Short-Term Rentals: 26% flat tax on contracts managed through portals and reale estate agency
The 2026 Italian Budget Law introduces a significant change regarding income generated from short-term rentals.
The measure affects property owners and managers of tourist accommodations, as the flat tax rate (cedolare secca) increases from 21% to 26% for all contracts finalized through real estate agencies or online platforms, such as Airbnb, Booking and similar services.
For short-term rentals managed directly by the owner, without the involvement of agencies or online platforms, the tax rate will remain at 21%.
Previously, the 21% rate applied only to the first property rented out on a short-term basis, while a 26% rate applied from the second property up to a maximum of four, beyond which the activity is considered entrepreneurial.
With the new Budget Law, all income from short-term rentals (up to a maximum of four properties and therefore within the scope of personal and private activity) will now be subject to a 26% tax rate.
Who will be affected
The new 26% rate will apply to:
- Personal owners renting one or more properties for periods of less than 30 consecutive days, using agencies or online platforms;
- Managers and companies acting as tax intermediaries, collecting rent on behalf of property owners.
Those who manage their own short-term rentals independently, without intermediaries and without using web platform, will continue to apply the 21% rate.
A changing balance
The tax increase is expected to affect the profitability of short-term rentals, already reduced by operating costs.
In addition to the new 26% rate, owners typically face:
- Agency or platform commissions, averaging around 30% of the rental price;
- Utility costs, usually included in the rental fee (internet, electricity, water, gas, waste tax);
- General maintenance and seasonal upkeep.
As a result, the net return for many property owners is likely to be lower than expected.
An open question
This change to the flat tax represents a new chapter in the ongoing debate over the role of short-term rentals in the Italian housing market.