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 for stays of up to 30 days are subject to a 21% income tax rate on their earnings.

Who Is Affected by Cedolare Secca?

The regulation applies specifically to non-professional hosts. You are classified as 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 (do not have a valid EU VAT ID)
• You do not have a commercial registration number

If you are eligible for Cedolare Secca, current Italian regulations do not allow you to opt out of this tax withholding system.

What Does Cedolare Secca Mean for Your Payouts?

For non-professional hosts, Holidu withholds 21% of your earnings and remits the amount directly to the Italian tax authority (Agenzia delle Entrate). This withholding applies to your gross payout amount before any VAT or Holidu fees are deducted.

What Is Subject to the 21% Withholding?

The 21% tax applies to:

• Nightly accommodation fees
• Cleaning fees
• Towel fees and other extra charges you add
• Any other additional fees charged to 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 are classified as a professional host, Cedolare Secca does not apply to 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
• Three or more properties for rent

Tax Reporting and Required Forms

Holidu manages your tax reporting and documentation on your behalf. You will receive the following tax documents:

F-24 Form

The F-24 form is used to remit the withheld taxes to the Italian tax authority on a monthly basis. Holidu handles this submission for you.

Certificazione Unica (CU) Annual Report

You will receive an annual Certificazione Unica (CU) report by 16 March of the following year. This report details all taxes withheld on your earnings from the previous year. Important note: the tax document cannot be co-owned. Only one name can appear on your CU report.

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 and ensures compliance with Italian tax regulations.

What If Your Status Changes?

If your hosting status changes, you must update your account details immediately. For example, if you become a professional host by acquiring a third property, obtaining a valid VAT ID, or obtaining a commercial registration number, your tax classification will change and Cedolare Secca may no longer apply to you.

Keeping your account information current ensures you are taxed correctly according to your current status.

Understanding the Property Definition

It is important to understand that for Cedolare Secca purposes, the definition of "property" depends on the cadastral and legal autonomy of the units involved. This means that even if you list multiple apartments in Holidu, they may still count as a single property under Italian law.

If you are uncertain about how many properties you own for tax classification purposes, we recommend consulting with your tax advisor. They can provide guidance specific to your situation and region. Our local team in Italy is also familiar with how this regulation typically applies in different regions and can provide general guidance as a starting point.

Key Takeaways

• Non-professional hosts with 3 or fewer properties, no VAT ID, and no commercial registration number are subject to Cedolare Secca
• Holidu withholds 21% of your gross earnings and remits it to the Italian tax authority
• The withholding applies to accommodation fees, cleaning fees, and all additional charges you set
• You receive a CU report annually for tax filing purposes
• Holidu handles all tax form submissions on your behalf
• Professional hosts are not affected by this regulation and receive full payouts
• Update your account immediately if your hosting status changes