Short-term rentals, dry coupon rate of 26 percent for rental income collected from 1 January 2024, with the exception of a real estate unit for which the 21 percent tax remains.
For the intermediaries there withholding tax applied to compensation, however, it remains equal to 21 percent, and it will therefore be the taxpayer who will have to determine the tax actually due, to be paid within the terms of payment of income taxes.
These are some of the clarifications provided by Revenue Agency circular no. 10/E of 10 May 2024, which analyzes the innovations relating to the regulations on short-term rentals introduced by Budget Law no. 213/2023.
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Short-term rentals, the tax circular arrives: the news on flat rate tax and intermediaries
The 2024 Budget Law has once again modified the short-term rental regime, with changes both in terms of taxation rules and in relation to the obligations for intermediaries and online platforms.
The Revenue Agency circular therefore analyzes the innovations introduced, with a specific focus also in relation to the new flat rate tax.
The rate of substitute tax applied to income deriving from short-term rentals is equal to 26 percent and no longer 21 percent, without prejudice to the more favorable rules for those who rent for periods of less than 30 days a single real estate unit.
As specified in circular 10/E/2024, the new legislation:
“recognizes the lessor the right to take advantage of the reduced rate of 21 percent in relation to income relating to short-term rental contracts stipulated for a single real estate unit for each tax period, at the taxpayer’s choice.”
It will be during the tax return that the taxpayer will be able to identify the property to be subject to reduced taxation and, on this front, the operational rules will arrive next year with the publication of the instructions relating to the 730 form and 2025 income.
- Short-term rentals, Revenue Agency circular no. 10 of 10 May 2024
- From the flat rate tax to the obligations for intermediaries, the Tax authorities’ instructions on the new provisions of the 2024 Budget Law
Dry coupon for short-term rentals at 26 percent for income accrued from 1 January 2024
A specific clarification comes in relation to incomes subject to the new regulations.
The flat rate tax of 26 percent is in force from 1 January 2024 and, as highlighted by the Revenue Agency, will be due in relation to income deriving from short-term rental contracts accrued from that dateregardless of the date of stipulation of the contracts and the perception of the fees.
Short-term rentals through intermediaries and online platforms, the withholding tax remains at 21 percent
A specific focus is also dedicated by the Revenue Agency to the rules established for intermediaries and for the entities they manage telematic portals and collect or intervene in the payment of fees.
Then the withholding tax applied to compensation remains equal to 21 percentto be made as an advance on the amount of the fees and considerations at the time of payment, regardless of the tax regime adopted by the beneficiary.
It will therefore be the taxpayer who will have to determine the tax actually due, ordinary or substitute in the case of the flat tax option, in the tax return for the reference year. Any balance due must be paid by the deadline for payment of the income tax balance.
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