Buying a house in Italy

“The house practically pays for itself through the rental income” – I hear this phrase more often than I’d like, and every time I ask first whether the rental potential of this specific property has even been assessed. Most of the time, the honest answer is: “No, not yet.” In principle, a house bought in Italy can be let to holidaymakers. But simply owning the property, having an attractive property description or even an existing advert is no guarantee that you, as the new owner, will be able to legally continue this use.

I have therefore deliberately chosen not to write this article as a guide to letting, but rather as a guide to the decision to buy. This is because between ‘we like this house’ and ‘this house can be let to guests’ lie several distinct checks which you should ideally complete before making an offer to buy, not afterwards.

What type of letting are you planning?

The first question you should ask yourself is, surprisingly, a fundamental one: what exactly do you want to run? A private ‘locazione breve’ – that is, a short-term let of residential property – is not legally the same as a commercially operated holiday home, a bed and breakfast or an agriturismo. The Italian tax authority defines ‘locazione breve’ as a contract for residential property for a maximum of 30 days, entered by a natural person outside the scope of a commercial activity. Under this type of contract, laundry and cleaning services may be offered under certain conditions, but providing further regular guest services can alter the legal classification. The Italian Ministry of Tourism also expressly clarifies that a letting without additional accommodation services must be distinguished from a form of tourist accommodation.

What I would like to emphasise at this point is: In German, ‘Ferienhaus’ is a travel description, not a clear-cut legal category in Italy. Before you commit to a property, you should establish whether it is to be let privately on a short-term basis, operated as a ‘casa e appartamento per vacanze’, or classified in some other way. Different procedures apply depending on the region, and general guidelines can easily lead you astray here.

Can this house at this address be let out?

National rules alone are not enough. Regions and local authorities may impose further requirements or even local restrictions, and this is precisely what is often overlooked in many purchase negotiations. Florence is a prime example of this: the city generally requires a property-specific municipal licence, valid for five years, for short-term lettings. From 21 June 2026, no new short-term tourist lettings may be commenced in the designated sub-zones A1, A3 and A4 of Zone A. This does not mean that the whole of Italy has such restrictions – but it clearly illustrates why calculating a return on investment without checking the exact address is risky.

In Tuscany, too, the administrative procedure is specific: for a non-commercial tourist let, the start, any changes, any interruptions and the end of the activity must be reported electronically to the relevant SUAP. The regional location is therefore not merely a matter of style for the purposes of this article, but a concrete point for verification that you should clarify before making an offer to buy.

Check the land registry, building records and existing property listings

You should have a converted barn, additional bedrooms, a swimming pool or outbuildings checked against the land registry and local planning records before relying on a property’s rental potential. An existing land registry plan does not replace this check for compliance with building regulations – this should be carried out by an independent surveyor or a similarly qualified professional.

An important point to bear in mind during consultations: 

The statement that a property is ‘already successfully let’ does not automatically prove that this tenancy can simply continue. Ask specifically which permits and codes are issued to whom, and whether continuation is possible – in writing, not just verbally during the viewing.

CIN, regional registration and guest registration

The Codice Identificativo Nazionale, or CIN for short, is issued via the BDSR state database and must, as a rule, be displayed on the outside of the building as well as in adverts and promotional material. If there is also a requirement for a regional code, the CIN does not replace it. According to the Ministry of Tourism, the relevant local and regional requirements must first be met before applying for a CIN.

Particularly important for buyers: an existing CIN is not automatically transferred when there is a change of ownership. Whether it is possible to be included in an existing CIN depends on several factors. It depends on whether the relevant region or autonomous province permits the change to the regional code. Whether the relevant region or autonomous province permits the change to the regional code, as well as the previous and future form of operation, also play a role. Take this point seriously before you find a property attractive because of its existing letting history.

In addition, landlords of properties let for less than 30 days must submit guests’ details to the relevant Questura via the police portal Alloggiati Web. The police generally specify a deadline of 24 hours after arrival, although shorter deadlines may apply for short-term stays – this must be checked before the start of operations is aligned with the current regulations. A registration with a regional statistics platform does not automatically replace this police registration. In addition, local tourist tax and regional tourism registration fees may apply. Local tourist tax and regional tourism registration fees may apply – the amounts, exemptions and responsibilities vary by municipality and region and should be enquiries directly with the relevant local authority.

Safety regulations and on-site operations

For flats and houses used for private short-term or tourist lettings, the Ministry of Tourism requires functioning detectors for flammable gases and carbon monoxide. Suitable fire extinguishers are also required. The requirement is at least one per 200 square metres or part thereof, and at least one per floor. Although the Ministry’s FAQs do provide for an exemption from the detectors where there is verifiable evidence of a complete absence of gas and CO risk, do not rely on this without having the matter professionally clarified for your property. For commercially operated lettings, there are additional requirements regarding the safety of the installations.

These requirements are not something that only becomes relevant after the first booking. Structural suitability, safety equipment, necessary retrofitting and liability insurance must be factored into your purchase calculations from the outset. The question of who will handle guest arrivals, identity checks, cleaning, laundry, damage, the garden, the pool and emergencies – if you yourself live in Germany – is also relevant. Experience shows that this cannot simply be dealt with on the side.

Understanding EU law without overestimating its impact

Since 20 May 2026, EU Regulation 2024/1028 on data collection and sharing for short-term lettings has been in force.

 Among other things, it regulates registration systems and the exchange of data between platforms and the relevant authorities. However, it is not an EU-wide ban on holiday homes. This is not an EU-wide ban on holiday homes, and I would like to make that explicitly clear at this point, because it is precisely this confusion that frequently arises in discussions.

In addition, in September 2026, the European Commission presented a further proposal for possible measures in tight housing markets. However, a proposal is not yet a binding ban on letting. The local and national rules currently in force are what count when making your purchase decision; regulatory changes are an additional factor to consider, but not a fixed forecast that you need to factor in today.

What is left after costs and taxes?

For private short-term lettings, the Italian flat-rate tax ‘cedolare secca’ may be opted for under certain conditions – the Agenzia delle Entrate specifies 21 per cent for a selected residential unit and 26 per cent for the second. From the 2026 tax year onwards, this model for private short-term lettings is limited to a maximum of two properties used for this purpose; from the third property onwards, the activity must be classified separately as a business. This is a significant update compared with older guides, which still assume four properties can be let privately, and that is precisely why it is worth looking at the latest information rather than relying on outdated, half-baked knowledge.

Furthermore, do not confuse the 21 per cent with the final tax on each individual payment: intermediaries who collect short-term rental payments or facilitate such payments deduct a 21 per cent withholding tax as an advance payment under certain conditions. If you own several properties or are subject to a different form of taxation, the actual annual tax must be calculated separately. For German owners, the German Italian double taxation agreement also comes into play: under Article 6, income from a property located in Italy can, in principle, be taxed there. However, how this is considered in the German tax system depends on your personal residence and the specific type of income. This should be assessed for you by a tax adviser familiar with both countries – not a blanket statement such as ‘tax-free in Germany’ or ‘always subject to double taxation’.

To put the issue into perspective, here is a calculation that is purely illustrative and does not constitute a market forecast:

This example assumes arbitrarily chosen costs and is expressly not an average return on Italian holiday homes. Your actual calculation must also clarify what costs you incur for guests. It must also clarify exactly how Italian taxes are levied and whether there are any tax implications in Germany. Furthermore, additional information must be provided regarding loan instalments, your own use of the property, the specific way in which Italian taxes are levied, and the potential tax implications in Germany.

Combining personal use and letting honestly

This brings us to the point that is particularly close to my heart as a bridge between our two brands. Anyone who reserves the very best holiday weeks for themselves and their family cannot let out these weeks at peak-season rates at the same time. That sounds obvious, but it is surprisingly often overlooked in calculations. A credible split-use model prioritises your own use first. It only counts the remaining weeks that can realistically be let as potential income. It only counts the remaining weeks that can realistically be let as potential income – anything else is wishful thinking that will come back to haunt you when you look at the calendar, if not before.

Checklist before making an offer to buy

Before you make an offer, I would advise you to go through these nine steps in order: 

• First, define the intended use – owner-occupation, occasional private letting or professional accommodation business. 
• Next, check not just the region but the specific address with the relevant local authority and the regional council. 
• Have the building records checked against the land registry and planning permissions by an independent surveyor. 
• Scrutinise any existing business operations – check current listings, CIN, regional code and booking history in writing; do not interpret this as a guarantee of sale.
• Quantify the obligations: registration, guest registration, tourist tax, statistical reporting, safety upgrades and insurance. 
• If the property is already let, obtain details of actual bookings, final prices achieved, cancellations and operating costs, rather than accepting a quoted gross turnover without verification.
• Work through two scenarios: a conservative one with few weeks left, and a baseline scenario excluding the high-season weeks you will use yourself. 
• Seek expert clarification on Italian taxation and German Italian reporting obligations.
• And only commit yourself once any outstanding issues regarding permits or usage have been clarified before the purchase offer and preliminary contract or have been legally secured as conditions.

Frequently asked questions about letting a house in Italy

As a German national, am I allowed to let my house in Italy to holidaymakers?

In principle, yes. However, the use of the property, regional and local regulations, and the tax treatment must be clarified for the specific property.

Is the seller’s existing CIN sufficient?

No, not without verification. Whether it is possible to be included in the existing CIN depends on regional regulations and the type of business operation.

Do I need a regional code in addition to the CIN?

If the region requires such a code for the type of accommodation in question, then yes – the CIN does not replace it.

Do guests have to be registered with the police?

Yes. For short-term lettings, guest details must be submitted to the relevant Questura via Alloggiati Web.

How much tax is payable on rental income?

The Italian ‘cedolare secca’ tax rate can be 21 per cent for one rented unit and 26 per cent for a second; eligibility and cross-border implications should be assessed on a case-by-case basis.

Is letting worthwhile if I also want to use the property myself?

Renting out the property is only worthwhile if you draw up a budget that honestly considers the weeks you use it yourself, the actual running costs, realistic occupancy rates, taxes and any financing arrangements.

Conclusion

The sequence I would urge you to follow is not ‘buy a house, pay 21 per cent tax and start letting straight away’, however tempting this simplified approach may sound. The correct sequence is first clarifying the legal structure, exact address, possible change of operator, registration and operation – only then calculate the return. If you follow this sequence, you will not only buy a magnificent home, but one that can deliver what you expect from it.