What is Cedolare Secca for Italian Properties?

Understanding Cedolare Secca

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

Who is Affected by Cedolare Secca?

The Cedolare Secca regulation applies specifically to non-professional hosts. You are considered a non-professional host if you meet the following criteria:

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

If you are eligible for Cedolare Secca, it is important to note that you cannot opt-out of this taxation option according to current Italian regulations.

What This Means for Your Earnings

As a non-professional host subject to Cedolare Secca, Holidu will withhold 21% of your earnings and remit this amount directly to the Italian tax authorities (Agenzia delle Entrate).

Tax Withholding Details

The 21% tax withholding applies to:

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

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

Professional Hosts - No Changes Required

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

• Hold a valid EU VAT ID, or
• Own five or more properties for rent

Professional hosts continue to receive full payments from Holidu with no tax withholding.

Tax Reporting and Documentation

Holidu handles the necessary tax documentation and reporting on your behalf. Here is what you can expect:

F-24 Form

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

Certificazione Unica (CU)

You will receive an annual Certificazione Unica (CU) report by March 16th of the following year. This document details all taxes withheld on your earnings. Please note that the tax document cannot be co-owned; only one name can appear on it.

Modello 770 Form

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

What If Your Status Changes?

If your circumstances change and you become a professional host—either by owning five or more properties or obtaining a valid EU VAT ID—you can request an update to your status. Simply reach out to Holidu to make this change official.

Important Considerations About Property Definition

For Cedolare Secca threshold purposes, the definition of "property" depends on the cadastral and legal autonomy of the units involved. Even if you have registered multiple apartments in Holidu, they may still count as a single property under Italian law.

If you are uncertain about how your properties are classified or whether you meet the criteria for Cedolare Secca, we recommend consulting with your tax advisor to ensure you have the correct tax status.

Summary

Cedolare Secca is a straightforward taxation system for non-professional short-term rental hosts in Italy. With a 21% tax withholding rate, Holidu manages the process and ensures all required documentation is submitted to Italian tax authorities on your behalf. If you are a professional host with a VAT ID or five or more properties, this regulation does not apply to you.