Cedolare secca for short-term rentals 2026: 21% or 26%?
Cedolare (Italy's flat-rate rental tax) is 21% on the first property and 26% on the second. From the third property onward the owner must register for VAT (P.IVA) and switch to a business-tax regime: cedolare no longer applies. It sounds simple, but for a property manager (PM) handling other people's units the consequences are more nuanced. Cedolare affects the net amount the owner receives in their statement, and it changes the relative profitability of different properties in a portfolio. In this guide you'll find the 2026 rates, worked examples, and what changes for the manager.
Who pays the cedolare?
The cedolare is paid by the private owner. It applies to the gross revenue the owner collects from the short-term rental.
The property manager does not pay the cedolare. The PM operates under a business-tax regime (regime forfettario, simplified, or ordinary) and pays tax on the business margin.
Why it still matters to the PM: the cedolare reduces the net amount paid to the owner in statements, and it changes the relative attractiveness of different properties in a portfolio (e.g. a property under cedolare 21% vs cedolare 26% vs business-tax regime from the third property onward).
Cedolare secca rates for 2026: summary
| Number of properties (per owner) | Rate | When it applies |
|---|---|---|
| 1 property | 21% | On the property's annual gross revenue |
| 2 properties (the "first") | 21% | The property designated as "first" in the tax return |
| 2 properties (the second) | 26% | The other property |
| 3 or more properties | Business-tax regime | VAT registration (P.IVA) mandatory. Choice between regime forfettario, simplified, or ordinary. Cedolare no longer applies. |
Legal references: art. 4, par. 2 of D.L. 50/2017 (the 21% cedolare for short-term rentals); the 2024 Legge di Bilancio (Italian Budget Law) for the 26% rate and the threshold above which the business-tax regime is mandatory. To confirm the rate for the current tax year, check with a commercialista (Italian accountant) or the Agenzia delle Entrate (Italian Revenue Agency) website.
Cedolare is not always the best choice (even with a single property)
Above roughly €15,000 in annual gross revenue, the regime forfettario startup variant with the 35% INPS social-security reduction leaves more net profit than cedolare 21%, even with a single property. At €20,000 in gross revenue the gap is about €960/year in favor of the P.IVA forfettario route.
See the comparison table and breakeven thresholds for each scenario: Forfettario vs cedolare: 2026 tax comparison →
Worked examples: calculating the cedolare
Example 1: owner with 1 property
Private owner, first (and only) property in short-term rental, annual gross revenue €11,520.
| Annual gross revenue | €11,520 |
| Cedolare rate | 21% |
| Cedolare owed by the owner | €2,419 |
Cedolare is calculated on the gross. Operating costs (cleaning, utilities, OTA commissions) do not reduce the taxable base under cedolare.
Example 2: owner with 2 properties (mixed cedolare 21% + 26%)
Optimal strategy: apply the 21% rate to the higher-revenue property.
| Property | Gross revenue | Rate | Cedolare |
|---|---|---|---|
| Property A ("first") | €32,000 | 21% | €6,720 |
| Property B | €22,000 | 26% | €5,720 |
| Total | €54,000 | 23.0% avg. | €12,440 |
Had Property B (€22,000) been designated as the "first," total cedolare would have risen to €12,940 — €500 more. Choosing the "first" property well is real money.
Example 3: owner with 3 or more properties — switch to a business-tax regime
From the third property onward, cedolare no longer applies to any property in the portfolio. The main options:
| Regime | Characteristics |
|---|---|
| Regime forfettario (15%) | Revenue up to €85,000. Profitability coefficient of 40% for short-term rentals (taxable income = 40% of revenue). 15% rate, or 5% for new businesses in the first 5 years. No deduction of actual costs. |
| Simplified | Revenue up to €500,000. Ordinary Italian IRPEF income tax (23-43% brackets). Deduction of actual costs. VAT handled per Italian rules (verify with your commercialista based on the type of service). |
| Ordinary | For corporations (SRL, SpA). IRES at 24% and IRAP around 3.9%. Full balance sheet, ordinary bookkeeping. |
The choice between regimes depends on many factors (revenue volume, cost structure, growth outlook). Always discuss with a commercialista.
What changes for the property manager
Even though the PM doesn't pay the cedolare, there are three good reasons to understand it well:
1. Transparency in owner statements
A private owner wants to know how much they actually pocket after tax. A statement that shows only pre-tax margin leaves them guessing. A clear statement that also shows the accrued cedolare (separately) gives them full visibility. Deep dive: how to build the owner statement.
2. Monitoring the 2-property threshold
If an owner is approaching 2 properties, the third one changes everything: P.IVA registration, choice of regime, VAT handling. A PM who tracks this with the owner avoids surprises and keeps trust intact.
3. Strategic comparison across properties
For the owner, two properties with the same gross revenue can deliver very different nets if one is under cedolare 21%, another under cedolare 26%, or one is in a business-tax regime. A PM who understands these dynamics helps the owner decide which property to refurbish, divest, or add.
How Dott.House handles the cedolare
In Dott.House you configure each property's tax regime for its owner (cedolare 21%, 26%, business-tax regime). The system automatically computes the accrued cedolare month by month and shows it in owner statements, separate from operating margin. Related deep dives: margin calculation for the PM, complete guide to 2026 Italian tax regimes.
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