What is Cedolare Secca for Italian Properties?

Understanding Cedolare Secca

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 specifically to non-professional hosts. You are considered a non-professional host if you meet all of the following 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. This means the withholding applies automatically to your rental income.

How Does Cedolare Secca Work?

Holidu withholds 21% of your earnings and remits it directly to the Italian tax authority (Agenzia delle Entrate). The 21% tax applies to the gross payout amount before any VAT or Holidu fees are deducted.

The withholding includes:

• Base rental income
• 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 the withholding.

Professional Hosts Are Not Affected

If you qualify as a professional host, Cedolare Secca does not apply to you. You are considered a professional host if you have:

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

Professional hosts continue to receive their full payouts from Holidu with no changes to how payments are processed.

Tax Reporting and Documentation

Holidu handles the necessary tax reporting on your behalf. Here is what you need to know about the documentation:

Monthly Tax Remittance

The F-24 form is used to remit the withheld taxes to the Italian tax authority on a monthly basis.

Annual Tax Certificate

You receive an annual Certificazione Unica (CU) report by 16 March of the following year. This report details the taxes withheld on your earnings. Please note that the tax document cannot be co-owned—only one name can appear on it.

Government Filing

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.

What If Your Status Changes?

If your status changes and you become a professional host, you must update your account details. You become a professional host if you:

• Obtain three or more properties for rent
• Register for a valid EU VAT ID
• Obtain a commercial registration number

Updating your information promptly ensures that the correct tax treatment is applied to your rental income going forward.

Important Considerations About Property Definitions

For the Cedolare Secca threshold, the definition of "property" depends on the cadastral or legal autonomy of the units involved. Even if you register multiple apartments on Holidu, they may still count as one property under Italian law. This distinction is important when determining whether you meet the threshold of three or more properties.

When in doubt about how your properties are classified, consult with your tax advisor. Our local team in Italy is familiar with how this regulation typically applies in different regions and can provide guidance based on your specific situation.