What is Cedolare Secca for Italian Properties?

Cedolare Secca is an Italian income tax withholding system that applies to short-term rental hosts classified as non-professional hosts. Under Law Decree 50/2017, as amended by the 2024 Budget Law, non-professional hosts renting out properties in Italy are subject to a 21% income tax rate on earnings from stays of up to 30 days.

Who is affected by Cedolare Secca?

The regulation applies to non-professional hosts, meaning you fall under this category if you meet the following criteria:

• You own 3 or fewer properties rented out short-term (effective 1 January 2026)
• You are not registered for VAT (without a valid EU VAT ID)
• You do not have a commercial registration number

If you're eligible for Cedolare Secca, current regulations do not allow you to opt out of this withholding system.

What does Cedolare Secca mean for hosts?

For non-professional hosts, Holidu withholds 21% of your earnings and remits it directly to the Italian tax authority (Agenzia delle Entrate). This means you receive 79% of your gross payout amount.

What is included in the 21% withholding?

The 21% tax applies to:

• The gross payout amount before any VAT or Holidu fees
• Cleaning fees you charge
• Towel fees and other extra fees

The only exception is tourist taxes included in the guest price, which are not subject to the withholding.

Professional hosts are not affected

If you qualify as a professional host, Cedolare Secca does not apply to you. Professional hosts are those with:

• A valid EU VAT ID
• A commercial registration number
• Three or more properties for rent

Professional hosts continue to receive their full payouts from Holidu with no changes to their payment structure.

Tax reporting and forms explained

Holidu handles the necessary tax reporting forms on your behalf. Understanding these forms helps you stay compliant with Italian tax regulations.

F-24 Form

The F-24 form is used to remit the withheld taxes to the Italian tax authority on a monthly basis.

Certificazione Unica (CU) Report

You receive an annual Certificazione Unica (CU) report by 16 March of the following year. This document details the taxes withheld on your earnings for the previous calendar year. Important to note: the tax document cannot be co-owned — only one name can appear on it.

Modello 770 Form

Holidu submits the Modello 770 form to Agenzia delle Entrate by 31 October each year, reporting the taxes withheld for the previous period.

What if your host status changes?

If your status changes and you transition to a professional host by holding three or more properties, obtaining a valid VAT ID, or obtaining a commercial registration number, make sure to update your account details promptly. This ensures your tax treatment is correctly adjusted going forward.

Understanding what counts as a property under Italian law

For the Cedolare Secca threshold, the definition of "property" depends on the cadastral and legal autonomy of the units involved. Even if multiple apartments are registered in your Holidu account, they may still count as one property under Italian law. When determining your status, it is crucial to verify the legal structure of your properties.

When in doubt about whether your properties qualify as separate units under Italian tax law, check with your tax advisor. Regional variations exist in how this regulation is applied, and professional guidance ensures your classification is correct.