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 classified as a non-professional host if you meet any of these criteria:

• You own 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 are eligible for Cedolare Secca, current regulations do not allow you to opt out of this withholding system.

What does Cedolare Secca mean for your earnings?

For non-professional hosts, Holidu withholds 21% of your earnings and remits the amount directly to the Italian tax authority (Agenzia delle Entrate). This withholding applies to your gross payout amount before any VAT or Holidu fees are deducted.

The 21% tax applies to:

• Your accommodation earnings from guest stays
• Cleaning fees you charge guests
• Towel fees and other extra fees included in your pricing

The only exception is tourist taxes included in the guest price, which are not subject to the withholding.

Are professional hosts affected?

Professional hosts are not subject to Cedolare Secca withholding. You are classified as a professional host if you meet any of these conditions:

• You hold a valid EU VAT ID
• You have a commercial registration number
• You own three or more properties for rent

If you are a professional host, nothing changes in how you receive your payouts from Holidu. You continue to receive your full earnings without any tax withholding by Holidu.

Tax reporting forms and documentation

Holidu handles the tax reporting process for you. Here are the key forms involved:

F-24 Form

The F-24 form is used to remit the withheld taxes to the Italian tax authority on a monthly basis. Holidu manages this submission on your behalf.

Certificazione Unica (CU) Report

You receive an annual Certificazione Unica report by 16 March of the following year. This document details all 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. This form reports the taxes withheld for the previous period.

What happens if your host status changes?

If your status changes and you become a professional host, you must update your account details with Holidu. You would become a professional host by:

• Obtaining a valid EU VAT ID
• Obtaining a commercial registration number
• Adding a third or more property to your rental portfolio

Make sure to inform Holidu of any changes to your professional status so that the correct tax treatment is applied to your future earnings.

Understanding property definitions under Italian law

For the Cedolare Secca threshold, the definition of "property" depends on the cadastral and legal autonomy of the units involved. This means that even if you have multiple apartments listed on Holidu, they may still count as a single property under Italian law.

If you are uncertain about how many properties you have under Italian tax law, we recommend consulting with your tax advisor. Our local team in Italy is familiar with how this regulation typically applies in different regions and can provide regional guidance.

Summary

Cedolare Secca is a mandatory withholding system for non-professional short-term rental hosts in Italy. Holidu manages the tax withholding and reporting on your behalf, deducting 21% from your earnings and submitting the required forms to Italian tax authorities. If you are a professional host with a VAT ID, commercial registration, or three or more properties, you are not subject to this withholding.