Recent regulatory changes have introduced significant updates regarding short-term rentals in the territory of Manerba del Garda. In particular, it has been established that the flat-rate tax at 26% will only apply from the second rented property onwards, while the first or only rented property will remain subject to the 21% tax rate.
Circular No. 10/E/2024 provides detailed instructions to tax offices regarding the changes introduced by the 2024 Budget Law (Law No. 213 of December 30, 2023). These provisions are particularly relevant for property owners and real estate intermediaries operating in the short-term rental sector.
The new regulations require real estate intermediaries and operators of online platforms to withhold a 21% advance payment on payments made to the landlord. This obligation is independent of the landlord’s chosen tax regime.
The 2024 Budget Law has aligned national legislation with a ruling by the Court of Justice of the European Union on December 22, 2022, regarding the taxation of non-resident intermediaries.
The flat-rate tax rate will be 26% for the second rented property onwards, starting from income earned from January 1, 2024. However, owners who rent multiple units can choose one property to benefit from the reduced rate of 21% by indicating it in their income tax declaration for each tax period.
To simplify tax compliance, intermediaries must withhold a 21% advance payment on rental payments, regardless of the beneficiary’s chosen tax regime. The landlord must then calculate the tax due, deduct the advance payments, and pay any remaining balance within the deadlines set for income tax payments.
Non-resident entities with a permanent establishment in Italy must fulfill their obligations through the same establishment. Intermediaries resident in another EU Member State without a permanent establishment in Italy can fulfill their tax obligations directly or appoint a tax representative in Italy.
Non-EU entities with a permanent establishment in another EU Member State must fulfill their obligations through that establishment or appoint a tax representative if not present in Italian territory.
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