Short-term rentals, dry coupon at 26% only from second rented house

The 26 per cent flat rate applies only from the second rented property. The higher levy is triggered on rental income accruing from 1 January 2024: in this case, the date of conclusion of the contracts or the date of receipt of the rents is not relevant. For the first or only rented house, on the other hand, the 21 per cent rate remains: the choice must be indicated in the tax return for the tax period of interest. Intermediaries will apply the 21 per cent withholding at the time of payment to the landlord regardless of the tax regime adopted. These are some of the clarifications contained in the circular 10/E/2024 of the Revenue, which provides territorial offices with instructions on the changes included in the Budget Law 2024 (Law 213/2023).

The substitute tax rate of the flat rate tax will be applied at 26% from the second rented property. However, the owner who rents out several units has the option of choosing one for each tax period for which to benefit from the reduced rate of 21%. The choice must be indicated in the tax return for the tax period of interest. The new rate of 26 per cent applies to rental income accruing from 1 January 2024, regardless of the date on which the relevant contracts were concluded and the rents received.

Intermediaries, including telematics portal operators, who collect or intervene in the payment of rents related to lease contracts will always have to operate, as withholding agents, a 21 per cent withholding tax on the amount of the rents, at the time of payment to the beneficiary, regardless of the tax regime the latter has chosen. For its part, the lessor must determine the tax (ordinary or substitute) due, deduct the withholding tax and pay any balance by the income tax payment deadline.

Non-EU and non-EU resident intermediaries who have a permanent establishment in Italy operate through it. Residents of an EU Member State that do not have a permanent establishment in Italy may fulfil their obligations directly or appoint a tax representative in Italy. Non-EU persons with a permanent establishment in an EU Member State fulfil the obligations through the permanent establishment and, in the absence of one, must instead appoint a tax representative.