In Italy, the short-term rental market is set to undergo significant regulatory changes due to the Anticipatory Decree-Law and the new Budget Law, which are currently in the final confirmation phase after weeks of negotiations and amendments in Parliament.
Here are the three main new features affecting this sector
Increase in Flat Tax
One of the most significant changes is the increase in the flat tax for those who own more than one property for tourist rentals, i.e., rentals of less than 30 days. This tax rate will rise from 21% to 26%. It’s important to note that once the threshold of four properties is exceeded, the activity will be considered entrepreneurial, requiring the opening of a VAT number. This flat tax increase applies to all the same owner’s properties designated for tourist rentals, marking a significant step in the taxation of this sector.
Introduction of the National Identification Code (CIN)
A new requirement will be introduced: the CIN, essential for those wishing to undertake tourist rentals. This nationally unified code will replace the various codes currently in use in different regions. Furthermore, it is possible that in the future the Italian state may require OTAs (Online Travel Agencies such as Booking, Airbnb, etc.) to force owners to insert this code in their ads. The CIN aims to improve the control and regulation of the sector by the authorities.
Fire Safety Regulations for Tourist Rentals
Another likely new feature concerns safety: the installation of fire extinguishers and fire detectors in accommodations designated for short-term rentals is expected to become mandatory. This measure would greatly increase the safety of these structures, ensuring greater protection for both owners and guests.
Reasons for the Italian Government’s
Interventions Fiscal Control and Fight against Tax Evasion
One of the main reasons behind the increase in the flat tax and the introduction of the National Identification Code (CIN) is the government’s desire to strengthen fiscal control. With the growing number of short-term rentals, often managed through online platforms, the risk of tax evasion has increased. The increase in the flat tax rate and the introduction of the CIN are measures designed to counter this trend, ensuring greater transparency and better traceability of transactions.
The CIN also aims to unify and simplify the regulation of short-term rentals, which until now was managed at the regional level with different and sometimes conflicting regulations. A national code should make it easier for owners to comply with the laws and for authorities to exercise more effective control.
Safety of Accommodations
for Short-Term Rentals The likely introduction of strict fire safety regulations is motivated by concern for the safety of guests and owners. This move is in line with international trends to ensure high safety standards in accommodation facilities.
The Role of Federalberghi and the Hotel Lobby Pressures to Limit Short-Term Rentals
Federalberghi, together with the hotel lobby, has played a significant role in urging the government to introduce stricter regulations on short-term rentals. This organization, representing the interests of the traditional hotel sector, has long expressed concerns about the impact that unregulated short-term rentals have on the hotel market, claiming unfair competition and a lack of uniform standards in terms of safety and quality.
The Housing Crisis as an Argument: Another point raised by Federalberghi and its allies concerns the housing crisis. They argue that the proliferation of short-term rentals, especially in tourist cities, is reducing the availability of long-term housing for residents, thus contributing to the housing crisis. This position aims to strengthen the argument for stricter regulation of short-term rentals.
Despite the concerns raised by Federalberghi and others, the role that short-term rentals actually play in the housing crisis remains debated. As we have explored in other articles, the issue is complex and multifactorial, and it is not correct to attribute the housing crisis exclusively to short-term rentals. However, it is undoubtedly positive that a rapidly growing sector such as short-term rentals is regulated more effectively. These new regulations, while not being a definitive solution to the housing crisis, will contribute to creating a fairer, safer, and more transparent environment for both owners and customers of this increasingly popular form of accommodation.