Cedolare Secca is an Italian flat-rate income tax of 21% that applies to short-term rental earnings from stays of up to 30 days. For eligible non-professional hosts, Holidu withholds this 21% from your payout and pays it directly to the Italian tax authority, Agenzia delle Entrate.

Who does Cedolare Secca apply to?

Cedolare Secca applies to non-professional hosts renting out properties in Italy. Under Law Decree 50/2017, as amended by the 2024 Budget Law, you are generally considered a non-professional host if you meet the following conditions:

• You rent out a small number of properties short-term. The current rules count hosts with three or fewer properties, 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.

Who is not affected?

Professional hosts are not subject to this withholding. You are considered a professional host if you have a valid EU VAT ID, a commercial registration number, or three or more properties for rent. If you are a professional host, nothing changes for you, and you continue to receive your full payouts from Holidu.

How does the 21% withholding work?

For non-professional hosts, Holidu calculates the 21% withholding and remits it to Agenzia delle Entrate on your behalf. The withholding is calculated as follows:

• The 21% is applied to the gross payout amount, before any VAT or Holidu fees are deducted.
• Cleaning fees, towel fees, and any other extra fees you charge guests are also subject to the withholding.
• The only exception is tourist taxes included in the guest price, which are not subject to the withholding.

What tax forms will I receive?

Holidu handles the required tax reporting for you. The main forms are:

• F-24: Holidu uses this form to pay 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 can only be issued in one name, so it cannot be co-owned.
• 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?

If your status changes, update your account details so that your payouts are calculated correctly. Your status changes if you:

• Hold three or more properties for rent.
• 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. Several apartments listed on Holidu may still count as one property under Italian law. Because of this, the number of properties you have may differ from the number of listings in your account. If you are unsure how the rules apply to your situation, check with a qualified tax advisor.