Draft rules on rentals of 3 or more houses

Under a new draft tourism law, steps are being taken to ensure that individuals who rent more than 3 houses are considered to be carrying on a business activity. This means that income from the activity will not qualify for the favourable “cedolare secca” treatment and that the individuals carrying on these rentals will need to register for IVA (take out a partita iva) and INPS. The thinking behind the proposed move is to regulate better the tourist rental sector, particularly in view of the number of activities which are believed to be carried on through sites such as Airbnb, but which in reality are businesses. The draft law also provides for Comuni to regulate tourist rentals by issuing licences to regulate the maximum number of rental properties available and the maximum duration of temporary rentals so as to be able to manage better the flow of tourists to Italy’s historic centres. We will need to see what happens to the draft proposals.