This year’s Budget Law brought a change in the taxation of properties rented with short-term leases (i.e., for less than 30 days). In this article we will see what the flat-rate tax 2024 consists of, on how many properties it can be used and how to regularize properties intended for short-term rentals.
How does the flat-rate tax 2024 change?
Let’s start by saying what is meant by flat-rate tax.
The flat-rate tax is an optional regime that consists of a substitute tax for IRPEF and additional taxes for the portion deriving from the property’s income. The flat-rate tax contract duration 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, minimum of 6 months and maximum of 3 years. Furthermore, it does not require stamp and registration taxes as it is not subject to the registration obligation even though it needs to be drawn up in written form.
After several complaints from hoteliers, who accused property owners of unfair competition by taking advantage of a “subsidized” taxation for short-term rentals, the government took action by introducing in the 2024 Budget Law the increase of the flat-rate tax for those who rent properties for a period of less than 30 days, the so-called short-term rentals. But let’s see in detail what this increase consists of.
The flat-rate tax rate 2024 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, only from the second onwards will have to pay the increased rate.
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 onwards, the presumption of business activity is triggered, 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 tax authorities. The taxpayer must indicate this in the tax return.
Introduction of the CIN for short-term rentals
The introduction of the CIN (National Identification Code) is confirmed also for residential real estate units intended for short-term rentals. This regulation has the purpose of combating tax evasion resulting from the failure to declare vacation home rentals.
The CIN must be displayed on the outside of 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 intermediation activities or online portals.
In case of non-compliance, significant financial penalties are incurred. Here are the specific cases and amounts.
- For a property without a CIN, from 800 to 8,000 euros,
- For failure to declare the CIN in the rental advertisement, from 500 to 5,000 euros and immediate removal of the advertisement,
- For a property without safety requirements, from 600 to 6,000 euros in penalties,
- For those who carry out the activity in business form who have not requested the SCIA, from 2,000 to 10,000 euros in penalties.
The decree contains specific provisions to be implemented at municipal and regional levels in the attribution of identification codes for properties intended for short-term rentals.
