If you're a non-professional Airbnb host renting property in Italy, a significant tax update went into effect in January 2024. Italian law now requires Airbnb (and any intermediary) to apply a 21% withholding income tax (cedolare secca) on qualifying rental income. Here's a complete breakdown of what it means for you and how to stay compliant.
What Changed?
Under Article 4, paragraph 5-bis, of Law Decree 50/2017, as amended by the 2024 Budget Law, real estate agents and platforms like Airbnb must withhold 21% income tax on earnings of non-professional Hosts for short-term stays (30 days or less).
This tax applies only to listings located in Italy and is automatically withheld by the intermediary (like Airbnb and Booking.com) and remitted to the Agenzia delle Entrate (Italian Revenue Agency). Hosts will receive an annual certificate (Certificazione Unica) from the intermediary (e.g., Airbnb) to include in their Italian tax returns.
View the original Airbnb article in Italian
Who Qualifies as a Non-Professional Host?
Non-professional hosts are typically those who:
- Rent fewer than five properties, and
- Do not have a registered business (VAT) number (Partita IVA)
What Income Is Subject to Withholding?
The 21% withholding applies to the gross payout, before deducting Airbnb service fees, VAT, and any co-host share. This includes:
- Nightly rates
- Cleaning fees
- Any additional charges billed through Airbnb
What Is Not Subject to Withholding?
Certain amounts are excluded from the withholding requirement, including:
- Tourist taxes (tassa di soggiorno) collected and passed through by the platform
- Co-host payouts
- Income from listings outside of Italy
Do I Still Need to File a Tax Return?
Yes: even if Airbnb withholds 21% on your behalf, you are still legally required to file an annual Italian income tax return (dichiarazione dei redditi). The amount withheld is not necessarily your final tax liability. You must report your total rental income, reconcile any tax already paid (including what appears in your Certificazione Unica), and declare any additional income or deductible expenses. Filing your return ensures compliance and may allow you to claim deductions or credits, especially if your effective tax rate is lower than 21%.
What to Expect Based on Your Situation
If You Have One Listing
Airbnb will contact you by email and provide 14 days to confirm your tax status. You must indicate whether you want Airbnb to withhold the 21% tax or declare yourself a professional Host. If no action is taken, Airbnb will automatically start withholding tax from future earnings.
If You Have 2–4 Listings
You must log into your Airbnb account and actively confirm that you want Airbnb to withhold taxes. If you opt out (e.g., you are a professional Host), you will be responsible for handling tax reporting independently.
What If I Didn’t Choose the Flat Tax?
Even if you opted for the ordinary tax regime instead of the flat tax (cedolare secca), Airbnb is still required to withhold 21% from your earnings. In that case, the amount withheld acts as a tax advance and will need to be reconciled in your annual return.
When Will the Withholding Start?
Airbnb will begin withholding:
- Immediately upon your confirmation
- Or, if you have one listing and take no action, after the 14-day window closes
Withholding applies to all future payouts, regardless of when the booking was made.
Example: If you confirm Airbnb should withhold taxes on January 5, 2024, withholding starts from that date even on earnings from 2023 bookings.
What Tax Forms Will Airbnb Issue?
Airbnb will handle the following:
- F24 filings: Monthly remittance of withheld tax to the Agenzia delle Entrate
- Certificazione Unica (CU): Annual report of your withheld taxes, issued by March 16 each year
- Modello 770: Annual report to the Agenzia delle Entrate by October 31
The Certificazione Unica is especially important, as you’ll need to submit it when filing your Italian tax return.
How Do I Opt In or Out of Withholding?
To manage your tax withholding status:
- Log into your Airbnb account
- Go to Account > Taxes > Tax Withholding
- Follow the instructions to confirm or update your selection
If your status changes later (e.g., you become a professional Host), you must return to the same section to opt out. Airbnb does not automatically adjust your tax status.
Key Scenarios to Know
- You become a professional Host: You must manually opt out. Airbnb will not stop withholding automatically.
- You exceed 4 listings: You remain responsible for opting out.
- You register for VAT: Again, you must manually manage withholding settings.
Where Can I View My Withholding Details?
All tax withholding transactions are recorded in your Transaction History within Airbnb. Your Certificazione Unica will also be provided annually, summarizing all withheld tax amounts.
Final Thoughts
This new tax framework introduces more automated compliance but it also places responsibility on Hosts to keep their tax settings updated. Misalignment between your actual status and what Airbnb reports could lead to over- or under-reporting.
Need Help Filing Your Taxes in Italy?
At ItalianTaxes.com, we assist Airbnb Hosts—especially non-resident property owners—in navigating Italian tax obligations. Whether you’re interpreting your Certificazione Unica, filing under the flat tax regime, or declaring through the ordinary regime, our expert team can help.
Contact us today for tailored support or to schedule a free consultation with one of our Italian tax specialists.
