Italy keeps tax break for short-term rentals
Italy’s government has dropped plans to remove a tax break for short-term rental properties, lawmakers said Thursday, preserving the reduced 21% tax rate for landlords. The proposed change, part of amendments to the 2026-2028 budget, aimed to encourage long-term rentals but faced opposition from coalition partners, including the League and Forza Italia.
Prime Minister Giorgia Meloni and Economy Minister Giancarlo Giorgetti held high-level talks with coalition leaders before canceling the measure. Landlords will still benefit from the lower tax on one short-term rental property, though authorities may tighten rules for those managing multiple properties. Currently, landlords with more than four rentals must register as a business; the threshold could be lowered to two, News.Az reports, citing Reuters.
The budget is under parliamentary review and is expected to be approved by the end of December, with further changes possible during the legislative process.
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