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 properties in Italy for stays of up to 30 days pay a 21% tax rate. Holidu withholds this tax from your earnings 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 these conditions:

• You have three or fewer properties rented out 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 much tax is withheld from my earnings?

For non-professional hosts, Holidu withholds 21% of your earnings. The tax is calculated on the gross payout amount before any VAT or Holidu fees are deducted.

The following amounts are also subject to the withholding:

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

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

Does Cedolare Secca affect professional hosts?

No. Professional hosts are not affected by this law, and nothing changes for them. They continue to receive their full payouts from Holidu.

You are considered a professional host if you meet at least one of these conditions:

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

How does Holidu handle tax reporting for me?

Holidu prepares and submits the required tax forms on your behalf. You do not need to file these forms yourself. The forms are:

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

What if my host status changes?

Your status can change over time. You become a professional host if you hold three or more properties, obtain a valid EU VAT ID, or obtain a commercial registration number. If your status changes, update your account details so your payouts and tax withholding are handled correctly.

How is a property counted for the Cedolare Secca threshold?

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