Italy Plans to Increase Taxes on Flat Owners with Multiple Short-Term Rentals, Reports Reuters

Italy’s government is set to increase taxes on short-term rentals for individuals renting out more than one property, according to a draft of the 2024 budget obtained by Reuters.

This decision follows criticism directed at Airbnb and other short-term rental services, which are seen as contributing to a lack of affordable housing in popular tourist areas. Presently, Italian law permits property owners to rent out their apartments with a tax rate of 21% on their earnings.

Prime Minister Giorgia Meloni plans to raise this tax rate to 26% for those renting out more than one apartment during each tax period, as indicated in the draft.

In a shift from earlier proposals, the government has opted not to extend the increased tax rates to individuals renting out a single property. Meloni announced that the budget bill for 2024, as agreed upon by her cabinet, will be presented to parliament on Monday, with the approval process anticipated to last until December.