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 specifically to non-professional hosts. You are considered a non-professional host if you meet all of the following criteria:

• You have 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 qualify as a non-professional host under current regulations, you cannot opt out of Cedolare Secca. The withholding is mandatory.

What Does Cedolare Secca Mean for Hosts?

For non-professional hosts, a 21% income tax is withheld from your rental earnings and remitted directly to the Italian tax authority (Agenzia delle Entrate).

Tax Withholding Details

The 21% tax applies to the gross payout amount before any VAT or platform fees. This includes:

• All accommodation rental earnings
• Cleaning fees you charge
• Towel fees and other extra fees

The only exception to this withholding is tourist taxes that are included in the guest price.

Professional Hosts Are Not Affected

If you are classified as a professional host, Cedolare Secca does not apply to you. Professional hosts are those who have a valid EU VAT ID, a commercial registration number, or who rent at least three properties. Professional hosts continue to receive their full payouts without any withholding.

Tax Reporting and Forms

Holidu handles tax reporting on your behalf. You will receive the following documentation:

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 report details the taxes withheld on your earnings. 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 Agenzia delle Entrate by 31 October each year, reporting the taxes withheld for the previous period.

What If Your Status Changes?

If your hosting status changes and you become a professional host, it is important to update your account details promptly. You may become a professional host by:

• Holding three or more properties for rent
• Obtaining a valid EU VAT ID
• Obtaining a commercial registration number

Once your status is updated to professional, Cedolare Secca withholding will no longer apply to your account.

Important Considerations About Property Definition

For purposes of 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 a single property under Italian law.

If you are uncertain about how your specific properties are classified under Italian tax law, we recommend checking with your tax advisor. Regional variations exist, and a qualified tax professional can provide guidance specific to your situation.