If you have decided to invest in real estate in Gaeta, or you simply have a house that you want to generate income from as a vacation home, you should know that the new DAC7 regulation has been approved to combat tax evasion on digital booking platforms. A regulation that forces to regularize tourist facilities that focus on short rentals-that is, less than 30 days-that can avoid tax obligations.
How to register a short rental contract?
For short-term rental contracts, the law does not require the registration of the deed with the Revenue Agency, but it does require that tourist accommodation facilities have a CIR (Reference Identification Code), an alphanumeric code to facilitate checks by the competent authorities. In addition, the law requires the communication of guest data to the territorially competent police headquarters by the landlord or intermediaries.
What is DCA7 and what it changes?
The new DAC7 legislation plans to combat tax evasion related to certain forms of online commerce, including digital booking platforms. How? The new DAC7 legislation plans to combat tax evasion related to certain forms of online commerce, including digital booking platforms. How? By obliging all digital platforms in Europe to transmit transaction data to the IRS from 1/1/2023 complete with names of payment recipients, tax codes, cadastral data of properties, 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 less 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 is at risk if data is not declared?
Penalties for failure to report to the Internal Revenue Service (Agenzia delle Entrate) 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.
Do you want to opt for long-term rentals? We can help you with all the paperwork!
The problem is not created if you opt for long-term rentals, greater than 30 days, which implies the registration of a regular contract. In this case, we at Delta Immobiliare can handle all the procedures regarding the registration of the contract for you. Contact us for more information.
