What is the so-called Cedolare secca?
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.
26% flat-rate tax (cedolare secca) on short-term rentals for multiple properties
Following the last amendment in 2024, several updates for the real estate sector in Italy have been introduced as of January 2026 under the new Legge di Bilancio (Budget Law). One of these concerns the regulations regarding the Cedolare secca (flat-rate tax) regime for short-term rentals in Italy.
Already in 2024, the cedolare secca rate had been set at 21% for the first short-term rental property and increased to 26% starting from the second property rented out.
What are short-term rentals?
The term ‘short-term rental’ (or short-term lease) refers to: ‘a residential lease agreement with a duration not exceeding 30 days, entered into by individuals outside the scope of a business activity.’
The cedolare secca (flat-rate tax) is therefore applicable to short-term rental agreements (not exceeding 30 days), provided that the activity is not carried out as a business. Indeed, it is important to note that within a business framework (pursuant to Art. 1, paragraph 595 of Law 178/2020), the flat-rate tax is strictly excluded.
21% cedolare secca for short rentals of a single property
Even 2026, 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.
Starting from the third property rented out, the activity is classified as a business
The main update for 2026 regarding the Cedolare secca, however, lies in the fact that, with the introduction of the new regulation, short-term rental activity is considered a ‘business activity.’ This entails the mandatory registration for a VAT number (Partita IVA) starting from the third property rented out, regardless of the duration of the contract.
Introduction of CIN: National short-term rental identification code
In addition to the new measures related to the cedolare secca, since 2024 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.
