The 2026 Italian Budget Law introduced a significant change in short-term rental regulations, directly affecting anyone who rents out their properties privately for periods of less than 30 days.
The maximum number of properties that may be used for short-term rentals without being considered a business activity has been reduced. The short-term rental tax scheme applies to a maximum of two properties per tax year, with a flat rate of 21% for the first property and a flat rate of 26% for the second. From the third property onward, the owner is deemed to be conducting a business activity, in accordance with Article 2082 of the Civil Code, with the resulting obligation to register for VAT and apply the rules for business activities. The presumption of a business activity applies regardless of the duration of the contracts, the rental channel used, and whether the activity is carried out independently or through intermediaries.
The amendment lowers the threshold from 4 to 2 properties and has direct consequences for landlords' tax and administrative obligations. This makes it absolutely essential to carefully evaluate your own situation and adapt to the new rules as quickly as possible.
One of the objectives of the new tax scheme is to increase the supply of long-term rental properties. It is expected that some owners with just three or little more rental properties will offer their surplus properties for long-term rental. Others may choose to put their surplus apartments up for sale, which will likely create opportunities for new investors in the short-term rental market.
