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2026 Italian tax comparison

Forfettario vs cedolare for short-term rentals: above €15,000 of revenue P.IVA wins, even with a single property

Cedolare secca (Italy's flat-rate rental tax) at 21% is not always the best choice. The regime forfettario startup variant, even with a single property, beats the cedolare starting at roughly €15,000 in annual gross revenue. At €20,000, the gap is about €950 more net profit per year. On this page you'll find the comparison table, exact breakeven thresholds, and when cedolare remains the right call.

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In sintesi

Example at €20,000 annual revenue, single property: regime forfettario startup with 35% INPS social-security reduction yields €16,752 net, cedolare 21% yields €15,800 net, cedolare 26% yields €14,800 net. P.IVA forfettario startup wins by about €950/year.

Breakeven thresholds (above which forfettario wins):

  • Forfettario startup with 35% INPS reduction vs cedolare 21%: above ~€15,000 annual revenue
  • Forfettario startup without INPS reduction vs cedolare 21%: above ~€23,100
  • Forfettario from year 6 onward (15% rate, with INPS reduction) vs cedolare 21%: above ~€17,000
  • Forfettario vs cedolare 26% (second property): above ~€11,900 with the INPS reduction, above ~€18,300 without

Caveats: the calculation assumes a 40% profitability coefficient (hospitality activity — hosts/holiday homes), 2026 INPS Gestione Commercianti contributions (Circ. 14/2026), and no other relevant income. Verify with your commercialista (Italian accountant).

What are the exact numbers across 6 tax scenarios at €20,000 of revenue?

Same gross revenue (€20,000), single property, different regimes. The gap between the best and the worst regime (cedolare 26%) is nearly €2,000 in annual net profit.

Item Forf. startup
(with 35% INPS red.)		 Forf. startup
(no INPS red.)		 Forf. from yr 6
(15% rate)		 Cedolare 21%
(first property)		 Cedolare 26%
(second property)
Revenue received 20.000,00 20.000,00 20.000,00 20.000,00 20.000,00
Gross taxable income 8.000,00 8.000,00 8.000,00 20.000,00 20.000,00
INPS deduction -2.997,57 -4.611,64 -2.997,57 n/a n/a
Net taxable income 5.002,43 3.388,36 5.002,43 n/a n/a
Substitute tax 250,12 169,42 750,36 4.200,00 5.200,00
Annual net profit 16.752,31 15.218,94 16.252,07 15.800,00 14.800,00

Notes on INPS calculation: INPS Gestione Commercianti 2026 (INPS Circular 14/2026) ≈ €4,611.64/year (€1,152.91 × 4 quarters); with the 35% reduction it drops to roughly €2,997.57/year. The 35% reduction must be explicitly requested when registering with INPS.

40% profitability coefficient for room-rental and holiday-home businesses (ATECO 2025: 55.20.41 B&B, 55.20.42 holiday homes). For a property manager working on behalf of third-party owners (ATECO 68.3x) the coefficient is 86%: these numbers do not apply. Verify the ATECO code and current rates with your commercialista.

Exact breakeven thresholds: at what revenue does forfettario start winning?

The €20,000 in the example is just one point on a curve. Here are the precise thresholds, computed case by case. Below the threshold, cedolare secca wins. Above it, forfettario wins.

Comparison Breakeven (annual revenue) What it means
Forf. startup with 35% INPS red. vs cedolare 21% ~€15,000 Below: cedolare 21%. Above: forfettario.
Forf. startup without INPS red. vs cedolare 21% ~€23,100 Full INPS raises the breakeven point.
Forf. from year 6 (15% rate) vs cedolare 21% ~€17,000 Once the startup phase ends, the advantage shrinks.
All forfettario variants vs cedolare 26% ~€11,900 (with red.) / ~€18,300 (without) On the second property, P.IVA almost always wins.

The formulas (for those who want to check the math)

Let R = annual revenue in euros:

  • Cedolare 21%: net profit = R × 0.79 (no INPS, no deductions)
  • Cedolare 26%: net profit = R × 0.74
  • Forfettario startup with 35% INPS reduction: net profit ≈ R × 0.98 − €2,847.69 (because you pay ~€2,998 deductible INPS and 5% on the remaining taxable base)
  • Forfettario startup without INPS reduction: net profit ≈ R × 0.98 − €4,381.06
  • Forfettario from year 6 (15%, with INPS reduction): net profit ≈ R × 0.94 − €2,547.93

Breakeven = the value of R for which two formulas give the same net profit. Examples: startup with reduction vs cedolare 21% → 0.98R − 2,847.69 = 0.79R → R = €14,988 (rounded to 15,000). From year 6 vs cedolare 21% → 0.94R − 2,547.93 = 0.79R → R = €16,986 (~17,000).

When cedolare remains the right choice

  1. Below ~€15,000 annual revenue: INPS for the forfettario weighs disproportionately heavy
  2. If you don't want the formal obligations of P.IVA: electronic invoices (fattura elettronica), annual return, INPS, ATECO-code admin, possibly a monthly commercialista
  3. If you have a single property and plan to keep it that way: cedolare's simplicity can be worth more than the €1,000/year tax advantage
  4. If you don't meet the forfettario requirements: shareholdings in companies, employment income above the threshold, similar activity in the previous 3 years, revenue above €85,000

What if I have more than one property?

From 2026 the limit for staying under the private cedolare regime is 2 properties (Law 199/2025; confirmed by the April 2026 Agenzia delle Entrate guide: 21% on one unit chosen in the tax return, 26% on the second). From the third property you must switch to a business-tax regime with P.IVA. At that point the choice is no longer "cedolare vs forfettario" but "which P.IVA regime to open": forfettario (if you qualify, revenue below €85,000), simplified, or ordinary.

For structured property managers (PM) with 5+ units, forfettario startup is almost always the best starting point, as long as you stay under the €85,000 threshold. Above that, you move to simplified (deduction of actual costs, VAT applied with input VAT recovery on purchases). Deep dive: regime forfettario for short-term rentals.

How does Dott.House help you choose between forfettario and cedolare?

The numbers on this page are based on gross revenue. To decide well, you need the real net margin: after OTA commissions, non-deductible VAT, cleaning, linen, business expenses. Dott.House lets you set the tax regime per property and shows the post-tax margin automatically, so the cedolare vs P.IVA decision is grounded in your numbers, not a generic example. Deep dive: how to calculate the real margin on short-term rentals.

Frequently asked questions about forfettario vs cedolare for short-term rentals

Is it really true that P.IVA is worth it even with a single property?
Yes — if you bring in more than about €15,000 gross per year on that property and meet the requirements for the forfettario startup regime with the 35% INPS reduction. At €20,000 revenue, for example, the startup forfettario leaves you €16,752 net vs €15,800 for cedolare 21%: a gap of about €950/year in favor of P.IVA. The gap widens as revenue grows.
What's the exact threshold above which forfettario beats cedolare?
It depends on your INPS situation. (1) Forfettario startup with 35% INPS reduction (5% rate): beats cedolare 21% above ~€15,000 annual revenue. (2) Forfettario startup without INPS reduction (5% rate): beats cedolare 21% above ~€23,100. (3) Forfettario from year 6 onward (15% rate, with INPS reduction): beats cedolare 21% above ~€17,000. Versus cedolare 26% (second property), forfettario wins above ~€11,900 with the INPS reduction, above ~€18,300 without.
Why might forfettario be more advantageous than cedolare?
Three reasons. (1) Reduced rate: 5% for the first 5 years as a startup, 15% afterwards, vs 21-26% for cedolare. (2) Reduced taxable base: only 40% of revenue (the profitability coefficient for short-term rentals) is taxable, vs 100% under cedolare. (3) INPS deductibility: social-security contributions (~€3,000-4,500/year) further lower the taxable base. Downside: you pay INPS which cedolare does not require, and you must hold a P.IVA with its formal obligations.
Who qualifies for the 35% reduction on INPS contributions?
The 35% reduction is reserved for artisans and merchants enrolled in the IVS Fund (Inps Artigiani e Commercianti) who adopt the regime forfettario. It's not automatic: you must explicitly request it from INPS with the dedicated form. For short-term rentals run as a business activity (PMs or hosts with multiple units) it's generally applicable, but the commercialista must verify your specific case (selected ATECO code, business structure).
When does cedolare remain the best choice?
Four typical cases. (1) Below €15,000 annual revenue: forfettario INPS weighs disproportionately heavy. (2) If you don't want the formal P.IVA obligations (electronic invoices, annual return, INPS, possibly a monthly commercialista). (3) If you have a single property and plan to keep it that way (simplicity). (4) If you don't qualify for the forfettario (e.g. shareholdings, employment income above the threshold, similar activity carried out in the past).
What changes if I have multiple properties?
From 2026 the limit for staying under the private cedolare regime is 2 properties (Law 199/2025, confirmed by the April 2026 Agenzia delle Entrate guide). From the third property you must switch to a business-tax regime with P.IVA. At that point the choice is no longer 'cedolare vs forfettario' but 'which P.IVA regime to open': forfettario (if you qualify, revenue below €85,000), simplified, ordinary. For structured property managers with 5+ units, forfettario startup is almost always the best starting point.
Can I switch from cedolare to forfettario mid-year?
For rents already collected under cedolare in the current year there is no going back: the choice applies per tax year. You can, however, open a P.IVA at any time — the forfettario applies immediately to the new business activity — and in practice the switch is planned from January so the year isn't split across two regimes. Importantly, opening a P.IVA has consequences on other income and your overall situation, so plan it with your commercialista — don't improvise in December.
Are the numbers on this page reliable?
The calculations are based on 2026 rates: cedolare 21%/26%, forfettario 5%/15%, 40% profitability coefficient for hospitality activity (hosts/holiday homes; for a PM managing third-party units the coefficient is 86% and these numbers do not apply), INPS Gestione Commercianti at about €4,611.64/year per INPS Circular 14/2026 (with 35% reduction about €2,997.57). These are illustrative values to orient yourself, not a substitute for a personalized calculation from your commercialista. Rates and thresholds change: always verify the current situation before making tax decisions.

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Disclaimer: the calculations and thresholds in this guide are for informational purposes and are based on 2026 Italian regulation (cedolare 21%/26%, forfettario 5%/15%, 40% profitability coefficient for hospitality activity, INPS Gestione Commercianti per Circ. 14/2026). Rates, thresholds, and requirements may change. Choosing a tax regime has consequences beyond the pure tax calculation: always consult a qualified commercialista. Dott.House provides calculation tools but does not replace tax advice.

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