Budget Law 2026: Short-term rentals taxed at 26% and flat tax for overtime and holidays
The first draft of the text expected to arrive in Parliament this week
The first draft of the budget law (the arrival in Parliament should not miss the legal deadline of 20 October) contains some new features - the first IRPEF reduction for the middle class, scrapping, the 'contribution' from banks and insurance companies to the manoeuvre - but also an intervention on taxes for short rentals together with the definition of the LEP, a premise for trying to close the reform of differentiated autonomy.
Short-term rentals
Taxation on short-term rentals is raised to 26%, both for private individuals and for those who carry out real estate brokerage activities or operate telematic portals. The rule abolishes the reduction - introduced last year - of the flat rate to 21% for one of the properties: the flat rate therefore remains at 26%. The rate for those who carry out real estate brokerage activities, as well as those who operate telematic portals, is also raised from 21% to 26%.
15% tax on overtime, holidays and nights
The IRPEF cut for incomes between 28 and 50 thousand euro from 35 to 33 per cent is confirmed. The maximum benefit of 440 euro is reached at 50 thousand euro and will be spread over subsequent incomes up to 200 thousand euro.
For 2026, overtime, holidays and night work will be tax-free for employees with incomes of up to EUR 40,000. A flat tax of 15 per cent will be applied to these items ('bonuses and allowances', even if working during the weekly rest period, or for 'shift allowances'), replacing not only the Irpef tax but also 'regional and municipal surtaxes'. The manoeuvre also sets a ceiling of a maximum of EUR 1,500 for the tax discount each employee can enjoy. The tax-free threshold for meal vouchers will also rise from EUR 8 to EUR 10.
Rottamazione
The fifth tax bill amnesty has arrived and will have a payment period of up to 9 years with 54 bimonthly instalments of the same amount (of a minimum of EUR 100 at least in the first draft). It will allow the amnesty of loads entrusted to the collection agents from 1 January 2020 to 31 December 2023 for non-payment of taxes or social security contributions, excluding tax bills issued following an assessment. In the case of payment in instalments, interest of 4% per annum will be applied.
