Short-Term Rental Tax Increased by 21-26 % . Federal Hotel supported Fratelli d'Italia in 2019.

On Monday, a government council approved a bill that affects millions of Italians.

Article 19 raises by a quarter the tax on short-term rental properties - starting from the second - increasing the rate from the current 21% to 26%. In fact, if the measure is confirmed, it will result in a significant tax increase for those who use their properties for commercial purposes, whether vacation homes or guest houses, and effectively tiering it to hotels. The reduced rate will remain only for rentals of more than 30 days.

Associations not related to the hotel industry have voiced their dissatisfaction, while hotel associations, along with mayors of tourist cities, rejoice at the measure, fearing the depopulation of historic centers. Unsurprisingly, Federalberghi has excellent relations with two of the three government parties. In fact, as Fatto Quotidiano reports, only one party, which represents 27,000 hotels out of 33,000, has decided to fund this association directly, and that is Fratelli d'Italia, which now heads the government. In 2019, the Roman association transferred 4 thousand euros to the coffers of Meloni's party, a modest sum, but it shows where they stand, given that no other party has received similar "liberal contributions". Its current president, Bernabo Bocca, was a deputy for Forza Italia in the XVII Legislative Assembly.

The headline and location ("measures to combat tax evasion") do not make it immediately clear what they are aimed at, namely two things: tax revenues in a financial crisis and bypassing a veto, such as Salvini's, who had just one tweet to stop the reform of real estate letting for a short period of time. Here it is: "Article 19: Changes to the tax laws on short-term rentals and gain on the sale of real estate for a fee. "

What the implications for the public purse (and for families) will be is not yet known. While it will surely result in nearly a quarter of the tax burden for millions of Italians, there is no clarity on the numbers. For several days, various options were discussed in the Ministry of Economy and the Ministry of Tourism and, according to the Repubblica newspaper, among a narrow group of deputies and senators from the right-wing opposition who managed to familiarize themselves with the draft (already final) budget, which is expected in the coming days in Parliament. According to preliminary information from the paper (yesterday) there is discontent over the decision, which was not agreed with the leaders of the Fratelli d'Italia, League and Forza Italia groups.

The tax hike will trigger discussions as well as nervousness within the coalition, given that League leader Matteo Salvini froze (without warning allies in advance) the short-term rent bill that Minister Daniela Santanque worked on with Fratelli d'Italia parliamentarians. The essence of the bill was a two-day limitation on getting the favorable tax rate. "We cannot restrict the freedom of citizens," he said.