In 2024, the Italian cedolare secca rises to 26% for short rentals starting from the second property

The Italian cedolare secca (Art. 3 of Legislative Decree no. 14.3.2011 23) is the optional replacement tax scheme income arising from the lease of housing, which replaces the IRPEF, and registration and stamp duties relating to the lease.
The so-called cedolare secca scheme can be chosen only by the owner person (and not by the renters) at the time of contract registration.

In 2024

How does cedolare secca change for short rentals of multiple apartments

Starting from January 2024, as written in Article 18 of the Budget Bill to be approved in the Italian parliament by December 2023, the rate is expected to increase from 21% to 26% in case of a “short lease destination of more than one apartment, for each tax period”.

In short, therefore, the increase of the flat tax would concern housing leases of no more than 30 days, when the lessor intended for the short lease from two apartments up, while the possibility of applying the coupon to 21% would remain valid for those who rent a single apartment.

It is always for short rents: “a lease of real estate for residential use, of a duration not exceeding 30 days, stipulated by natural persons, outside the exercise of business activities”.

It is also important to remember that over the four apartments, we fall into the business sphere ex art. 1 Co. 595 of L 178/2020, so the cedolare secca is excluded.

21% cedolare secca for short rentals of a single property

In 2024, the cedolare secca at 21% will continue to apply to those who use the regime of short leases for a single housing unit belonging to the cadastral categories between A1 to A11 (excluding the A10 – offices or private practice). All owners of the right to property can then continue to rent a single property without being subject to tax.

Those who rent more than one in the course of the year will suffer an increase of five percentage points on all the others, starting from the second.

Introduction of CIN: National short-term rental identification code

In addition to the new measures related to the cedolare secca, the draft Budget Bill provides for the introduction of the CIN, the National Identification Code, whose purpose is to reduce the submerged in the field of short leases under 30 days.

According to the new legislation, the code will be assigned automatically by the Italian Ministry of Tourism after the submission of an application, for each unit leased for tourist purposes. In addition, each property with an identification code will be included in a special database to know in detail all the extra hotel offers and monitor the use of properties.

Those who rent their property for short leases will then be required to expose the CIN at the entrance and indicate in each announcement, otherwise a penalty of between 500 and 5,000 euros.