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?

The regulation applies to non-professional hosts, meaning hosts who meet any of the following criteria:

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

If you are eligible for Cedolare Secca, current regulations do not allow opting out.

What does this mean for the host?

For non-professional hosts, Holidu withholds 21% of earnings and remits it directly to the Italian tax authority (Agenzia delle Entrate). Hosts who qualify as professional—those with three or more properties, a valid VAT ID, or a commercial registration number—are not subject to this withholding.

The 21% tax applies to the gross payout amount before any VAT or Holidu fees. Cleaning fees, towel fees, and any other extra fees you charge are also subject to the withholding. The only exception is tourist taxes included in the guest price.

Professional hosts are not affected by this law. Nothing changes for them, and they continue to receive their full payouts from Holidu.

Tax reporting and forms

Holidu handles the tax reporting forms on your behalf:

• The F-24 form is used to remit the withheld taxes to the Italian tax authority on a monthly basis
• You receive an annual Certificazione Unica (CU) report by 16 March of the following year, detailing the taxes withheld on your earnings. The tax document cannot be co-owned—only one name can appear on it
• 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 my status changes?

If your status changes and you become 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.

Important note about property definitions

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 Holidu, they may still count as one property under Italian law. When in doubt, check with your tax advisor—and if you need a starting point, our local team in Italy is familiar with how this regulation typically applies in different regions.