The government is planning further changes to short-term lettings from the autumn, aiming to tackle the problem more effectively.
real estate crisis, but also the control of rental prices, then the stricter purchase conditions Golden Visa.
The process for these leases will be reopened from September, so that final decisions can be made by November on the type and extent of the changes, as there will be a more complete view of the impact of the new tax measures implemented at the beginning of the year.
Based on the plans of the Ministry of Economy and National Finance, the new interventions aim, among other things, to expand the number of owners who can offer short-term rentals, even with restrictions on the number, duration and geographical coverage of rentals.
In particular, the discussion table between the ministry and the agencies on the new short-term rental regime should include:
1. Numerical, locational and time limitations on short-term rentals per year. Furthermore, based on what is already provided for in paragraph 8 of article 111 of Law 4,446/2016: “By joint decision of the Ministers of Economy and National Finance, Development and Tourism, geographical areas may be defined for reasons related to the protection of residence where restrictions on the availability of properties for short-term rental will be applied as follows:
- Do not allow the short-term rental of more than two properties per beneficiary’s income tax number.
- The rental period for each property may not exceed 90 days per calendar year and for islands with fewer than 10,000 inhabitants 60 days per calendar year. The duration provided for in the previous subsection may be exceeded if the total income of the lessor or sublessor from all properties available for rental or subletting does not exceed EUR 12,000 during the tax year in question.
2. Define a maximum number of properties that will be rented out on a short-term basis per municipality, and the relevant stakeholders must indicate that in each area the housing needs, the rental value, and the number of properties available for short-term rental should be recorded. Before any new changes, the government’s economic team wants to see the results of the latest legislative provisions and, based on them, “block” any new measures for rentals. Current measures It should be noted that since the beginning of this year:
- Individuals who own three or more properties under a short-term rental arrangement are required to set up a business by forming a sole proprietorship. They are now liable for the corresponding insurance contributions and must pay VAT of 13% on the gross short-term rental income they obtain from all their properties, which are operated under this arrangement.
- All short-term rentals are subject to a “climate resilience fee”, which varies between €0.5 and €10 per day.
- The fine for failure to register in the Land Registry for Short-Term Rentals, which until 31-12-2023 amounted to 5,000 euros and was applied to the property manager, whether owner, beneficiary or third party, is now set, per fiscal year, at 50% of the gross income of the last fiscal year and at least 5,000 euros.
- A 60-day limit has been imposed on the length of the lease for it to be considered short-term.
- If available for short-term rental, all apartments in an apartment building or residential complex will be considered tourist accommodation and must be licensed.