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Italy’s Budget Bill Confirms Short-Term Rental Tax Hike, Keeping 21% Only for Off‑Platform Lets

The official draft ties the lower flat rate to rentals without intermediaries, a shift governing allies say they will try to overturn in Parliament.

Overview

  • The Economy Ministry said the budget bill was certified by the state auditor and sent to the prime minister’s office for transmission to Parliament.
  • Article 7 maintains a 21% flat tax only if, during the tax year, no contracts for that unit are concluded via intermediaries or online portals; otherwise a 26% rate applies.
  • Forza Italia’s Antonio Tajani and the Lega’s Matteo Salvini publicly rejected the increase and pledged to seek its removal or changes during the parliamentary review.
  • Industry groups warn the change would mostly hit small hosts, citing Aigab data that 96% of online-listed properties are owned by single proprietors and an estimated €1,300 in extra yearly tax on a typical unit.
  • Local reactions diverge: Milan’s mayor backs tighter curbs, hotel associations decry unfair competition from short lets, and host groups predict fewer listings, higher prices or more off‑the‑books rentals.