Italy’s governing coalition has ultimately abandoned plans to abolish the existing tax relief on short-term rentals as part of the amendments to the 2026–2028 budget, majority lawmakers announced.
Short-term rentals — hosted mainly on platforms such as Airbnb — remain a highly popular option in Italy’s tourist destinations. However, they have become a focal point of political debate and social pressure, as many European cities face overtourism and rising rents for permanent residents.
The reform that didn’t pass
Prime Minister Giorgia Meloni’s government had proposed scrapping the reduced 21% tax rate currently enjoyed by owners on one short-term rental property — a rate lower than the standard 26%. The aim was to incentivize long-term rentals for local residents.
The measure, however, met strong resistance from the government’s coalition partners, the League and Forza Italia, and was eventually withdrawn.
Marco Celani, head of Aigab — the Italian association of short-term rental operators — who had lobbied intensely against the tax hike, welcomed the decision, arguing that the change would have primarily hurt middle-income owners and boosted tax evasion.
“The fact that they realised it wasn’t a good idea is a positive development,” Celani told Reuters.
Stricter rules for multi-property owners
Although the tax burden on the first property will not change, the government is moving toward tightening the framework for owners with a larger number of properties.
Currently, those who own more than four short-term rental properties are classified as professionals and face heavier taxation and stricter obligations. According to majority lawmakers, this threshold is expected to drop to more than two properties, thereby expanding the number of owners considered business operators.
The measure was agreed upon after high-level consultations between Meloni, Economy Minister Giancarlo Giorgetti and coalition party leaders.
The 2026–2028 budget, presented in October, is currently undergoing parliamentary review — a stage during which significant amendments are common. Final approval is expected at the end of December.
