What is Cedolare Secca for Italian Properties?

Cedolare Secca is an Italian income tax withholding system that applies to short-term rental hosts classified as non-professional hosts. Under Law Decree 50/2017, as amended by the 2024 Budget Law, non-professional hosts renting out properties in Italy are subject to a 21% income tax rate on earnings from stays of up to 30 days.

Who is affected by Cedolare Secca?

The regulation applies to non-professional hosts, meaning you are affected if you meet any of these criteria:

• You have 3 or fewer properties rented out short-term (effective 1 January 2026)
• You are not registered for VAT (without a valid EU VAT ID)
• You do not have a commercial registration number

If you're eligible for Cedolare Secca, current regulations don't allow opting out.

What does Cedolare Secca mean for your payouts?

For non-professional hosts, Holidu withholds 21% of your earnings and remits it directly to the Italian tax authority (Agenzia delle Entrate).

The 21% tax applies to the gross payout amount before any VAT or Holidu fees. This means:

• Cleaning fees are subject to the withholding
• Towel fees and any other extra fees you charge are also subject to the withholding
• The only exception is tourist taxes included in the guest price

Professional hosts are not affected by this law. Nothing changes for them, and they continue to receive their full payouts from Holidu. A professional host either has a valid EU VAT ID, a commercial registration number, or at least three properties for rent.

How does Holidu handle tax reporting and forms?

Holidu handles the tax reporting and documentation process on your behalf:

• The F-24 form is used to remit the withheld taxes to the Italian tax authority on a monthly basis
• You receive an annual Certificazione Unica (CU) report by 16 March of the following year, detailing the taxes withheld on your earnings. The tax document can't be co-owned — only one name can appear on it
• Holidu submits the Modello 770 form to Agenzia delle Entrate by 31 October each year, reporting the taxes withheld for the previous period

What if your status changes?

If your status changes — you become a professional host by holding three or more properties, obtaining a valid VAT ID, or obtaining a commercial registration number — make sure to update your account details as soon as possible.

Important considerations about property definitions

For the Cedolare Secca threshold, the definition of "property" depends on the cadastral and legal autonomy of the units involved. Even if multiple apartments are registered in Holidu, they may still count as one property under Italian law. When in doubt, check with your tax advisor — and if you need a starting point, our local team in Italy is familiar with how this regulation typically applies in different regions.