If you’ve decided to invest in real estate in Gaeta, or simply have a property you want to generate income from as a vacation rental, you should know that the new DAC7 regulation has been approved to combat tax evasion on digital booking platforms. This regulation requires the regularization of tourist accommodations focusing on short-term rentals—meaning less than 30 days—which can evade tax obligations.
How to register a short-term rental contract
For short-term rental contracts, the law does not require registration of the deed with the Tax Authority, but it does require that tourist accommodation facilities have a CIR (Reference Identification Code), an alphanumeric code to facilitate inspections by the competent authorities. Additionally, the law requires the landlord or intermediaries to communicate guest data to the territorially competent police headquarters.
What is DAC7 and what changes
The new DAC7 regulation aims to combat tax evasion related to certain forms of online commerce, including digital booking platforms. How? By requiring all digital platforms in Europe to transmit to the Tax Authority data on transactions from 1/1/2023, complete with names of payment beneficiaries, tax codes, property cadastral data, bank account details, and complete information on other payment options (PayPal, virtual cards, and foreign accounts), along with their own commissions and fees. Operators with fewer than thirty bookings per year, or who collect less than €2,000 gross, and those with more than two thousand bookings are excluded from monitoring.
What are the risks if you don’t declare the data?
Penalties for failure to communicate to the Tax Authority can range from a minimum of €3,000 to a maximum of €31,500. In case of incomplete or inaccurate information, the penalty ranges from €1,000 to €10,500.
Want to opt for long-term rentals? We’ll help you handle all the paperwork!
The problem doesn’t arise if you opt for long-term rentals, meaning longer than 30 days, which require the registration of a regular contract. In this case, we at Delta Immobiliare can handle all the paperwork regarding contract registration for you. Contact us for more information.
