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 you fall under this category if you meet any of these conditions:

• 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 of this withholding system.

What does Cedolare Secca mean for your earnings?

If you qualify as a non-professional host, 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.

The following fees are also subject to the withholding:

• 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, nothing changes for you. You continue to receive your full payouts from Holidu without any withholding. You are considered a professional host if you have any of the following:

• A valid EU VAT ID
• A commercial registration number
• At least three properties for rent

Tax reporting and forms you will receive

Holidu handles the tax reporting process for you. Here is what you need to know about the forms and documents you will receive:

F-24 Form

The F-24 form is used to remit the withheld taxes to the Italian tax authority on a monthly basis. Holidu manages this submission on your behalf.

Certificazione Unica (CU) Report

You will receive an annual Certificazione Unica (CU) report by 16 March of the following year. This document details the taxes withheld on your earnings. Important to note: 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. This form reports the taxes withheld for the previous period.

What happens if your status changes?

If your status changes and you become a professional host, make sure to update your account details. You become a professional host when you:

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

Updating your information promptly ensures your tax withholding status is correctly applied going forward.

Important note about property definitions

For the Cedolare Secca threshold, the definition of "property" depends on the cadastral and legal autonomy of the units involved. Even if you have multiple apartments registered in Holidu, they may still count as one property under Italian law. When in doubt, consult with your tax advisor. Your local tax professional can provide guidance specific to your situation and region.