The latest budget law introduced important innovations for the short-term rentals in 20024 about the dry coupon they intermediaries, including the managers of online portals, who collect or intervene in the payment of fees relating to rental contracts. The Revenue Agency in the circular n 10/E of 10 May provided all the useful information and news to understand what is changing for short-term rentals in 2024
What will change in 2024 for short-term rentals?
The flat rate tax with a rate of 26% applies only starting from the second property rented out. However, nothing changes for the first or only rented home which discounts the rate at 21%. With circular no. 10/E the Revenue Agency provides instructions to the offices on the innovations introduced on short-term rentals by the 2024 Budget Law (Law 30 December 2023, n. 213).
New rules also for real estate intermediaries and managers of electronic rental portals who, upon payment to the landlord, will always have to operate, as tax withholding agents, a withholding tax of 21% as an advance payment regardless of the tax regime adopted by the beneficiary.
The practice document also illustrates in detail the provision with which the 2024 Budget Law adapts national legislation to the content of the ruling on the tax obligations of non-resident intermediaries issued by the Court of Justice of the European Union on 22 December 2022.
How much is the 2024 flat rate tax?
The rate of flat rate tax will be applied at 26% starting from the second property rented. The owner who rents out several units still has the possibility of choosing one for each tax period for which to benefit from the reduced rate of 21%. The choice must be indicated in the tax return relating to the tax period of interest. The new rate of 26% applies to rental income accrued from 1 January 2024, regardless of the date of signature of the relevant contracts and the receipt of the fees.
The intermediaries, including the managers of electronic portals, who collect or intervene in the payment of the fees relating to the rental contracts must always operate, as withholding agents, a withholding tax of 21 percent, as an advance on the amount of the fees, upon payment to the beneficiary, regardless of the tax regime that the latter has chosen. For its part, the lessor will have to determine the tax (ordinary or substitute) due, deduct the withholding taxes and pay any balance within the deadline for the payment of income taxes.
Non-EU and non-EU resident intermediaries who have a permanent establishment in Italy operate through it. Individuals resident in a Member State of the European Union who do not have a permanent establishment in Italy can fulfill the obligations directly or appoint a tax representative in Italy. Non-EU entities with a permanent establishment in a Member State of the Union fulfill the obligations through the permanent establishment and, in the absence of this, must instead appoint a tax representative.
