Short-term Lets and Airbnb: New Tax Obligations and VAT Registration from 2026
From 1 January 2026, the Budget Law introduces significant changes for short-term lets and platforms such as Airbnb. Anyone letting three or more residential properties under contracts lasting fewer than 30 days will be required to register for VAT, with the activity classified as a business subject to specific tax and social security obligations, including bookkeeping and the application of ordinary personal income tax (IRPEF) instead of the flat-rate substitute tax on rental income.
The Presumption of Business Activity and the National Identification Code (CIN)
This statutory presumption of business activity is based on the number of self-contained property units (cadastral categories A, excluding A/10), counted annually for each taxpayer, regardless of the number of contracts or their duration. For example, letting rooms in the same flat counts as a single unit, while adding a third property during the year triggers the obligation from the start date of that letting. Clarifications from the National Council of Chartered Accountants and Accounting Experts specify that income earned before the threshold is exceeded remains taxable as income from land and buildings or miscellaneous income, while subsequent income is treated as business income.
For owners, these rules entail more bureaucracy and potential additional costs, but serve to distinguish occasional investors from professional operators, protecting competition in the tourism and hotel sector.
In addition, since 1 January 2025, a National Identification Code (CIN) has been mandatory for each property, issued by the Ministry of Tourism following submission of cadastral details and confirmation of compliance with safety system requirements. Platforms such as Airbnb must verify its validity and prevent listings without a CIN, replacing local codes with a single national register to monitor the market.
Local Regulations and European Harmonisation
At local level, municipalities, particularly in tourist areas, are introducing specific regulations. These include annual limits on the number of days for short-term letting, geographical restrictions or five-year authorisations, a power upheld by Constitutional Court judgment no. 186/2025, which strengthens regional and municipal powers to preserve the urban planning balance and promote sustainable tourism.
From 20 May 2026, EU Regulation 2024/1028 requires platforms to transmit booking data (overnight stays, guests, identifiers) to a single national access point, introducing unique registration numbers for accommodation and thereby improving tax and administrative transparency between Member States.
Conclusions
Owners are required to check the specific municipal rules, obtain a CIN and plan their asset management to adapt to the new regulations. They may choose to remain below the threshold as private individuals or operate as a business with appropriate advice, without necessarily compromising the profitability of their investments.
