How to run your
​Airbnb in Italy

Airbnb and short lets are great ways to monetise on a holiday home or residential property, in fact more and more investors are looking for property in Italy fit for Airbnb! If you have thought of running your Airbnb in Italy, make sure you check this article first!

What is a holiday let?

According to the Italian tax Law, a holiday let is a rent contract lasting 30 days or less. The contract, unlike commercial and residential contract, is very flexible and it does not require any registration at the local tax office.

As a host what do I have to do?

​As a host you are basically required to:
Provide the check-in service. Let the guest sign the accommodation contract. Communicate within 24 hours from the check-in the Identity of the guests to the Questura Issue the receipt of the stay
Clean the  apartment/house. You are not required to deal with the “City tax” if you operate through an online platform, otherwise you should also collect and pay such tax based on the local municpality rules.

Can I offer other services
than just a let?

​If you run your Airbnb as a non professional, you can only provide cleaning of the premises and fresh linens; this rule is strictly enforced by the Italian authorities and any extra service provided will be a presumption of a business activity. If you want to provide extra service you are then required to operate as a business.

Can I deduct the
Airbnb fee?

Unless you operate as a professional business you cannot deduct any cost, including the Airbnb fee.

What is the advantage of
operating a business?

Operating as a business allows you to:

Provide extra services other than accommodation, write off costs and pay taxes on your real profit, access to public grants and loans to purchase the property.

As a business you can write off costs associated with the portal fee, the property manager fee, as well as cleaning and fittings of the property.

Furthermore, you can opt for the “regime forfettario” and benefit of a flat 15% (5% if it is a new business) tax rate up to € 65,000 of revenue.

How do I setup
my business?

You can setup your Aribnb in different ways:

  • B&B
  • Affittacamere
  • Agriturismo
  • Casa Vacanze

The required compliance is the following:

  • Get your Partita IVA
  • Register at the local Chamber of Commerce
  • Register at INPS
  • Register your property at the local Comune*

Note: The following Italian regions require every Airbnb activity to be communicated to the local Comune run as a non professional business: Veneto, Liguria, Sardegna, Abruzzo, Emilia Romagna, Lazio, Lombardia.

How do I pay taxes on my Airbnb income?

Just like any other source of income, you must file your annual tax return including the income made of your holiday lets. If you rent the property you own you should disclose this source of income in the “Property income” section, whereas if you sub-let the property you must include that income in the “Other income” section.

You can opt for two types of taxes:

  • IRPEF
  • Cedolare Secca

IRPEF requires you to pay the progressive tax rates on 95% of the income made (5% is a tax free reduction to compensate costs incurred). Cedolare Secca taxes your whole income at 21% flat.

Usually “Cedolare Secca” is a more efficient option; unfortunately, you cannot claim any deductible items against it. Often times (especially if you renovated the property) the IRPEF rates is a better option as you can claim house renovation costs against taxes.

If the online portal already deducted a 21% tax at source, you can credit it against your tax liability.

How can the tax office find out about my Airbnb income?

Since 2017, every property manager and online portal is required to file an annual return disclosing the total amount of rents earned by each host during a tax year. On top of that the online portals must deduct a 21% tax at source; it is therefore very likely that the tax office will find out about your income source.

What happens if
I do not file?

If you do not file your taxes you expose yourself to a minimum liability of € 250 up to € 1024 for not filing, on top of a minimum fine of 120% of any tax due. The tax office knows if you rented your property through an online portal as the portal itself sent a recap return (Certificazione Unica) to the tax office.

How can we help you?

Accounting can help you in different stages of your Airbnb business, we can: Draft the accommodation contract Register your property on the “Questura” portal Evaluate the convenience of operating as a Business Set up your business Provide the ongoing accounting and tax compliance service File your annual return Provide support for your tax payments Do you want to stay updated with the latest Italian tax developments? Like our Facebook page! Are you interested in learning more? Check out airbnb guide-book for starting a short term rental business in Italy, or our Italian’s home buyer guide.
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