Italy Short-Term Rental Tax 2026: What Hosts Need to Know

Italy’s government is proposing to raise taxes on short-term rentals in a move that could reshape one of Europe’s busiest vacation rental markets. But the plan is still far from becoming law, and it’s already dividing both the governing coalition and the opposition.

🇮🇹 A Proposal, Not a Done Deal

In its draft 2026–2028 budget, the Italian government introduced a measure that would standardize the flat tax on short-term rental income at 26%, replacing the current 21% rate available to individual owners.

If approved, this would effectively end the cedolare secca tax break that smaller hosts have relied on for years. Platforms and intermediaries such as Airbnb and Booking.com would also have to withhold the 26% tax at source and send it directly to the Treasury.

But as of now, this is only a proposal. The draft, part of a broader €18 billion budget package, will move through Parliament in the coming weeks and still requires approval from both chambers before it can become laweuro news.

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Already, it has sparked sharp political debate. Forza Italia, one of Prime Minister Giorgia Meloni’s coalition partners, has publicly opposed the measure, calling it “a mistake that can be corrected.” Deputy Prime Minister Antonio Tajani and Forza’s tourism spokesperson Carlo De Romanis both argued that raising taxes on small landlords would “hurt tourism and limit growth in rural areas”euro news.

Opposition parties have also joined the criticism. The centre-left Democratic Party (PD) described the budget as “a budget with no parent,” while Gaetano Pedullà of the Five Star Movement called it “unacceptable,” accusing the government of “filling the state’s coffers by raising taxes on homeowners”euro news.

💸 What’s Changing and Who It Hits Hardest

The government says the reform aims to simplify the tax system and ensure “equity among taxpayers.” But for many small hosts, it means a higher tax bill — and for some, a question of whether hosting is worth continuing at all.

Under current rules:

Hosts renting one property can apply the 21% cedolare secca rate.
Income from a second property is taxed at 26%.

The new rule removes that distinction, setting a uniform 26% rate for all short-term rental income.

For casual hosts, that’s a 5-point increase in taxes — a bigger jump than it may look on paper, especially when layered on top of cleaning costs, platform fees, and local tourism levies.

For professional property managers, however, the impact is smaller. Most already operate under higher or corporate tax brackets and can more easily absorb administrative or compliance changes.

In other words, this proposal might not just raise revenue — it could also reshape the market, further consolidating it around professional operators.

🧾 A New Tax Layer in a Growing Regulatory Stack

This proposed change doesn’t exist in isolation. It’s part of a wider tightening of Italy’s short-term rental framework — one that’s adding new obligations at both national and local levels.

Recent examples include:

The rollout of the National Identification Code (CIN) for all short-term rental listings.
The establishment of the national accommodation database (BDSR), which requires hosts to register each property.
Local-level reporting requirements, including guest registration and safety certifications.

Taken together, these measures reflect a policy environment that increasingly favors hosts and managers with the infrastructure and scale to stay compliant.

Smaller, part-time operators — who may have treated hosting as an easy side business — now face steeper costs, more paperwork, and stricter scrutiny.

🔁 The Self-Check-In Episode as a Warning

The government’s now-reversed ban on self-check-in, introduced in December 2024 and overturned in June 2025, illustrates this growing divide.

That ban, meant to curb illegal rentals, required in-person guest verification. But it backfired:

For small or remote hosts, it made operations nearly impossible without hiring staff or being physically present.
For larger property managers, it was manageable — they already had teams or partners on the ground.

When the courts reversed the ban, they acknowledged that technology-based systems for ID verification were sufficient. But the episode left a mark: it showed how policies meant to regulate the sector often end up disproportionately burdening smaller hosts.

🧩 Where the Market Stands Now

If the 26% tax proposal becomes law, it would take effect as early as January 2026.
For policymakers, the goal is clear: increase fiscal revenue, reduce loopholes, and push some properties back into the long-term housing market.

For the industry, though, the impact will be uneven:

Large property managers will adapt through systems and scale.
Small hosts may struggle or exit the market altogether.

In the long run, Italy’s short-term rental landscape could become more consolidated, more compliant, but less diverse.

What the Italy Short-Term Rental Tax 2026 Proposal Means for Property Managers

Italy’s proposal sits within a broader European context, one of tightening regulation, rising taxes, and a gradual shift toward professionalization.

While the details of the tax reform will depend on ongoing parliamentary negotiations and potential amendments, the direction is unmistakable:
The age of casual hosting in Italy is fading, and a more structured, professional era of short-term rental management is taking its place.

Uvika Wahi

Uvika Wahi is the Editor at RSU by PriceLabs, where she leads news coverage and analysis for professional short-term rental managers. She writes on Airbnb, Booking.com, Vrbo, regulations, and industry trends, helping managers make informed business decisions. Uvika also presents at global industry events such as SCALE, VITUR, and Direct Booking Success Summit.