What is Cedolare Secca for Italian Properties?

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 to non-professional hosts, meaning hosts who meet any of the following criteria:

• Have 3 or fewer properties rented out short-term (effective 1 January 2026)
• Are not registered for VAT (without a valid EU VAT ID)
• Do not have a commercial registration number

If you are eligible for Cedolare Secca, current regulations do not allow opting out. However, if you qualify as a professional host—meaning you own three or more properties, hold a valid VAT ID, or have a commercial registration number—you are not subject to this withholding.

What Does Cedolare Secca Mean for You as a Host?

For non-professional hosts, a 21% withholding tax is applied to your earnings. Here's how it works:

• 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
• Cleaning fees, towel fees, and any other extra fees you charge are also subject to the withholding
• The only exception is tourist taxes included in the guest price

Professional hosts are not affected by this law. They continue to receive their full payouts from Holidu without any withholding.

Tax Reporting and Forms

Holidu handles the tax reporting and documentation for you. The following forms are involved in this process:

F-24 Form

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

Certificazione Unica (CU) Report

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

Modello 770 Form

Holidu submits the Modello 770 form to Agenzia delle Entrate by 31 October each year, reporting the taxes withheld for the previous period.

What If My Status Changes?

If your status changes—such as becoming a professional host by holding three or more properties, obtaining a valid VAT ID, or obtaining a commercial registration number—make sure to update your account details as soon as possible. This will ensure your tax withholding status is adjusted accordingly.

Understanding the Definition of Property

For the Cedolare Secca threshold, the definition of "property" depends on the cadastral and legal autonomy of the units involved. Even if multiple apartments are registered in Holidu, they may still count as one property under Italian law. When in doubt, check with your tax advisor.

Our local team in Italy is familiar with how this regulation typically applies in different regions and can help clarify your specific situation if you need guidance on how your properties are classified.