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 to non-professional hosts meeting the following criteria:

• Hosts with 3 or fewer properties rented out short-term (effective 1 January 2026)
• Hosts not registered for VAT (without a valid EU VAT ID)
• Hosts without a commercial registration number

If you are eligible for Cedolare Secca, current regulations do not allow opting out of this tax withholding system.

What does Cedolare Secca mean for your earnings?

For non-professional hosts, Holidu withholds 21% of your earnings and remits it directly to the Italian tax authority (Agenzia delle Entrate). The 21% tax applies to the gross payout amount before any VAT or Holidu fees. This means cleaning fees, towel fees, and any other extra fees you charge are also subject to the withholding. The only exception is tourist taxes included in the guest price.

If you qualify as a professional host, nothing changes for you. Professional hosts either have a valid EU VAT ID, a commercial registration number, or at least three properties for rent. These hosts continue to receive their full payouts from Holidu without any withholding.

Understanding your tax status

Your classification as a professional or non-professional host determines your tax obligations. Professional hosts are not affected by Cedolare Secca and continue to manage their tax reporting independently. Non-professional hosts benefit from simplified tax handling, as Holidu manages the withholding and tax reporting on your behalf.

Tax reporting and documentation

Holidu handles the complete tax reporting process for eligible hosts:

• The F-24 form is used to remit the withheld taxes to the Italian tax authority on a monthly basis
• You receive an annual Certificazione Unica (CU) report by 16 March of the following year, detailing the taxes withheld on your earnings. The tax document cannot be co-owned, with only one name appearing on it
• Holidu submits the Modello 770 form to Agenzia delle Entrate by 31 October each year, reporting the taxes withheld for the previous period

What happens if your status changes?

If your status changes and you become a professional host by holding three or more properties, obtaining a valid VAT ID, or obtaining a commercial registration number, you must update your account details. This change will affect your tax treatment going forward.

Important considerations about property definitions

For the Cedolare Secca threshold, the definition of "property" depends on the cadastral and legal autonomy of the units involved. Even if multiple apartments are registered in Holidu, they may still count as a single property under Italian law. When determining your status, check with your tax advisor to ensure accurate classification. If you need guidance on how this regulation typically applies in different regions, consulting with a local tax professional is recommended.