New Short Rental Law 2026: What changes if you own more than 2 properties?

The 2026 Budget Law (Law no. 199 of December 30, 2025) has introduced significant changes to the short-term rental sector in Italy. While until last year the threshold for operating as a "private individual" was set at four properties, from January 1st, 2026, the scenario changes: in this article, we clarify how the new regulations impact those who own 3 or more properties intended for short-term rentals and why switching to a VAT registration (Partita IVA) can bring new opportunities.

The threshold is lowered: business activity starts at 3 properties

The core of the reform concerns the "presumption of business activity": the lowering of the limit beyond which short-term renting is considered an entrepreneurial activity. Here is the taxation scheme starting from 2026:

• Up to 2 properties: it is possible to continue operating as a private individual, applying the "cedolare secca" flat-rate tax (21% on the first home chosen by the taxpayer, 26% on the second).
• From 3 properties upwards: the obligation to open a VAT registration (Partita IVA) is automatically triggered.

Note on the calculation: The number of properties is calculated by summing the distinct cadastral units. These count in their entirety even in the case of co-ownership. Furthermore, properties managed by different operators or property managers, as well as those managed directly by the owner, must be added together.

VAT Registration: A fiscal opportunity?

Owners can usually choose between two paths to manage their business activity:

• Flat-rate Regime (Regime Forfettario): Ideal for those who want a subsidized tax rate (often at 15% or 5% for new VAT registrations) calculated on a fixed base, with extremely streamlined accounting management.
  • Plus: Simplified accounting and no VAT on invoices.
• Ordinary Regime (Regime Ordinario): Advantageous for those who incur high renovation or management costs, as it allows for the analytical deduction of all sustained expenses.
  • Plus: If documented expenses are high, the tax base is drastically reduced.

The "Comodato d’Uso" (Gratuitous Loan) Case

This limit applies to properties owned or leased for tourism purposes. The regulation does not apply, however, if the house is given on a gratuitous loan (comodato d'uso) to a third party – for example, a family member – with an explicit right to sub-lease. In this way, the family member will manage the unit as their own "under-threshold" property, benefiting from the regimes provided for private individuals.

Wonderful Italy: by your side through the changes

In a changing regulatory landscape, Wonderful Italy remains your point of reference to clear any uncertainty related to the 2026 Budget Law: our experts are available to transform new bureaucratic obligations into a strategy to maximize property profitability.

Discover how we relieve owners of all bureaucratic operations and the complexity of compliance for a worry-free management experience. Contact us for a personalized consultation.