What is Cedolare Secca for Italian Properties?

Cedolare Secca is an Italian income tax withholding system that applies to short-term rental hosts classified as non-professional hosts. Under Law Decree 50/2017, as amended by the 2024 Budget Law, non-professional hosts renting out properties in Italy are subject to a 21% income tax rate on earnings from stays of up to 30 days.

Who is Affected by Cedolare Secca?

The regulation applies to non-professional hosts who meet any of the following criteria:

• Hosts with 3 or fewer properties rented out short-term (effective 1 January 2026)
• Hosts not registered for VAT (without a valid EU VAT ID)
• Hosts without a commercial registration number

If you are eligible for Cedolare Secca, current regulations do not allow you to opt out of this withholding system.

What Does Cedolare Secca Mean for Hosts?

For non-professional hosts, a 21% withholding tax is applied to your rental earnings. This withholding is calculated on the gross payout amount before any VAT or platform fees. The tax applies to all income sources from short-term rentals, including cleaning fees, towel fees, and any other extra charges you offer to guests. The only exception is tourist taxes included in the guest price.

Professional hosts—those with a valid EU VAT ID, a commercial registration number, or at least three properties for rent—are not subject to this withholding. They continue to receive their full payouts without any Cedolare Secca deductions.

Tax Reporting and Forms

Holidu manages the tax reporting process on your behalf. You will receive the following documentation:

• Monthly F-24 Form: Used to remit the withheld taxes to the Italian tax authority (Agenzia delle Entrate) on a monthly basis
• Annual Certificazione Unica (CU): Provided by 16 March of the following year, detailing all taxes withheld on your earnings. This document can only be issued in a single name and cannot be co-owned
• Modello 770 Form: Submitted by Holidu to Agenzia delle Entrate by 31 October each year, reporting all taxes withheld for the previous period

What If Your Host Status Changes?

If your status changes and you become a professional host—by holding three or more properties, obtaining a valid EU VAT ID, or obtaining a commercial registration number—you must update your account details promptly. This ensures your tax classification is adjusted accordingly and you are no longer subject to the Cedolare Secca withholding.

Understanding the Definition of Property

For Cedolare Secca purposes, the definition of "property" depends on the cadastral and legal autonomy of the units involved. Even if you list multiple apartments on Holidu, they may count as a single property under Italian law. This distinction is crucial for determining whether you meet the three-property threshold for professional host status.

If you are uncertain about how your properties are classified under Italian law, consult with a tax advisor. Our local team in Italy is familiar with how this regulation typically applies across different regions and can provide guidance based on your specific situation.