Short-term rent 21% Withholding Tax for Italian Hosts: What You Need to Know for your 2025 tax filing

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.

Who Qualifies as a Non-Professional Host?

Non-professional hosts are typically those who:

• Rent fewer than five short-term rental properties, and
• Do not carry out the rental business through an Italian registered business **VAT number) (Partita IVA). **

Note on recent updates: From tax year 2026, the threshold beyond which short-term rental activity is treated as a commercial business has dropped from 4 to 2 residential units. See the Agenzia delle Entrate — Cedolare secca page for current rules.

What Income Is Subject to Withholding?

The 21% withholding applies to the gross payout, before deducting any commission applied by the intermediary, VAT, and any co-host share. This includes:

• Nightly rates
• Cleaning fees
• Any additional charges billed through the intermediary.

What Is Not Subject to Withholding?

Certain amounts are excluded from the withholding requirement, including:

• Tourist taxes (tassa di soggiorno), if they are collected and passed through by the platform, the real estate agent or other intermediary

Do I Still Need to File a Tax Return?

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) using the Modello Redditi PF 2026 (Agenzia delle Entrate). 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 happens if I Rent an Italian Property through an Intermediary?

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.

What If I Didn’t Choose the Flat Tax Option?

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.

What Tax Forms Will an Intermediary Issue?

Intermediaries are expected to handle the following:

• F24 filings: Monthly remittance of withheld tax to the Agenzia delle Entrate via the Modello F24
• 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.

 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.

Need Help Filing Your Taxes in Italy?

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.

Disclaimer: Airbnb® and Booking.com® are registered trademarks of their respective owners. ItalianTaxes.com is not affiliated with or endorsed by them.