Conclusion: Navigating the New Calculus of Italian Hosting. Find out more about projected net rental revenue impact Italy.

The proposed tax hike from 21% to a flat 26% on short-term rental income is far more than a simple line item in a budget; it is a fundamental re-evaluation of the economic contract between the state and the property owner. As of today, October 25, 2025, the proposal is still facing a fierce legislative battle, with key coalition members threatening to strike it down or heavily amend it. However, the certainty lies in the trend: the Italian government is signaling a permanent move toward tighter regulation, higher compliance standards via the CIN code, and a lower net return for hosts. Whether the final tax lands at 26% or settles at a compromise rate, the era of the extremely favorable single-property tax break appears to be ending.

Key Takeaways and Final Actionable Insight. Find out more about short term rentals housing affordability Rome strategies.

* **The Numbers Are Real:** If passed, a single-property host could lose around €1,300 annually, and the net retained revenue percentage is projected to fall from ~34% to ~28%. * **Political Uncertainty is High:** The proposal is *not* law yet. The opposition from Lega and Forza Italia means significant changes could still occur before year-end. * Compliance is Non-Negotiable: Even if the tax rate shifts, the need to adhere to new administrative rules like the CIN registration remains a core element of the 2025 regulatory overhaul. The time for passive observation is over. Hosts must actively monitor the parliamentary deliberations to understand the final fiscal reality, while simultaneously reviewing their Italy’s short-term rental tax regime to determine the long-term viability of their current business model. The economic calculations are clear; now is the time for strategic action. *** For further reading on the complexities of the previous tax structure, consult guides on Italy’s official revenue agency documentation on the flat tax (External Source 1). To track the political battle shaping this future, follow updates from established Italian news sources tracking the budget process (External Source 2).