Taxes in Italy

[Daniela2846]

Hello Airbnb Community, 

I am a non-italian renting a my house in italy and I'm a little confused by the income taxes requirements in Italy. I understand that Airbnb will withhold 21% of the rent-income for the agenzia delle entrate. If I only use Airbnb and they aer withholding this 21% of all my bookings, do I still need to do a income tax declaration separately ?

thank you in advance!

Daniela

[Rebecca]

Hi @Daniela2846 👋

Hope you're well. I'm going to tag some Hosts from various places in Italy who may be able to support. @Andrea6232, @Angela1056 & @Roberto2387, are you able to support @Daniela2846 with income tax requirements in Italy? 🇮🇹 

Many thanks in advance 🤗

[Angela1056]

Ciao @Daniela2846 

The convention against double taxation between Italy and Germany, number 459 from 24th nov. 1992, with regard to rental income, provides that the income that a resident of a Contracting State (Germany) obtains from immovable property located in the other Contracting State (Italy) is taxable in that other Contracting State.

It is indifferent whether the payment is in Italy or in Germany.

Airbnb will notify the Revenue Agency (via the Irish Tax Authorities) of your Tax ID as an income earner via the platform.

In addition to the periodic payment of the IMU, the fees received in 2024 must be included in the Tax Return to be filed in 2025, with the possibility (being a property located in Italy) to opt for the tax, replacing IRPEF and additional, of 21% (cedolare secca). 
Anyway, this is my personal knowledge as host and tax payer on Airbnb and you’d better consult an accountant. 

I’m also wondering how you, as a non resident, managed to register your property to the Municipality, the Region, Alloggiatiweb and tourist tax (if required) form abroad.

[Helen3]

income tax is the tax you pay on the profit for your STR business @Daniela2846  you need professional advice from an accountant with knowledge of dual taxation between the country you live in and Italty @Daniela2846 

[Adam2377]

Hi @Daniela2846, did you ever work out if you need to do an additional tax return in Italy if airbnb is already paying the 21% rental tax on your behalf? I'd hugely appreciate your knowledge on this! 

[David13633]

Hi @Adam2377 (and the rest of this thread)! This is actually a super complicated and new topic. As you know, Airbnb is required now to withhold 21% (and they will typically automatically pay this) unless you opt out in certain jurisdictions, including Italy. It was a major legal battle. 

The short answer to all of this is that you are still required to FILE your taxes in Italy (even if you are a non-resident). Depending on your situation, you might owe more than 21%, less (if you have deductions), or the same. It really depends on the details of your filing. 

In addition, depending on where you are from/resident you will have obligations to file and claim this rental income on your tax return. If there is a double-taxation treaty, you will be able to offset certain tax payments you already made/owe (ex: 21%). You will need to gather certain documentation that airbnb provides as well to ensure you have accurate information (Certificazione Unica).

I hope this helps! Feel free to message me if you need more support. For non-residents with property in Italy, here is a platform that can help streamline your filing obligations with Agenzia delle Entrate.

[David13633]

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