Cedolare Secca is an Italian flat-rate income tax withholding system for short-term rentals. Under Law Decree 50/2017, as amended by the 2024 Budget Law, non-professional hosts renting out properties in Italy for stays of up to 30 days pay a 21% tax on their rental earnings. Holidu withholds this amount from your payout and sends it to the Italian tax authority, Agenzia delle Entrate.

Who is affected by Cedolare Secca?

The regulation applies to non-professional hosts. You are considered a non-professional host if you meet all of the following conditions:

• You rent out fewer than three properties on a short-term basis (this rule takes effect on 1 January 2026).
• You are not registered for VAT and do not have a valid EU VAT ID.
• You do not have a commercial registration number.

If you qualify for Cedolare Secca, current regulations do not allow you to opt out.

How does the 21% withholding work?

For non-professional hosts, Holidu withholds 21% of your earnings and remits it directly to Agenzia delle Entrate. The tax is calculated on the gross payout amount, before any VAT or Holidu fees are deducted.

The withholding applies to all amounts you receive from guests, including:

• Accommodation payments
• Cleaning fees
• Towel fees
• Any other extra fees you charge

The only exception is tourist tax included in the guest price.

Does Cedolare Secca affect professional hosts?

No. Professional hosts are not affected by this law, and their payouts from Holidu do not change. You are considered a professional host if you meet any of the following conditions:

• You hold three or more properties for rent.
• You have a valid EU VAT ID.
• You have a commercial registration number.

What tax forms does Holidu handle for me?

Holidu prepares and submits the required tax reporting forms on your behalf. These include:

• F-24: Holidu uses this form to pay the withheld taxes to the Italian tax authority each month.
• Certificazione Unica (CU): You receive this annual report by 16 March of the following year. It shows the taxes withheld from your earnings. The document can only be issued in one name, so it cannot be co-owned.
• Modello 770: Holidu submits this form to Agenzia delle Entrate by 31 October each year. It reports the taxes withheld for the previous period.

What if my hosting status changes?

Your tax status may change if you become a professional host. This can happen if you manage three or more properties, obtain a valid EU VAT ID, or obtain a commercial registration number. If your status changes, update your account details so that your payouts and tax reporting are handled correctly.

How is a property counted for the Cedolare Secca threshold?

Under Italian law, the definition of a "property" depends on its cadastral status and legal autonomy. Several apartments listed separately on Holidu may still count as one property for tax purposes. If you are unsure how the rules apply to your situation, consult a qualified tax advisor.

Key points to remember

• Cedolare Secca is a 21% tax withheld by Holidu from the gross payout of non-professional hosts in Italy.
• The withholding covers accommodation fees and extra fees such as cleaning and towel fees.
• Professional hosts with three or more properties, a valid EU VAT ID, or a commercial registration number are not affected.
• Holidu handles the F-24, CU, and Modello 770 tax forms.
• Keep your account details up to date if your hosting status changes.