What is Cedolare Secca for Italian Properties?

Understanding Cedolare Secca

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

Who is Affected by Cedolare Secca?

The Cedolare Secca regulation applies specifically to non-professional hosts. You fall into this category if you meet either of these conditions:

• You own 3 or fewer properties rented out as short-term rentals (effective January 1, 2026)
• You are not registered for VAT (do not have a valid EU VAT ID)

If you are eligible for Cedolare Secca, you cannot opt-out of this tax withholding option according to current Italian regulations.

What This Means for Your Earnings

As a non-professional host subject to Cedolare Secca, Holidu will withhold 21% of your earnings and remit this amount directly to the Italian tax authorities (Agenzia delle Entrate).

Tax Withholding Details

The 21% tax withholding applies to:

• The gross payout amount before any VAT or Holidu fees
• Cleaning fees charged to guests
• Towel fees and other additional charges

The only exception not subject to withholding is tourist taxes that are included in the guest price.

Professional Hosts Are Not Affected

If you are classified as a professional host, Cedolare Secca does not apply to you. Professional hosts are those who:

• Have a valid EU VAT ID, or
• Own five or more properties for rent

Professional hosts continue to receive full payments from Holidu with no tax withholding by the platform.

Tax Reporting and Forms

Holidu handles the necessary tax documentation for you. You will receive the following forms and reports:

F-24 Form

Holidu uses the F-24 form to remit the withheld taxes to the Italian tax authorities on a monthly basis.

Certificazione Unica (CU) Report

You will receive an annual Certificazione Unica (CU) report by March 16th of the following year. This report details the taxes withheld on your earnings. Please note that the tax document cannot be co-owned; only one name can appear on it.

Modello 770 Form

Holidu will submit the Modello 770 form to the Agenzia delle Entrate by October 31st each year, reporting the taxes withheld for the previous period.

What If Your Status Changes?

If your circumstances change and you become a professional host, you can request a status update. This might happen if you:

• Acquire five or more properties for short-term rental, or
• Obtain a valid EU VAT ID

To request a status change, contact Holidu directly with documentation of your updated circumstances.

Important Notes About Property Definition

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

If you are uncertain about how your properties are classified under Italian tax law, consult with your tax advisor to ensure you have the correct host status.