What is Cedolare Secca for Italian Properties?

Understanding Cedolare Secca

Cedolare Secca is an Italian income tax withholding system designed for short-term rental hosts who are classified as non-professional hosts. Under Law Decree 50/2017, which was amended by the 2024 Budget Law, non-professional hosts renting out properties in Italy through platforms like Holidu are subject to a fixed 21% income tax rate on their earnings from stays of up to 30 days.

Who is Affected by Cedolare Secca?

The Cedolare Secca regulation applies specifically to non-professional hosts. You are considered a non-professional host if you meet the following criteria:

• You own 3 or fewer properties rented out short-term (effective January 1, 2026)
• You are not registered for VAT (you do not have a valid EU VAT ID)

If you are eligible for Cedolare Secca, it is not possible to opt-out of this tax option according to current Italian regulations. However, professional hosts—those with five or more properties or a valid EU VAT ID—are not subject to this withholding system and continue to receive full payments from Holidu.

What Does This Mean for Your Payouts?

If you are a non-professional host subject to Cedolare Secca, Holidu will withhold 21% of your earnings and remit these taxes directly to the Italian tax authorities (Agenzia delle Entrate).

Important details about the withholding calculation:

• The 21% tax is calculated on your gross payout amount before any VAT or Holidu fees
• Cleaning fees, towel fees, and other extra fees you charge are all subject to tax withholding
• The only exception is tourist taxes included in the guest price, which are not subject to withholding

Tax Reporting and Documentation

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

• F-24 Form: Used to remit the withheld taxes to Italian tax authorities on a monthly basis
• Certificazione Unica (CU) Report: You will receive an annual report by March 16th of the following year detailing the taxes withheld on your earnings. Please note that this tax document cannot be co-owned; only one name can appear on it
• Modello 770 Form: Holidu will submit this form to the Agenzia delle Entrate by October 31st each year, reporting the taxes withheld for the previous period

What If Your Status Changes?

Your eligibility for Cedolare Secca may change over time. If your status changes and you become a professional host—either by owning five or more properties or obtaining a valid EU VAT ID—you can request an update to your status by contacting Holidu. This change will affect how your future payments are processed.

Important Considerations About Property Definition

For the purpose of 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 your Holidu account, they may still count as one property under Italian law. If you are uncertain about how your properties are classified, we recommend consulting with your tax advisor to ensure compliance with Italian tax regulations.

Key Takeaways

• Cedolare Secca is a 21% income tax withholding for non-professional short-term rental hosts in Italy
• You are affected if you own 3 or fewer properties and do not have a valid EU VAT ID
• Holidu will automatically withhold and remit the tax to Italian authorities
• You cannot opt-out of Cedolare Secca if you are eligible
• Holidu provides all necessary tax documentation and reporting
• Professional hosts are not affected by this regulation