbishment costs, again possible over a number of years by way of tax depreciation, especially for additions and improvements<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Maintenance and running costs<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Advertising, publicity and directly related entertaining and travel costs<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Agency fees\/commissions<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Cleaning costs<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Staff costs<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">If you are running a hotel type business you can recover the VAT (value added tax) you pay for the purchase and on the various expenses mentioned in the previous paragraph.<\/span><\/p><p class=\"Bullet\" style=\"text-indent: 0cm; mso-list: none; tab-stops: 36.0pt;\"><span lang=\"EN-US\">\u00a0<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">Running has a business has a number of disadvantages though<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">\u00a0<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Additional administration accounting and tax compliance costs<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">If you are running a hotel type VAT registered business you will need to add VAT onto your invoices (usually this means an uplift of 10% on the invoices you deliver).<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol; mso-ansi-language: EN-GB;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span style=\"color: black; mso-color-alt: windowtext; mso-ansi-language: EN-GB;\">If you use a limited liability company there are \u201c<i>societ\u00e0 di comodo<\/i> \u2013 dummy company or alternative minimum tax rules that can operate to impose a deemed minimum annual income tax based on the presumed yield of the property if you do not make sufficient income \u2013 often a problem in early years. These same rules can operate to deny a carry forward of early losses and VAT credits.<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol; mso-ansi-language: EN-GB;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span style=\"color: black; mso-color-alt: windowtext; mso-ansi-language: EN-GB;\">If the building is used in a business any gain on a future disposal will be liable to tax.\u00a0\u00a0 Most residential, non business, property held by an individual for more than five years is not liable to tax on sale.<\/span><\/p><p class=\"Bullet\" style=\"margin-left: 17.85pt; text-indent: 0cm; mso-list: none; tab-stops: 36.0pt;\">\u00a0<\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">If you intend to purchase property to use in a business then you need to make the decision EARLY.\u00a0 It is in general not possible to backdate a business registration, so if you incur costs before being registered (or before the legal entity you are going to use to trade through is set up and registered) you may not be entitled to tax relief (or VAT credit) for the relative expenditure.\u00a0 <\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">\u00a0<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">There are a number of ways of structuring a real estate business venture, each with its own tax regime such as:<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">\u00a0<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Running the business as a sole trader under\u00a0 <\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol; mso-ansi-language: EN-GB;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">The rules applicable to agricultural undertakings\/<\/span><span style=\"color: black; mso-color-alt: windowtext; mso-ansi-language: EN-GB;\">agriturismi<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Running the business as a bed and breakfast, room rental e.g. <\/span><i><span style=\"color: black; mso-color-alt: windowtext; mso-ansi-language: EN-GB;\">affitacamera or pesnione<\/span><\/i><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\"> or private lettings business<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Self-employed under the flat rate regime. Under this regime a lump sum deduction (around 20-30%) deduction is given for costs and VAT is not recoverable.<\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Self-employed under the normal tax\/accounting regime <\/span><\/p><p class=\"Bullet\"><!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-size: 10.0pt; mso-bidi-font-size: 12.0pt; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"color: black; mso-color-alt: windowtext;\">Running the business through a company, branch of a foreign company or a trust. <\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">\u00a0<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">Which regime is appropriate\/convenient will depend on a number of factors such as the type of property (agricultural or urban), the kind of business , the number of staff involved, if any, the forecast income and expenditure, the planning and building consents available for the kind of activity.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">\u00a0<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">All of these factors need to be weighed up at the planning stage. <\/span><\/p><h1><!-- [if !supportLists]--><span lang=\"EN-US\">3<span style=\"font: 7.0pt 'Times New Roman';\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\" style=\"background: white;\">Indirect Taxes on rental contracts<\/span><\/h1><p class=\"MsoNormal\"><span lang=\"EN-US\">\u00a0<\/span><\/p><p>\u00a0<\/p><p class=\"MsoNormal\"><span lang=\"EN-US\">A letting agreement, if for a period of more than 30 days, is subject to a registration tax of 2% of the gross rent on initial registration and each annual anniversary after that. Stamp Duty is also payable \u2013 16 euro per each 4 pages of the agreement.\u00a0 No registration tax\/stamp duty applies to short-term and holiday lets \u2013 the flat rate tax or \u201ccedolare secca\u201d avoids the need to pay the registration tax.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>2026 Legislative Changes A &#8220;Three Unit&#8221; Entrepreneurial Trigger (Presunzione d&#8217;Impresa) The 2026 Italian finance Law (Law 199\/2025) has made some significant amendments to the tax position for landlords renting Italian property.\u00a0 Under the old rules you could rent up to four &#8220;units&#8221; before being &#8220;presumed&#8221; to be conducting a business. The threshold has been lowered [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,54,92,110,713,737,722],"tags":[],"class_list":["post-1961","post","type-post","status-publish","format-standard","hentry","category-technical-resource","category-blog","category-real-estate","category-tax-guide","category-doing-business-in-italy","category-investing-in-italy","category-menupost"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Italian tax aspects of renting Italian real estate \u2013 for landlords | Taxing.It<\/title>\n<meta name=\"description\" content=\"2026 Legislative ChangesA &quot;Three Unit&quot; Entrepreneurial Trigger (Presunzione d&#039;Impresa)The 2026 Italian finance Law (Law 199\/2025) has made some\" \/>\n<meta name=\"robots\" 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