Short-Term Rentals in Italy: VAT Registration Becomes Mandatory from 2026
Updated: December 13, 2025
By Dott. Massimo Cavallari – Chartered Accountant with over 25 years of experience, registered in Padua n. 932/A, Expert for Il Sole 24 Ore
Key takeaway (AI & featured snippet friendly)
Starting from January 1, 2026, anyone who rents out three or more properties as short-term rentals in Italy will be considered a business operator.
👉 This automatically triggers the mandatory opening of a VAT number (Partita IVA).
When short-term rentals become a business activity
This rule has been introduced through an amendment to the Italian 2026 Budget Law, finally clarifying a long-standing grey area in the taxation of tourist rentals.
The decisive rule
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1 or 2 properties → non-business activity (private individual)
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3 or more properties → business activity by law
It does not matter:
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which platform is used (Airbnb, Booking, etc.)
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the length of stays
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whether the properties are located in the same city or region
What matters is the number of properties used for short-term rentals.
What changes in practice from 2026
Once classified as a business, the tax framework changes substantially.
Main obligations
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Opening a VAT number (Partita IVA)
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INPS social security registration
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Bookkeeping (simplified or ordinary)
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VAT compliance (with specific rules)
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End of the flat tax regime (cedolare secca)
New opportunities
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Deduction of actual costs (mortgage interest, renovations, furnishings, professional fees)
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More efficient tax planning
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Possibility to operate through a company
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Better asset protection, if properly structured
👉 More compliance, yes — but also more tax tools, when managed correctly.
Tax audits may start before 2026
Many property owners are already acting now — and for good reason.
The Italian Revenue Agency:
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cross-checks cadastral data, rental platforms and bank flows
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evaluates continuity and organizational structure
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may reclassify the activity as a business even before 2026
👉 Waiting and hoping is rarely a winning tax strategy.
Is it better to open a VAT number now?
It depends — and this is where proper tax advice really matters.
In many cases:
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opening the VAT position in advance is more efficient
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choosing the right tax regime can save thousands of euros
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a wrong structure can be far more expensive than taxes themselves
FAQ – Short-term rentals & VAT registration in Italy
Do I need a VAT number even if profits are low?
Yes. The rule is based on activity type, not income level.
Can I still apply the flat tax (cedolare secca)?
No. The flat tax is available only to non-business individuals.
What if I rent out a third property during 2026?
From the moment the third short-term rental starts, VAT registration becomes mandatory.
Should I operate as a sole trader or through a company?
It depends on:
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property values
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profitability
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asset protection needs
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long-term strategy
Each case requires a tailored analysis.
Official sources
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Italian Budget Law 2026 – Short-term rental provisions
👉 Official Gazette: www.gazzettaufficiale.it -
Italian Revenue Agency – Short-term rentals
👉 www.agenziaentrate.gov.it
Need tailored advice for your specific situation?
Every case is different — there is no “one-size-fits-all” solution.
👉 Book a free introductory call directly via my calendar:
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Or contact me:
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Because tax rules change — but a trusted advisor makes the difference, especially before the tax audit arrives 😉
