Short-term rental: Italian dry strength rate vs. increase, best Greek approach

Mediation on the double rate for short-term rentals does not convince the "Forza Italia" party. According to the latest proposal, the tax rate for short-term rentals, which has sparked so much discussion in recent days, should remain at21% for owners who rent out only one property for less than30 days, and increase to26% for those who rent out two or more properties for such activity.

Forza Italia, which has been against the increase up to26% from the very beginning, widespread among all property owners as envisaged by the initial versions of the financial law, is proposing a new idea ahead of the coalition meeting tomorrow. Instead of raising taxes, it is essential to introduce a national identification code for rental properties, following the Greek model. This way, it is explained that rather than further encouraging owners to evade taxes and operate in the shadow economy, the opposite effect can be achieved, while also collecting much more tax revenue than by tightening taxes. According to Forza Italia representative Raffaele Nevi, speaking on Sky Agenda, this proposal will be brought to the table by Deputy Prime Minister Antonio Tayani at Palazzo Chigi tomorrow.

"The proposition, however, is not new."

The draft law on short-term rentals, which has been worked on for a long time by the Minister of Tourism, Daniela Santanché, "in order to ensure competition protection, territory safety, and fight against illegal forms of hospitality", provides for the automated assignment of a national identification code "Cin" by the Ministry of Tourism for each residential property rented out for tourist purposes.

The Ministry of Tourism assigns a CIN to hotels and other accommodations, determined in accordance with current regional regulations, through a corresponding automated procedure and preliminary electronic application submission. After receiving the CIN, various residential properties intended for short-term rental, as well as hotels and other accommodations, will be included in a national database, which is expected to be public and freely accessible on the official website of the Ministry of Tourism.

The Santankye proposal also stipulates that anyone who offers or rents out residential premises for tourist purposes, including as an intermediary, is required to display the Cin at the entrance to the residential premises and the building, as well as to include it in any advertisement posted anywhere. In turn, entities managing internet portals are obliged to indicate the Cin of the residential premises in the advertisements posted on their portals, after verifying compliance with the information contained in the database. In any case, it is prohibited to publish advertisements without the Cin. In case of violation, the Santankye bill provides for a fine ranging from 500 to 5000 euros and an additional penalty that mandates the immediate removal of the illegal advertisement, which must also be enforced by the administrators of the internet portals used. Anyone renting out accommodation for tourist purposes without a Cin will face a fine of an even greater amount, ranging from 800 to 8000 euros.

Now let's see if Forza Italia's proposal will convince their allies or not.