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 that meet specific criteria. Understanding whether you qualify is essential for managing your tax obligations correctly.

You are considered a non-professional host if you have:

• 3 or fewer properties rented out short-term (effective 1 January 2026)
• No valid EU VAT ID registration
• No commercial registration number

If you meet these criteria, current regulations require you to comply with Cedolare Secca withholding. You cannot opt out of this system if you are classified as a non-professional host.

Professional hosts are not affected by this law. If you hold a valid EU VAT ID, have a commercial registration number, or own three or more properties for rent, you are classified as a professional host and nothing changes regarding your payouts from Holidu.

What does Cedolare Secca mean for hosts?

For non-professional hosts, Holidu withholds 21% of your earnings and remits the amount directly to the Italian tax authority, Agenzia delle Entrate. This withholding applies to your gross payout amount before any VAT or Holidu fees are deducted.

The 21% tax applies to:

• Accommodation earnings from guest stays
• Cleaning fees you charge
• Towel fees and other extra charges

The only exception to this withholding is tourist taxes included in the guest price, which are not subject to the 21% deduction.

Professional hosts receive their full payouts from Holidu without any withholding. Your classification as a professional host depends on having either a valid EU VAT ID, a commercial registration number, or owning at least three properties for rent.

How does tax reporting work under Cedolare Secca?

Holidu handles all tax reporting forms on your behalf. You will receive documentation that details your tax obligations and the amounts withheld throughout the year.

The key tax documents you will receive include:

• Certificazione Unica (CU): An annual report provided by 16 March of the following year that details all taxes withheld on your earnings. This document can only have one name and cannot be co-owned.
• F-24 form: Used by Holidu to remit the withheld taxes to the Italian tax authority on a monthly basis.
• Modello 770: Submitted by Holidu to Agenzia delle Entrate by 31 October each year, reporting the taxes withheld for the previous period.

Keep these documents for your records and consult with your tax advisor if you have questions about your specific tax situation.

What happens if my host status changes?

If your circumstances change and you transition from a non-professional to a professional host, it is crucial to update your account details immediately. You become a professional host by:

• Obtaining a valid EU VAT ID
• Obtaining a commercial registration number
• Listing three or more properties for rent

Updating your account ensures that your tax classification is accurate and that Holidu applies the correct withholding rules going forward.

How is a property defined under Cedolare Secca?

For Cedolare Secca purposes, the definition of "property" depends on the cadastral and legal autonomy of the units involved. Even if you have registered multiple apartments in Holidu, they may still count as a single property under Italian law.

This distinction is important because it affects whether you qualify as a professional host (3 or more properties) or a non-professional host (3 or fewer properties). When determining your property count, consider the legal classification of each unit rather than the number of listings.

If you are uncertain about how your properties are classified under Italian law, consult with a tax advisor. Local tax professionals in your region can provide guidance specific to your situation and help you understand how Cedolare Secca applies to your rental activity.

Are professional hosts exempt from Cedolare Secca?

Yes, professional hosts are entirely exempt from Cedolare Secca withholding. If you are classified as a professional host, the 21% withholding does not apply to your earnings, and you receive your full payouts from Holidu.

You qualify as a professional host if you have any of the following:

• A valid EU VAT ID
• A commercial registration number
• Three or more properties listed for short-term rental

Professional hosts manage their tax obligations independently and are not subject to the mandatory withholding system that applies to non-professional hosts.

Key takeaways about Cedolare Secca

Understanding Cedolare Secca helps you manage your rental income and tax obligations effectively:

• Non-professional hosts with 3 or fewer properties, no VAT ID, and no commercial registration must comply with 21% withholding
• Holidu handles all tax withholding and reporting on your behalf
• The withholding applies to gross earnings, cleaning fees, and extra charges, but not to tourist taxes
• Professional hosts are not affected and receive full payouts
• You must update your account if your status changes to professional
• Property definition depends on legal autonomy under Italian law, not the number of listings

If you have questions about your specific tax situation or need clarification on how Cedolare Secca applies to your properties, consult with a qualified tax professional who understands Italian rental income regulations.