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Short-term rentals in Italy — is it still profitable?

·9 min read
Short-term rentals in Italy — is it still profitable?

The short-term rental market in 2026

Italy is the third most popular tourist destination in the world. Over 65 million tourists annually generate enormous demand for accommodation. Platforms such as Airbnb, Booking.com and Vrbo have become the standard.

Profitability by region

The highest returns are offered by Amalfi (8-12% gross), Florence (6-9%), Rome (5-8%) and Lake Como (7-10%). Smaller tourist towns like Cinque Terre and Puglia offer 6-9% at a lower purchase price.

Legal regulations

Since 2024, registration for a CIN (Codice Identificativo Nazionale) has been required for all short-term rental properties. Many cities (Florence, Venice, Rome) have introduced numerical restrictions and licensing requirements.

Rental taxes

Income from short-term rentals is subject to a flat cedolare secca tax of 21% (or 26% from the second property). This is more favourable than taxation on general principles.

Property management

Professional management companies charge 15-25% of revenue. Alternatively, co-hosting platforms allow for partial self-management with the help of a local partner.

#Investments#Italy#Real Estate