The rules for short-term tourist rentals are changing significantly. With the 2026 Budget Law (Law No. 199/2025), the threshold above which rental activity is considered a professional business activity has been lowered.
Previously, the presumption of business activity applied starting from four properties. Under the new rules, the threshold drops to more than two properties. This means that anyone who rents three properties on a short-term basis is automatically considered to be carrying out an entrepreneurial activity.
As a consequence, the owner must:
- open a VAT number
- exit the private taxation regime used for occasional rentals
- comply with business accounting and administrative obligations
This presumption of business activity, based on Article 2082 of the Civil Code, applies to all individuals involved in tourist rentals, including:
- property owners
- sublessors
- borrowers or users of the property
It also applies when the properties are rented through online platforms or intermediary agencies.
The aim of the regulation is to distinguish between those who occasionally rent out a property to supplement their income and those who operate a real commercial accommodation activity.
How the Two-Property Threshold Is Calculated
The limit is assessed each calendar year and applies only to individuals. The rule counts the number of residential properties actually rented with contracts lasting less than 30 days.
A property is included in the calculation even if it is rented for just one day during the year.
What does not matter is:
- the number of guests hosted
- the number of rental contracts signed for the same property
The decisive element is simply the number of housing units rented on a short-term basis. For example:
- If an owner has three apartments but rents only two, they remain under the private rental regime.
- If the third apartment is also rented short-term, the law presumes the existence of a business activity.
From that moment, the owner must open a VAT number and operate as a business.
What Happens If One Property Has a Long-Term Lease?
Owners who have more than two properties may avoid the business classification if one of the properties is rented under a standard residential contract.
For instance, if an owner has three properties but:
- one is rented with a 4+4 residential contract, or
- one is rented with a 3+2 regulated rent contract,
that property is not counted among short-term tourist rentals.
In this case, the owner may continue to use the private tax regime for the remaining two properties.
The obligation to open a VAT number only arises when three or more properties are simultaneously used for short-term tourist rentals.
Obligations When the Threshold Is Exceeded
When the activity qualifies as a business, the owner must regularize their administrative position.
The main obligations include:
- Opening a VAT number under Article 35 of Presidential Decree 633/1972
- Registration through Single Communication to the Business Register
- Registration with INPS and INAIL for social security and insurance purposes
In addition, the owner must submit a SCIA (Certified Notification of Start of Activity) to the SUAP office of the municipality where the properties are located.
Failure to submit the SCIA can lead to administrative fines between €2,000 and €10,000.
From a classification standpoint, the activity usually falls under ATECO code 55.20.42, which covers accommodation services such as rooms or holiday homes managed as a business.
How Taxation Works in the Business Regime Once the activity becomes entrepreneurial, the taxation system also changes.
Many owners opt for the flat-rate tax regime (regime forfettario), which simplifies taxation.
Under this system:
- taxable income is not calculated on the real profit
- instead, a profitability coefficient of 40% is applied to revenues from tourist rentals
The tax rates are:
- 5% substitute tax for the first five years of activity
- 15% substitute tax after the first five years
Invoices are issued without VAT, but expenses cannot be deducted.
If the flat-rate regime is not applied, tourist accommodation services are subject to 10% VAT. By contrast, traditional residential rental contracts remain VAT-exempt.
New Safety Obligations for Tourist Properties
Regardless of how many properties are rented, the law introduces stricter safety requirements for short-term rentals.
Each property must have a CIN (National Identification Code), which must be displayed:
- at the entrance of the property
- in every online advertisement or listing
Minimum safety requirements include:
- smoke, gas, and carbon monoxide detectors
- portable certified fire extinguishers placed visibly (at least one per floor)
- electrical and safety systems compliant with national and regional regulations
Failure to comply with these safety obligations can lead to fines ranging from €600 to €6,000 for each violation identified during inspections.
VGS Family Lawyers is a law firm that offers assistance to English-speaking clients with interests in Italy. In case you need assistance, please write to: info@vgslawyers.com.