If you are renting out your property in Italy for tourist purposes, it is always recommended to use a tourist rental contract.
The tourist lease is regulated by section 53 of the Tourism Code, and section 1571 of the Civil Code, and provides these main characteristics:
– a consensual lease between the tenant (guest) and the landlord (host);
– a limited duration, which generally cannot exceed 3 months;
– only residential use of the property is allowed and with a tourist purpose;
– the tourist lease can be arranged privately or through one of the leading platforms in the tourist rental market, such as Booking, Airbnb, or similar;
– at the end of the period the lease ceases automatically and normally there’s no need to give notice of termination. subletting is not allowed in this type of stay.
It is always recommended to enter into a contract with your guests, even if it is not always mandatory and having guests sign the holiday rental contract before their arrival, to avoid misunderstandings.
It should be noted that there is no obligation to register the tourist rental contract with the Italian Tax Agency if the duration is less than 30 days.
Beware that if the same guest returns several times in the course of the same year, and the various stays add up to 30 days, or exceed them, you will be obliged to register the tourist lease with the tax agency in Italy.
In any case, regardless of the duration of the tourist lease, section 19 of Decree-Law 119/2018 provides that it is mandatory to register the guests with the Police portal, by 48 hours of their arrival.
Each holiday home must have a Regional Identification Code (so called CIS) to be displayed in all communications advertising the property. So if you list your flat on Airbnb, you will also have to include the CIS. You get the CIS by registering at www.dms.puglia.it.
Tax obligations (taxes and income declaration in Italy)
As far as taxation is concerned, income from tourist lease can be taxed in two different ways: the income tax return and the flat-rate tax.
With the first one, income from short-term rentals is assimilated in all respects to other income, such as pension or employment income, and taxed accordingly through the italian progressive rate system. (particularly suitable for residents in Italy)
Alternatively, the landlord can choose the ‘cedolare secca’ option, i.e. he can pay a fixed tax of 21% on the rents received for short leases, without having to include them in his tax return. (recommended for those who are not resident in Italy)
In conclusion, a tourist rental contract is a document that details the rights and obligations of both parties and guarantees the respect of the property and the stipulated clauses, turning out to be the best way to protect your investment.
