Introduction
Renting out property through Airbnb in Italy can be a lucrative opportunity for property owners, but it also comes with specific tax obligations that must be met to avoid fines and ensure compliance with Italian tax laws. Whether you are an Italian resident or a non-resident renting out your vacation home, understanding how to correctly report rental income, apply the appropriate tax regime, and fulfill your fiscal responsibilities is essential. This guide provides an overview of how Airbnb hosts in Italy should handle their tax obligations.
Who Needs to Pay Taxes on Airbnb Income?
If you earn income from short-term rentals in Italy through Airbnb or other platforms, you are required to declare and pay taxes on this income, whether you are a resident or non-resident.
- Residents: Must declare worldwide income, including rental earnings from Airbnb properties in Italy and abroad.
- Non-Residents: Are only taxed on income generated in Italy, meaning that if you own a rental property in Italy but live abroad, you must still report and pay taxes on the rental income.
Choosing the Right Tax Regime for Airbnb Rentals
Hosts in Italy have two main taxation options for rental income:
1. Cedolare Secca (Flat Tax Regime) – 21% or 26%
- This is a substitute tax that allows hosts to pay a flat tax rate of 21% on rental income from residential leases.
- For short-term rentals (less than 30 days per stay), the tax rate is 26%, provided the rental is not classified as an organized business activity.
- Landlords opting for Cedolare Secca do not pay additional regional or municipal taxes.
- However, hosts choosing this tax regime cannot deduct expenses related to property maintenance, utilities, or management fees.
2. Standard Progressive Income Tax (IRPEF)
- If the Cedolare Secca regime is not chosen, Airbnb rental income is subject to Italy’s progressive income tax system (IRPEF):
- 23% on income up to €28,000
- 35% on income from €28,001 to €50,000
- 43% on income over €50,000
Deductible expenses: Hosts choosing IRPEF taxation can deduct certain expenses, such as maintenance costs, utilities, property management fees, and mortgage interest.
Registering with the Italian Tax Authorities
Before renting out your property on Airbnb, you may need to register with the Italian tax authorities, especially if you plan to rent frequently. Key steps include:
- Obtaining a Codice Fiscale (Tax Code): Required for all tax filings in Italy.
- Submitting a SCIA Declaration: If operating as a business, you must notify your local municipality through the Segnalazione Certificata di Inizio Attività (SCIA).
- Registering for VAT (If Applicable): If your rental activity is considered a structured business, VAT registration may be required.
How to Declare Airbnb Income
Airbnb hosts must report their rental income in their annual Italian tax return:
- Residents: Declare Airbnb income in the Modello 730 or Modello Redditi PF by November 30 each year.
- Non-Residents: File rental income in the Modello Redditi PF under the non-resident section.
- Advance Tax Payments: Some taxpayers may need to make acconto d’imposta (advance payments) based on their previous year’s earnings.
VAT and Tourist Tax for Airbnb Rentals
Depending on the municipality, Airbnb hosts may also be required to collect and remit:
- Tourist Tax (Imposta di Soggiorno): Charged per night per guest and paid to the local municipality.
- VAT (If Applicable): Generally, individual hosts renting a property are exempt from VAT, but professional operators must charge and remit VAT at 10% or 22%.
Additional Tax Considerations for Airbnb Hosts
Withholding Tax on Short-Term Rentals
Since 2021, Italian law requires platforms like Airbnb to collect a withholding tax (ritenuta d’acconto) on behalf of the Italian tax authorities. If Airbnb collects payments on your behalf, a 21% withholding tax is deducted from rental income before payouts. Hosts must report this tax on their annual returns and ensure that any outstanding tax liabilities are settled.
Municipal Registration Requirements
Many Italian municipalities require Airbnb hosts to register their property for short-term rentals and provide a unique CIR code (Codice Identificativo Regionale). Failure to register can result in fines or property delisting from rental platforms.
Compliance and Penalties
Failure to report rental income or pay the appropriate taxes can lead to fines and audits by the Agenzia delle Entrate (Italian Revenue Agency). Common penalties include:
- Failure to file a tax return: Penalties range from 120% to 240% of the tax due.
- Late tax payments: Interest and additional fines may be applied.
- Unregistered tourist tax collection: Municipalities may impose fines for failing to collect or remit tourist tax from guests.
How ItalianTaxes.com Can Help
Managing Airbnb rental income taxes in Italy can be challenging, especially for non-resident hosts. ItalianTaxes.com, in partnership with Studio Metta, offers expert guidance, digital tax solutions, and compliance support to simplify tax filing. Our platform ensures accurate reporting, timely payments, and full compliance with Italian tax regulations, making tax season stress-free for Airbnb hosts.
Conclusion
Renting out a property on Airbnb in Italy requires careful tax planning and compliance with local regulations. Whether you choose Cedolare Secca or IRPEF, reporting rental income accurately is key to avoiding fines and staying compliant. By understanding the tax rules, keeping track of deadlines, and using professional tax services like ItalianTaxes.com, Airbnb hosts can confidently manage their rental income and focus on maximizing their property’s potential.
