Article 4, paragraph 5-bis, of Law Decree 50/2017, as amended by the 2024 Budget Law, requires platforms like Airbnb to apply a 21% income tax withholding rate (“cedolare secca”) on non-professional hosts’ earnings for short-term stays up to 30 days.
Starting January 2024, non-professional hosts will have the 21% withholding tax applied to their earnings of short-term rentals from their listing.
Airbnb will remit the amount withheld to the Agenzia delle Entrate and will issue relevant hosts on an annual basis the “certificazione unica” with details about the tax withholdings on their earnings so they can account for them on their tax returns. Relevant hosts will be always able to review and track their tax withholding details in their account.
This article provides information on the withholding income tax by Airbnb. If you are unsure about how local law or this information may apply to you, we recommend you to research your own obligations or seek advice from your tax advisor.
Based on the law and guidance from the Italian Revenue Agency to date, examples of non-professional hosts include hosts with less than five listings and hosts that are not VAT registered.
Income tax withholding applies to short-term stays that under Law Decree 50/2017 are defined as stays of up to thirty nights.
Only payouts related to listings located in Italy for short-term stays are subject to Italy tax withholding. The tax withholding in Italy (“cedolare secca”) applies to the gross payout amount before deducting host VAT, Host Fee, and co-host payout (if applicable). Additionally, if you charge a cleaning fee, it will also be subject to tax withholding.
Any taxes (ex: tourist tax) collected and passed through via the platform are not considered earnings and will not be subject to income tax withholding. If you have a payout as a co-host, it will not be subject to tax withholding by Airbnb.
If you are a host with less than 5 listings, you will have the withholding tax applied to your earnings unless you (i) have provided Airbnb with a valid VAT ID number, (ii) operate non-residential facilities (struttura ricettiva extra-alberghiera), (iii) rent more than 5 listings on Airbnb and other channels, (iv) list properties on behalf of others and already apply the cedolare secca, or (v) provide additional services such as breakfast. If services are provided by independent third-parties at your listing, this does not count as an additional service.
Under Law Decree 50/2017, as amended by 2024 Budget Law, platforms like Airbnb are required to withhold a flat 21% income tax on earnings of non-professionals, regardless of the number of listings. We recommend you reach out to your tax advisor about accounting for any additional income taxes.
If you are a non-professional host who has opted for the ordinary regime, Airbnb is still required to apply a 21% withholding tax rate from your earnings but the withholding will operate as an advance payment. We recommend consulting with your tax advisor in order to obtain further details on your tax obligations.
Airbnb will start applying the 21% withholding tax rate as soon as you have qualified earnings, unless you provide the information that demonstrates that you are a professional. The tax withholding will apply to all future payouts related to your active listings located in Italy, regardless of when the booking was made. Payouts made before will not be subject to withholding by Airbnb.
Once you have confirmed that Airbnb will withhold your income taxes on your behalf, Airbnb will need to collect required data from you for reporting purposes. This is necessary for Airbnb to accurately report your tax withholding to Italian tax authorities and generate your annual certificazione unica for use with filing your income tax return.
Airbnb will complete the following forms:
If you become a professional host, go to Account > Taxes > Tax Withholding and follow the instructions. For any subsequent change, you will need to contact Customer Support.
No, Airbnb will not automatically stop withholding if you become a professional host. Hosts are responsible for knowing their tax obligations and managing withholding on the Airbnb platform. If you become a professional host, you must go to your Account > Taxes > Tax Withholding and follow the instructions.
No, tax withholding will not automatically stop if you add more listings and the total listing count exceeds four. Hosts are responsible for knowing their tax obligations and will be responsible for managing withholding on the Airbnb platform. If you now have 5 or more listings, go to your Account > Taxes > Tax Withholding and follow the instructions.
No, tax withholding will not automatically stop if the host becomes VAT registered. Hosts are responsible for knowing their tax obligations and will be responsible for managing withholding on Airbnb. If you become VAT registered, go to Account > Taxes > Tax Withholding and follow the instructions.
No, Airbnb will not start withholding automatically if you become a non-professional host. Hosts are responsible for knowing their tax obligations and will be responsible for managing withholding on Airbnb. To confirm that Airbnb will start withholding income taxes on your behalf, hosts can go to their Account > Taxes > Tax Withholding and follow the instructions.
You can find the amount of tax withheld in your Transaction History. Airbnb will also issue you on an annual basis the “certificazione unica” with details about the tax withholdings on your earnings so you can account for them on your tax returns.