@Francesco602
@Elaine701
There’s little we can do about it. @Francesco602 got it right – that’s simply how things are.
Individuals alone cannot really change anything. Only lawmakers can step in to reform a legal framework that belongs to a different era - a time when property owners faced relatively limited costs to rent out their properties in a simple and fairly uniform market.
This is not an argument against taxation. It is a question of whether the tax system is still aligned with economic reality - whether the taxable amount truly reflects the income that a person actually generates.
The current rules governing rental income in Italy were created for a market that no longer exists.
Decades ago, renting out a property was a relatively simple activity: the owner provided the property, the tenant paid the rent, and the costs involved were limited and predictable. Today, the short-term rental market operates in a completely different environment.
Digital platforms have become the standard bridge between property owners and guests. Cleaning services, laundry, utilities, minor repairs, insurance, and other recurring expenses are now an essential part of running a rental activity. These are not personal expenses or lifestyle choices - they are operating costs directly connected to generating rental income.
Yet, under the current Italian tax system, almost none of these costs are recognized.
Rental income is generally taxed on the gross amount received under the rental agreement, without allowing taxpayers to deduct the actual expenses incurred to produce that income. Apart from a limited flat-rate deduction provided by law, the real costs of operating the rental are effectively ignored.
Consider a simple example: if a property owner uses a platform such as Airbnb to find guests, the platform’s commission is not money the owner receives - it is a cost paid to obtain the rental income. The same applies to cleaning companies, utility providers, maintenance services, and insurance. These expenses are no different in principle from any other business-related costs necessary to generate revenue.
The difference is that many other economic activities are taxed on their actual profit: revenue minus costs. Rental income, however, is treated differently because traditional property rentals are not classified as hospitality businesses such as hotels, B&Bs, or guesthouses.
This creates a gap between legal classification and economic reality.
A salaried employee who needs a car or public transport to reach the workplace also faces unavoidable costs connected to earning a living. Yet fuel, insurance, commuting costs, tolls, and parking are generally considered personal expenses and are not deductible.
Italy’s tax system has always allowed deductions only for specific categories of expenses — such as certain medical costs, home renovations, mortgage interest, domestic worker contributions, and other items expressly recognized by law.
That is a legitimate policy choice. But it raises an important question: does the current treatment of rental income still reflect the taxpayer’s real ability to contribute?
The Italian Constitution establishes the principle that taxation should be based on a person’s actual economic capacity. When a tax is calculated on gross revenue while ignoring the necessary costs incurred to generate that revenue, many believe the connection between taxation and real wealth becomes increasingly difficult to justify.
The issue is not whether rental income should be taxed. The issue is whether it should be taxed according to the income that is actually produced - not simply the money that passes through the system before expenses are paid.
