Taxation of Holiday Homes 2026 in North Sardinia
In 2026 anyone renting out for short periods as a private individual can choose the cedolare secca (Italy's flat-rate tax on rental income): 21% on the rent of one property only, of your choice, and 26% on the others, calculated on gross takings. From the third apartment let short-term, the activity is instead considered by law a business. Choosing the wrong regime can mean paying thousands of euros more every year. This guide gives you a clear picture of the options — without replacing your accountant, but letting you go to them with the right questions.
Over 300 homes managed since 2011 in northern Sardinia
Every day we work with owners who want the most from their home — without wasting time and without surprises.
Important note: this guide is for information only and does not constitute tax advice. The rules on short lets are constantly evolving. Before making tax decisions, always consult an accountant (commercialista) up to date with the 2026 rules.
Tax Regimes for Short Lets in 2026
Anyone renting out a holiday home in Italy can choose between three main regimes:
| Regime |
Rate |
Suitable for |
| Cedolare secca (flat-rate tax) |
21% on one property of your choice / 26% on the others |
Those with 1-2 properties let short-term |
| Ordinary regime (IRPEF, personal income tax) |
Progressive rates 23%→43% |
Those with many deductions or low total income |
| Business regime |
Varies (VAT + IRES, corporate income tax / IRPEF) |
Those who rent out 3 or more apartments (from 2026 it is a business by law) |
Cedolare secca: how it works in 2026
The most widely used regime for holiday homes
The cedolare secca is a substitute tax for IRPEF that simplifies the calculation and often reduces the tax burden compared with the ordinary regime.
What the cedolare secca includes
- It replaces IRPEF, regional and municipal surcharges
- No registration tax or stamp duty to pay on the contracts
- No ISTAT (national statistics institute) revaluation of the rent during the contract
2026 rates (2024 Budget Law, not changed by the 2026 Budget Law)
- 21% — on the rent of a single property, which you choose in your tax return
- 26% — on the other short-let properties (from 2026 a maximum of two apartments in total: from the third it is a business)
Note: the 26% rate also applies to the second apartment in the same building (e.g. a two-room flat + a studio in the same building), not only to properties in different cities.
Anyone managing several properties can choose which one to put under the reduced 21% rate — as a rule it is best to apply it to the property that generates the highest income.
Incremental flat tax
It does not concern short lets by private individuals
The incremental flat tax taxed at 15% the increase in income compared with the previous three years, but it was provided for 2023 only and only for business or self-employment income with a partita IVA (VAT number). It therefore does not apply to short-let rent collected by private individuals, even if income changes a lot from one year to the next.
If you rent as a private individual, the real choice is between two regimes: cedolare secca or ordinary IRPEF.
Ordinary regime (IRPEF, personal income tax)
The ordinary regime may be better in specific scenarios:
- Very low total income (first IRPEF brackets at 23%)
- Deductions to recover (e.g. renovation bonus), which require a fairly high IRPEF: actual expenses are not deducted from the rent, which is taxed with a flat-rate reduction of 5%
- Jointly owned property with complex income situations
In general, for most Sardinian owners with employment or pension income, the cedolare secca (21% or 26%) turns out to be more advantageous than the ordinary regime.
DAC7 — The Novelty That Changes Everything
In force since 2023 — direct impact on Airbnb and Booking.com
The European DAC7 directive (transposed in Italy by Legislative Decree 32/2023) obliges digital platforms such as Airbnb, Booking.com and Vrbo to report to the Agenzia delle Entrate (Italian tax authority) every year, by 31 January, the details of those who rent through them: takings per quarter, days rented, commissions and the address of each property.
What it means in practice
- The Agenzia delle Entrate already knows how much you have earned on the OTAs
- Not declaring short-let income has become much riskier
- For rentals there is no minimum threshold: all hosts are reported, even with a single booking
DAC7 is the main reason why anyone managing holiday homes in Sardinia must be fully compliant with the tax return on rental income. From 20 May 2026, moreover, under EU Regulation 2024/1028 the portals must remove listings without a valid CIN.
Tourist tax in Sardinia 2026
The tourist tax is municipal: it is applied only by the Comuni (municipalities) that have introduced it, with rates, periods and exemptions set by their own regulation. It is collected from the guest by the owner or manager, who pays it to the Comune. It is not income of the owner, but the owner is responsible for payment; if the portal collects the rent, the portal is also liable.
| Comune |
Indicative amount |
Period of application |
| Alghero |
Varies by category |
All year |
| Olbia |
Varies by category |
All year |
| Palau |
Varies by category |
Summer season |
| Santa Teresa di Gallura |
Varies by category |
Summer season |
| San Teodoro |
Varies by category |
Summer season |
The periods shown in the table are only indicative: always check your Comune's updated regulation and resolutions, because amounts and periods change often. Not giving fixed figures here is a deliberate choice: a wrong amount would cost you penalties.
Withholding tax on OTAs (Airbnb, Booking.com)
When the portal collects the guest's payment (Airbnb always, Booking.com only with certain payment methods), it withholds 21% on all rents, whether or not you have chosen the cedolare secca. In practice:
- The portal withholds 21% of the gross rent, pays it to the tax authorities and by 16 March issues you the Certificazione Unica (CU, the annual tax certificate)
- Since 2024 it is always an advance: the rent must be declared and the withholding is deducted from the taxes due (if your rate is 26%, you pay the difference)
- It is not an additional cost — it is a tax advance already paid
If instead the guest pays you directly, there is no withholding: you declare and pay everything yourself.
Summary: which regime when
| Situation |
Generally the most advantageous regime |
| 1 property, medium-high employment income |
Cedolare secca 21% |
| 2+ properties, medium-high income |
Cedolare secca (21% on the first, 26% on the others) |
| Very low total income |
Assess the ordinary regime with the accountant (commercialista) |
| 3 or more short-let apartments |
A business by law from 2026: partita IVA (VAT number) and SCIA (notice of commencement of business) at the Comune |
| Year with a sharp increase in income |
No special regime for private individuals: cedolare or IRPEF |
Why rely on AffittaSardegna
- Since 2011 — professional management in northern Sardinia
- 300+ homes managed directly in northern Sardinia since 2011
- Full management — bookings, cleaning, check-in/out, maintenance
- Maximising your income — dynamic prices and an optimised calendar
👉 Managing on your own is fine. Managing better is worth more.
→ See how AffittaSardegna management works
The real difference
Two identical homes can produce completely different results.
- Improvised management → high taxes + empty calendar
- Structured management → tax optimisation + high occupancy
The key point
Taxation is only one part.
The real gain lies in complete management:
- Dynamic pricing
- High occupancy
- Correct distribution
- Tax optimisation
FAQ
What is the cedolare secca rate for short lets in 2026?
In 2026 the cedolare secca on short lets is 21% on the rent of one property only, chosen by you in your tax return, and 26% on the others. The rates were introduced by the 2024 Budget Law and the 2026 Budget Law did not change them; before 2024 it was 21% for everything. It is paid on gross takings, portal commissions included.
Does Airbnb income have to be declared in Italy?
Yes, always. Since 2023, under the DAC7 directive, platforms such as Airbnb report to the Agenzia delle Entrate every year how much you have collected and which properties you have rented out, with no minimum thresholds for rentals. The 21% withholding taken by the portal is also only an advance: the rent must be declared anyway. Not declaring it exposes you to tax assessments and penalties.
How many properties can you rent short-term before being considered an entrepreneur?
From 2026 the limit is set by law (Law 199/2025): as a private individual you can rent out at most two apartments for short periods in the same year. From the third, the activity is presumed to be a business: you need a partita IVA and a SCIA at the Comune, and you can no longer use the cedolare secca. You can be a business even with one or two homes, if you offer hotel-type services in an organised way. In the case of joint ownership or inherited properties the counting has not yet been clarified: check with your accountant.
Disclaimer: this guide is for purely informational purposes and does not constitute tax or legal advice. The information is general in nature and up to date as of October 2026: for your specific situation, check with your accountant.
Own a home in northern Sardinia you'd like to earn from?
We'll manage it for you, as we have done since 2011: bookings, guests, support. You collect the income, we take care of the rest.
Request a free valuation →
