With the flat rate tax rate at 26% and rising costs, what is worth it? Here is the comparison between returns, taxes and new rules in Italy
For several years, short-term rentals have been considered the new frontier of brick and mortar. Airbnb, Booking and other platforms had transformed the homeowner into a small business owner. Today the situation is changing rapidly.
Everything comes from Budget Law 2025which provides for the increase of dry coupon from 21 to 26% on short-term rentals. A measure designed to “raise cash” but which, in reality, could reduce the convenience of this type of rental. The only exception would be for those who rent a single home without going through online platforms.
Taxes, costs and bureaucracy: what remains?
Here is a question that worries many Italians. Net of taxes, fees and expenses, the actual earnings of those who rent for short periods have been drastically reduced.
According to the most recent estimates, in fact, only 25% of gross receipts it really remains with the owner. The rest ends up in IMU, tax, utilities, Tari, cleaning costs, maintenance and platform commissions (up to 15%). Let’s take a practical example: out of 100 euros collected per night, the owner has around 85 left after the platform’s withholding. And from there we still need to eliminate taxes and expenses.
Comparison with traditional rentals
Those who choose ordinary rentaldespite the risk of arrears and long eviction times, today it obtains a significantly more stable yield. For a 4+4 contract, the real net is around 60-65% of the gross rent, which can rise up to 75% for an agreed 3+2 rent.
In comparison, gshort-term rentals rarely exceed 25-30% net: a gap that is pushing many owners to return to the classic formula, particularly in large cities where the supply of tourist accommodation is decreasing.
The main Italian cities
Depending on where you live, of course, the annual income will be very different. Let’s see specifically how it changes in the largest cities of Italy.
TO Milanthe average takings gross per year from short-term rentals is approx 22,000 eurosbut the net stops at 5,500. With a traditional rent 4+4however, the owner goes further 8,600 euros net. In Romewhere tourist demand is more constant, lthe difference is minimal: short-term rentals are profitable 7,540 euros netagainst i 7,536 of the ordinary contract e 8,536 for the agreement. TO Naples And BolognaThe advantage of contracts traditional it is now evident, while Florencedespite the high volumes of tourism, shows a increasingly thinner margin between gross and net for short periods.
In any case, the sudden reversal of fronts, with an advantage of the traditional rental compared to the short-term one, appears evident in almost all of Italy.
Possible changes
The tax increase has unleashed a political storm. Different forces of the majority, from Forza Italia at the Alloyexpressed doubts about the 26% rate and they propose to stop at 23%, or even of lower the coupon on long-term rentals to 15%. to encourage stable leasing.
The Minister of Economy Giancarlo Giorgetti he hinted aopening to any changes: “We need to understand whether residential rentals or tourist rentals for foreigners should be rewarded.” Also Construction Confederationwith president Giorgio Spaziani Testa, took sides against the increase in the short-term coupon, proposing instead of double the IMU reduction (today at 25%) for those who rent at an agreed rentuntil the tax is completely eliminated.
The housing crisis
The fiscal squeeze and rising costs are reducing the supply of homes for tourists, but they have certainly not solved the problem housing crisis in big cities. The owners’ associations remind us that short-term rentals represent less than 2% of total Italian homesso penalizing them will not automatically increase the supply of housing in the long term. What could really make a difference, experts say, is a fiscal policy that reward those who rent permanently and reduce the risk of arrearsfor example by speeding up evictions and encouraging agreed rents.
The future of the market
In 2025 the real estate market will move up two parallel tracks (although hopefully one day they will meet): on the one hand the tourist demandwhich remains strong but more selective; on the other the search for stability by the owners.
Short-term rentals are not disappearingCertain, but they return to being a niche choice for those who can afford to manage the property directly and maximize occupancy.
The truth balancetoday, can be found thanks to one conscious management: less improvisation, more calculations and above all careful tax assessment.
