If you're a non-professional host renting an Italian property on a short-term basis (contracts not longer than 30 days), Italian law requires any intermediary (like Airbnb, Booking.com, VRBO) to apply a 21% withholding tax (ritenuta d’acconto) on qualifying rental income. Here's a complete breakdown of what it means for you and how to stay compliant.
Real estate agents and platforms that collect payments from guests on behalf of non-professional hosts for short-term rental contracts must withhold a 21% income tax.
This tax applies only to listings for properties located in Italy, is automatically withheld by the intermediary (like Airbnb and Booking.com), is remitted to the Italian Revenue Agency (Agenzia delle Entrate) and it represents a tax credit for the property owner. . The hosts will receive an annual tax certificate (Certificazione Unica) from the intermediary (e.g., Airbnb) to include in their Italian tax returns and to deduct the withheld amount as a tax credit.
Non-professional hosts are typically those who:
The 21% withholding applies to the gross payout, before deducting any commission applied by the intermediary, VAT, and any co-host share. This includes:
Certain amounts are excluded from the withholding requirement, including:
Yes: Even if your intermediary 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%.
You want to provide the necessary instructions to your intermediary to let them know if you are or not a professional host and if you are going to accept short-term contracts. If you take no action, you might expect your intermediary to automatically start withholding tax from future earnings.
Even if you opted for the ordinary tax regime through which your rent is taxed based on you’re the ordinary progressive income tax brackets, instead of the flat tax (cedolare secca), your intermediary will still be 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 tax return.
Intermediaries are expected to handle the following:
The Certificazione Unica is especially important, as you’ll need to submit it when filing your Italian tax return.
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 your intermediary reports could lead to over- or under-reporting.
At ItalianTaxes.com, we assist Short-Term Rental 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 streamlined tax platform can help.
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