Starting from the fees accrued from 1.1.2024, the short-term rental of more than one residential property with option for flat rate tax discounts the 26% substitute tax. This is what has been confirmed recently circular no. 10/E/2024who commented on the innovations introduced by the 2024 Budget Law regarding short-term rentals, referred to inarticle 4, DL 50/2017. Please note that this provision qualifies as short rentals rental contracts for residential properties duration not exceeding 30 days, including the provision of some ancillary services (linen change, cleaning and wi-fi), stipulated by natural persons outside the exercise of a business activity, directly or using intermediaries.
In the presence of the aforementioned requirements, the rent, in place of the ordinary Irpef taxation foreseen for land income, may be subject to dry tax in the presence of an option by the owner, to be exercised directly in the tax return. Likewise, also the sub-lessor and the borrower, they can subjugate to substitute tax with the flat rate tax regime for various incomes, otherwise taxable and subject to ordinary taxation. This last clarification, contained in the circular no. 24/E/2017takes on particular importance, as it is an exception to the general rule according to which the the flat tax regime replaces the ordinary taxation provided exclusively for land income within the scope of ordinary leases. Subsequently, with Law 178/2020 the short-term rental tax regime only in the case of destination for short-term rental no more than four apartments for each tax period. If the aforementioned limit is exceeded, the rental activity is presumed to be carried out in the form of a businesspursuant to thearticle 2082, cod. civilresulting in exclusion from the tax regime of short-term rentals.
With the 2024 Budget Law, the rate of the flat tax substitute tax is expected to be maintained at 21% in relation to income referring to short-term rental contracts stipulated for a single real estate unit for each tax period; to starting from the second unit real estate the substitute tax rate is now expected to be 26%. There circular no. 10/E/2024 confirms that the identification of the real estate unit, chosen by the taxpayer, to be subject to substitute taxation at the rate of 21%, must occur in the tax return relating to the tax period affected by short-term rentals.
The most awaited clarification concerned the effective date of the new forecastsestablished from the date of entry into force of the 2024 Budget Law, i.e from 1.1.2024. According to the Revenue Agency, the 26% substitute tax concerns i income deriving from accrued short-term rental contracts pro-rata temporis starting from 1.1.2024, regardless of the date of signature of the contract and from moment of perception of the fees. It is noted that the clarification is in line with the rules established for the taxation of land income referred to inarticle 26, TUIRaccording to which it is necessary to have regard to moment of accrual of the income and not the actual perception of the same. However, nothing is said for income other than short-term rentals (sub-lessor and borrower), for which the new rules should apply for fees received starting from 1.1.2024even if the contract concerns previous monthly payments. Likewise, for these subjects the flat rate tax of 21% should continue to be applied for all rents received until 31.12.2023, even if they relate to monthly payments for the year 2024. For completeness, it should be noted that the circular no. 10/E/2024 confirm that the withholding tax rate remains at 21% in the presence of intermediaries who intervene in the collection of the fees, and it is in any case provided as an advance payment.
