The landscape of short-term rentals will undergo significant changes starting from January 1, 2024, with a series of novelties involving both property owners and tenants. These changes have been introduced in response to growing pressure from mayors and aim to further regulate this rapidly expanding sector. Let’s take a look at what will change.
Increase in Tax Rates, One of the major changes concerns tax rates. Starting from January 1, 2024, the flat tax rate for short-term rentals will increase from 21% to 26%. This increase will apply to those who rent out at least two properties, while those who rent out only one house will continue to benefit from the lower tax rate. It’s important to note that if you own two or more properties designated for short-term rentals, the 26% tax rate will apply to all dwellings, including the first one. This means that property owners will have to pay a higher percentage compared to long-term rentals, which are subject to a fixed tax rate of 21%, regardless of the number of properties involved.
Taxes for Those, Owning Five or More Properties For those who own five or more properties designated for short-term rentals, the flat tax rate will not apply. Instead, marginal IRPEF taxation will be imposed, representing the highest percentage for each income and calculated on 95% of the rental income. This change could result in a significant tax burden, especially for high-income property owners. Additionally, there will be a need to pay the registration tax, calculated at 2% of the annual rent.
Introduction of the National Identification Code (CIN) One of the most significant changes starting in 2024 is the introduction of the National Identification Code (CIN). This code will be used to register and monitor apartments, facilities, and rooms rented for tourist purposes, in order to combat irregularities in the short-term rental sector. Anyone renting a room or property for short periods (up to 30 days) for tourist purposes must display the CIN inside the building and include it in the advertisements used to promote it. This rule also applies to owners of hotel or non-hotel accommodations. Those who do not comply with this provision may be fined from 800 to 8,000 euros, depending on the size of the property. The CIN will need to be requested through an online procedure at the Ministry of Tourism and will be displayed by intermediaries and specialized portals.
Authorities’ Oversight The Revenue Agency and the Financial Guard will be responsible for monitoring compliance with this new rule. They will use advanced technologies to identify those who rent residential units without the CIN. Penalties for those who have obtained certification but do not display the notice can range from 500 to 5,000 euros.
Safety Requirements for Entrepreneurial Rentals Finally, those who rent out properties in an entrepreneurial capacity, owning more than four properties designated for short-term rentals, will have to ensure that the properties meet legal safety requirements for installations and implement systems for detecting combustible gas and carbon monoxide. Violating these rules can result in fines ranging from 600 to 6,000 euros.
In summary, starting in 2024, short-term rentals will be subject to higher taxes, increased regulation, and the introduction of the National Identification Code (CIN) to combat irregularities in the sector. Property owners and operators in the short-term rental industry will need to pay attention to these new rules and ensure compliance with regulatory provisions to avoid sanctions and fines.