Cedolare Secca is an Italian flat-rate income tax withholding system for short-term rentals. Under Law Decree 50/2017, as amended by the 2024 Budget Law, non-professional hosts renting out properties in Italy for stays of up to 30 days pay a 21% tax rate on their earnings. Holidu withholds this tax and pays it directly to the Italian tax authority, Agenzia delle Entrate.

Who is affected by Cedolare Secca?

The regulation applies to non-professional hosts. You are considered a non-professional host if you meet the following conditions:

• You rent out three or fewer properties short-term (effective 1 January 2026).
• You are not registered for VAT and do not have a valid EU VAT ID.
• You do not have a commercial registration number.

If you are eligible for Cedolare Secca, current regulations do not allow you to opt out.

How does Cedolare Secca affect my payouts?

For non-professional hosts, Holidu withholds 21% of your earnings and remits it to Agenzia delle Entrate on your behalf. The 21% applies to the gross payout amount, before any VAT or Holidu fees are deducted.

The withholding also applies to the extra fees you charge guests, such as:

• Cleaning fees
• Towel fees
• Any other extra fees you charge

The only exception is tourist tax included in the guest price.

Does Cedolare Secca apply to professional hosts?

No. Professional hosts are not affected by this law, and they continue to receive their full payouts from Holidu. You are considered a professional host if you meet at least one of the following conditions:

• You hold three or more properties for rent.
• You have a valid EU VAT ID.
• You have a commercial registration number.

What tax forms does Holidu handle for me?

Holidu prepares and submits the tax reporting forms for you. These include:

• The F-24 form, which Holidu uses to pay the withheld taxes to the Italian tax authority each month.
• The Certificazione Unica (CU), an annual report that shows the taxes withheld on your earnings. You receive it by 16 March of the following year. The CU cannot be co-owned, so only one name can appear on it.
• The Modello 770, which Holidu submits to Agenzia delle Entrate by 31 October each year. It reports the taxes withheld for the previous period.

What should I do if my host status changes?

If you become a professional host, you must update your account details. This applies if you:

• Hold three or more properties.
• Obtain a valid EU VAT ID.
• Obtain a commercial registration number.

How are properties counted for the Cedolare Secca threshold?

The definition of a property depends on the cadastral and legal autonomy of each unit. Even if you have several apartments listed on Holidu, they may count as one property under Italian law. If you are unsure how this applies to your situation, check with your tax advisor.