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, meaning you are affected if you meet any of these criteria:

• You own 3 or fewer properties rented out short-term (effective 1 January 2026)
• You are not registered for VAT (without a valid EU VAT ID)
• You do not have 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 You as a Host?

Under Cedolare Secca, Holidu withholds 21% of your earnings and remits this amount directly to the Italian tax authority (Agenzia delle Entrate). This withholding applies to the gross payout amount before any VAT or Holidu fees.

What Is Subject to the 21% Withholding?

The following earnings are subject to the 21% withholding:

• Nightly rental rates
• Cleaning fees
• Towel fees
• Any other extra fees you charge guests

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

Professional Hosts Are Not Affected

If you qualify as a professional host, Cedolare Secca does not apply to you. You receive your full payouts from Holidu without any withholding. You are considered a professional host if you have any of the following:

• A valid EU VAT ID
• A commercial registration number
• Three or more properties for rent

Tax Reporting and Forms

Holidu handles the tax reporting and documentation on your behalf. Here's what you need to know about the forms involved:

F-24 Form

The F-24 form is used to remit the withheld taxes to the Italian tax authority on a monthly basis. Holidu manages this submission for you.

Certificazione Unica (CU) Report

You receive an annual Certificazione Unica (CU) report by 16 March of the following year. This document 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 submits the Modello 770 form to Agenzia delle Entrate by 31 October each year. This form reports the taxes withheld for the previous period on behalf of all eligible hosts.

What If Your Status Changes?

If your status changes and you become a professional host, it is important to update your account details. You may become a professional host if you:

• Obtain a valid EU VAT ID
• Obtain a commercial registration number
• Begin renting three or more properties

Updating your information ensures that the correct tax treatment is applied to your earnings going forward.

Understanding the Property Definition for Cedolare Secca

An important consideration when determining whether you qualify as a professional host is how "property" is defined under Italian law. The definition depends on the cadastral and legal autonomy of the units involved. This means that even if you have multiple apartments registered in Holidu, they may still count as a single property under Italian tax law.

Because this definition can be complex and varies by region, we recommend consulting with your tax advisor if you are uncertain about your status. If you need guidance to start with, local experts familiar with how this regulation typically applies in different regions can provide valuable assistance.

Key Takeaways About Cedolare Secca

• Cedolare Secca is a 21% income tax withholding that applies to non-professional short-term rental hosts in Italy
• Non-professional hosts are those with 3 or fewer properties, no VAT ID, and no commercial registration number
• The withholding applies to rental earnings, cleaning fees, towel fees, and other extra charges
• Holidu handles all tax reporting, including F-24 remittance, CU reporting, and Modello 770 submission
• Professional hosts are not subject to Cedolare Secca and receive full payouts
• If your status changes, update your account details promptly
• The definition of "property" under Italian law can affect your classification—consult a tax advisor if uncertain