This year’s budget law brought about a change in the taxation of properties rented on a short-term basis (eg. for less than 30 days). In this article we will review what the 2024 flat rate tax consists of, on how many properties it can be used and how to normalize properties intended for short-term rentals.
How does the 2024 flat rate tax change?
Let\’s start by saying what is meant by flat rate tax.
The flat rate tax is an optional regime which takes the form of a substitute tax for the Irpef and additional taxes for the part deriving from the income of the property. The duration of the flat-rate tax contract can be 4 years with an extension of another 4, 3 years with an extension of another 2, 1 month with a maximum duration of 18 months, a minimum of 6 months and a maximum of 3 years. Furthermore, it does not require stamp duty or registration fees as it is not subject to the obligation of registration even if it needs to be drawn up in written form.
After much discontent from hoteliers, who accused property owners of unfair competition by taking advantage of a “facilitated” taxation for short-term rentals, the government took action by introducing in the 2024 Budget Law an increase in the flat-rate tax for those who rent properties for a period of less than 30 days, the so-called short-term rentals . let\’s review in detail what this increase consists of.
The 2023 dry tax rate goes from 21% to 26%, but not for everyone. Taxpayers who rent a single apartment can still benefit from the 21% rate, while from the second apartment the rate rises to 26%. Therefore, those who have more than one apartment will only have to pay the increased rate from the second onwards.
How many properties can I rent with the flat rate tax?
Unfortunately for apartment owners, the use of this tax regime is limited to the rental of a maximum of 4 apartments. From the fifth apartment the presumption of business activity arises for which it is necessary to have a VAT number.
If you rely on online booking portals, the 21% withholding tax must be paid by the portal itself which will pay it directly to the treasury. The taxpayer must indicate this in their tax return. Introduction of the CIN for short-term rentals
The introduction of the CIN
(National Identification Code) is also confirmed for residential real estate units intended for short-term rentals. This legislation has the aim of combating tax evasion resulting from failure to declare holiday home rentals.
The CIN must be displayed outside the building in which the apartment in question is located and must always be specified in rental advertisements both by landlords and by real estate brokerage activities or online portals.
In case of non-compliance, significant financial penalties are incurred. Here are the specific cases and the sums.
- For a property without CIN it ranges from 800 to 8000 euros,
- For failure to declare the CIN in the rental advertisement, the amount ranges from 500 to 5,000 euros and the immediate removal of the advertisement,
- For a property without safety requirements the fine ranges from 600 to 6,000 euros,
- For those who carry out business activities who have not requested the SCIA, the fine ranges from 2,000 to 10,000 euros.
The decree contains specific provisions to be implemented in municipal and regional areas in the attribution of identification codes for properties intended for short-term rentals.
