New rules for short-term rentals in Italy: key updates for 2024

3 December 2024 - Insights

New rules for short-term rentals in Italy: key updates for 2024

This year, the Italian government has introduced a series of new rules for short-term rentals. The goal is to enhance transparency and oversight in a rapidly growing sector that has profoundly reshaped travel and urban living in recent years.

Over the last few years, the popularity of short-term rentals has surged, with more and more tourists choosing this type of accommodation for their vacations. These rentals typically last less than 30 days and offer great flexibility for both travelers and property owners. Fueled by the rapid expansion of digital platforms such as Airbnb and Booking.com, this trend has grown exponentially, posing significant challenges to the traditional hotel industry. According to data from the European Parliament, short-term rentals now represent approximately 25% of tourist accommodation in the European Union.

The summer of 2024 marked a record for the European short-term rental market, with a 21% year-over-year increase in demand in August, as reported by AirDNA. In Italy, the sector generated an impressive €11 billion in revenue in 2023, contributing an additional €44 billion to the national GDP, based on data from AIGAB. Notably, Eurostat ranks Milan, Rome, Florence, Naples and Venice among the top 20 European cities for guest nights at short-stay accommodations offered via major online platforms. Milan and Rome also saw the most significant increases in guest nights, with rises of 60% and 46%, respectively.

New rules for short-term rentals in Italy: what’s changing and how they work

This scenario presents both opportunities and challenges. On one hand, the boom in short-term rentals creates interesting possibilities for property owners and investors, positioning itself as a key driver for the real estate sector. On the other hand, it raises significant concerns, such as illegal practices, tax evasion, and its social impact on urban centers, underscoring the need for clear regulations.

To address these issues, the Italian government introduced a set of restrictions for those renting properties for short stays. These new rules, which come into effect this year, aim to combat irregular practices and promote transparency and legality in a sector that has become vital to tourism

1. The Database of Hospitality Facilities (BDRS)

On September 3, the Ministry of Tourism officially launched the Database of Hospitality Facilities (BDRS), a digital archive that compiles detailed information on all properties offering short-term rentals in Italy. The database records key data, including the property’s location, accommodation capacity, and the identities of those managing the rentals..

This database is a key tool for accurately mapping and continuously monitoring accommodation facilities nationwide. Its goal is to promote a more regulated environment, improving safety for tourists, while enhancing the reputation of registered properties. This, in turn, will help to raise the overall quality of Italy's tourism offerings.

2. The National Identification Code (CIN)

A key update in the new rules for short-term rentals is the requirement for property owners and managers to obtain a National Identification Code (CIN) by January 1, 2025. This unique alphanumeric code can be obtained through the
Database of Hospitality Facilities, accessible using either the SPID (Public Digital Identity System) or an electronic identity card. Those who already possess a Regional Identification Code (CIR) will have it converted to the new CIN format.

The CIN must be displayed on the exterior of the property and included in websites to ensure the accommodation is easily identifiable. It should also appear in advertisements on online booking platforms, and listings that do not include the CIN will be removed from these systems.

3. Safety devices

The new rules also introduce mandatory safety measures for all properties designated for short-term rentals, aimed at reducing risks to guests.

Firstly, properties equipped with gas systems are now required to install detectors for combustible gases and carbon monoxide. Properties without gas systems are exempt from this requirement, provided it can be clearly demonstrated that there are no risks associated with combustible gas emissions or carbon monoxide.

Additionally, all short-term rental properties must now be equipped with portable fire extinguishers that meet legal standards. These must be placed in key locations, such as near entrances and in areas with a higher risk of fire. Specifically, there must be at least one fire extinguisher for every 200 square meters of space, with a minimum of one extinguisher per floor.

These safety measures apply to all short-term rental properties, whether professionally or privately managed. However, professionally managed properties are subject to an additional requirement: ensuring that their safety systems comply with all relevant state and regional regulations.

4. The Certified Notice of Start of Activity (SCIA)

Under the new rules for short-term rentals, anyone managing short-term rentals as a business—either directly or through an intermediary—must submit a Certified Notice of Commencement of Activity (SCIA). This requirement enables local authorities to better monitor tourism-related activities and take action in cases of non-compliance.

The SCIA must be submitted to the Single Contact Point for Productive Activity (SUAP) in the municipality where the rental property is located. If the rental is managed by a company, the legal representative is responsible for filing the SCIA.

5. Flat tax at 21% only for one property

Starting in 2024, individuals who opt for the cedolare secca (flat tax regime) over the standard IRPEF tax system will benefit from a reduced 21% tax rate exclusively on rental income from a single property. For any additional properties, the tax rate will rise to 26% and individuals will need to specify which property will be subject to the 21% in their tax return. The limit for qualifying for the cedolare secca regime currently remains at four properties. Exceeding this limit will reclassify the rental activity as entrepreneurial, necessitating VAT registration.

For short-term rentals managed through the likes of Airbnb or Booking.com, these platforms will withhold a 21% advance tax on rental income. It will be the individual’s responsibility to then report any additional properties subject to the 26% tax rate and settle any outstanding tax liabilities.

Fines

Failure to comply with the new rules for short-term rentals will incur monetary fines, determined based on the specific violation and the size of the property involved. The penalties are as follows: