In the context of taxation of income deriving from short-term rental contractsa relevant question arises regarding the choice of flat rate tax regime.
The question asked by a taxpayer to the Revenue Agency, specifically, concerns theapplicability of the tax rate of 21% instead of 26% for short-term rental contracts relating to same real estate unit rented several times during 2024.
This question raises an important reflection on the fiscal management of short-term rentals and on the optimization of the taxation associated with these activities.
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Differentiated rates
Law no. 213/2023 introduced a new rate of 26% for the flat rate tax regime starting from 1 January 2024. However, the same law provides a reduction of the rate to 21% specifically for income deriving from short-term rentals of a single real estate unitselected by the taxpayer in his tax return.
The taxpayer, therefore, confirming in the tax return that the real estate unit subject to short-term rentals is unique, benefits from the reduced rate of 21%. This tax advantage applies regardless of the number of times the property is rented during the year, as long as it is always the same unit.
The Agency specifies that: if the taxpayer owned and decided to briefly rent more than one real estate unit, the 21% rate could only be applied to one of theseat the landlord’s choice, while for the others the standard rate of 26% would apply.
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The prerogative of short-term rentals
Short leases are configured as rental contracts for properties intended for residential use whose duration does not exceed 30 days. These contracts may include additional servicessuch as the supply of linen and cleaning of the premises.
I am generally stipulated by private individuals who do not act in the context of business activitiesand can make use of real estate intermediaries or online platforms that facilitate the connection between tourists and accommodation owners.
As regards the tax aspect, the article specifies that, starting from 1 June 2017, owners or holders of real rights of enjoyment on rented properties have the possibility to opt for an alternative tax regime compared to the ordinary one then in force.
This alternative is represented by dry couponwhich is configured as asubstitute tax for personal income tax and related surcharges. The dry tax also covers the costs relating to stamp duty and registration fees, which are normally applicable to rental contracts, as established by article 3 of legislative decree no. 23 of 2011.
There recent budget law 2024as we mentioned before, introduced a significant change to the flat rate tax regime for short-term rentalsestablishing arate increased to 26% in the event that the same natural person rents multiple housing units. This legislative change aims to more effectively regulate the phenomenon of short-term rentals, in response to the evolution of the real estate market and the tourism dynamics that influence the demand for temporary accommodation.
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