Rental Properties in Italy: A Legal Guide for International Investors
Introduction
From high tourism to affordable entry prices, Italy is an advantageous market for investment properties. Demand for short-term rentals is rising, with Italy hosting a record 68 million tourists in 2024. Between September 2023 and 2024, the mean occupancy rate for an Italian Airbnb was 70%, averaging at €135 per night (airbtics). While highly profitable, recent changes in regulations and tax regimes have complicated the hosting process for investors. These shifts make legal guidance increasingly important, allowing you to purchase and establish a rental property without worrying about the changing regulatory landscape.
Purchasing Property
When looking to start a rental property, it is crucial to verify that the municipality allows short-term rentals. The actual purchase follows a relatively standard procedure for international investors:
- Begin by acquiring an Italian tax code (codice fiscale). This is done through an application at the Italian consulate in your country of residence.
- Locate a property in an area that permits short-term rentals with an advantageous tourism scene. An attorney can help verify that your selected property complies with local regulations.
- Make a formal purchase offer. If the seller accepts, this offer is binding.
- An attorney will help you appoint the appropriate professionals for due diligence, such as an architect, land surveyor, and notary. Sign a preliminary contract and pay the deposit.
- Sign the final deed of sale before a notary.
- Finish administrative steps, such as registering the deed and paying corresponding fees. To start a rental property, it is essential that the home be registered as a residential property, instead of commercial. Hiring an attorney will ease this burden, ensuring you do not overlook any legal requirements.
Choosing Your Rental Strategy: Short-Term vs. Long Term
While platforms like Airbnb and Booking.com are typically employed to list short-term rentals, longer-term rentals are also an option. Choosing your strategy from the outset is important, as the categories have different legal requirements.
Short-Term Rentals
Under Legislative Decree 50/2017, a rental of 30 days or less is considered short-term. These rentals do not need to be registered with the Agenzia delle Entrate, or the Italian Revenue Agency. Basic services like linen provision and cleaning may be provided, but any hospitality-style services like meals or rental cars are prohibited, as these services are only allowed at a struttura ricettiva (accommodation facility).
Long-Term Rentals
Alternatively, in line with Legislative Decree 123/2025, long-term rentals require registration with the Agenzia delle Entrate, which can be done online or through an appointed intermediary. Similar to short-term rentals, host services are limited to basic cleaning and linen changes.
Temporary Rentals
Beyond tourism rentals, an alternative is “temporary rentals,” which must be rented for specific needs, such as work or study reasons. Pursuant to the Ministerial Decree of January 16, 2017, these rentals can extend up to 18 months, and contracts must follow a unique form.
Contracts
Any rental in Italy – short or long-term – requires a contract signed by both parties, though the form varies with rental type (LEGGE 9 dicembre 1998, n. 431). An attorney can help you prepare a contract and verify it meets the requirements for your rental category.
Mandatory Registrations and Authorizations
Registering a rental property involves several administrative steps to ensure that all relevant government authorities are properly informed and your property is in compliance. Locally, the property must be registered with the municipality, local police, and any other relevant regional offices. Each registration will require different paperwork, and sometimes corresponding fees. Many municipalities will issue a regional identification code, which is expected to appear on all property advertisements.
Legislative Decree 18 ottobre 2023, n. 145, art. 13-ter, formally enforced beginning in 2025, also requires all tourism-based rentals to acquire a National Identification Code (CIN) to combat tax evasion. This code must be obtained through the Banca Dati Nazionale delle Strutture Ricettive (BDSR), which is Italy’s national tourism database. Once received, the code must be displayed on your listing, outside your property, and presented during an inspection. To encourage compliance, hosts can face fines anywhere from €800–€8,000 for violations. Also, any listings failing to advertise their CIN will be removed from listing platforms.
In addition to registering property, rental hosts also must register their guests within 24 hours of check-in, or within 6 hours for one-night stays (Regio Decreto 18 giugno 1931, n. 773). Guest registration is done through the Questura (the local Italian immigration focused police). This is mandatory for all guests, regardless of citizenship, and requires hosts to personally collect identification from each visitor. Finally, hosts must report guest flows to the Italian National Institute of Statistics or ISTAT (D.Lgs. 6 settembre 1989, n. 322).
Safety Regulations
Along with registration requirements, rental properties must meet several safety regulations. The same decree that instated the CIN, Legislative Decree 18 ottobre 2023, n. 145, art. 13-ter, also requires rental properties to contain detectors for carbon dioxide and combustible gases, plus at least one portable fire extinguisher per floor. Beyond the Legislative Decree’s minimum requirements, properties must comply with any regulations set by the locality.
Taxation
Another responsibility for investors is paying Italian taxes. Any rental income earned in Italy is subject to Italian taxes, requiring an annual tax return. Italy’s Cedolare Secca is an optional flat-tax that replaces progressive income tax (IRPEF), currently sitting at a 26% rate. Whether it is optimal to opt in to the flat-tax depends on the amount of your deductible expenses.
Furthermore, many cities require hosts to collect a visitor’s tax from their renters. While this does not detract from the host’s income, it adds an additional administrative step.
Extra Factors for International Investors
While investing internationally is advantageous in several ways, such as entering a market with steady tourism or personal access to your own vacation home, it also presents a few additional burdens. For example, cleaning staff must be legally hired in compliance with local regulations, and you will require an authorized representative for any needs that require a physical presence, such as in-person check-in or reviewing property damage.
In addition, preparing the property for rental may require other steps that involve hiring additional professionals, such as furnishing, photography, or remodeling. Other strategies to consider are competitive pricing and customer service, ensuring you maximize occupancy and profit.
The Importance of Hiring an Attorney
Italy’s rental market is undoubtedly beneficial for investors, but offers several procedural hurdles that complicate establishing and maintaining a rental property. The property must remain compliant to be listed on rental websites, avoid fines, and qualify for insurance. From assisting you with due diligence before your purchase and preparing contracts, to monitoring compliance as legal regulations tighten, attorneys can remain involved throughout the entire process, simplifying your responsibilities and protecting your interests. AL AdvaLux has a devoted, bilingual real estate team, ready to walk you through every step of setting up a successful investment property in Italy.
November 19, 2025