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Obligation to file an Italian Tax Return

Do you own a home in Italy that you rent out for short periods through Airbnb, Booking.com, or other rental platforms or agencies?

Certificazione Unica
Certificazione Unica
If so, you probably know that these platforms are required to apply a 21% withholding tax on your rental income. These platforms must also issue a Certificazione Unica (a yearly certification) to the CIN owner, with a copy sent to the Italian Revenue Agency (Agenzia delle Entrate) detailing the rental income collected and the tax withheld. 

However, are you aware that you are also required to file an Italian tax return the following year? 
Surprisingly, many foreign property owners don't know this.

Even if the platform has already withheld the tax due under the cedolare secca (flat-rate tax) regime, filing the tax return remains mandatory. The return is where you confirm your election of the flat-rate regime and settle any balance with the tax authorities. Failure to file is subject to penalties, even if no tax is due.
PF2026
Italian Tax Return form 2026
Under the current rules (revised by Legislative Decree No. 87/2024, effective September 1, 2024), failing to file a return with no tax due results in a fixed penalty of 250 to 1.000 Euro. The good news: you can regularize your position voluntarily, which significantly reduces the penalty. If you file the late return before any tax audit begins, the return is still technically considered "omitted," but the penalty drops to between 150 and 500 Euro if no tax was due. If you file within 90 days of the deadline, the reduced penalty can be as little as roughly 20 Euro.
The deadline for your tax return is 30. October.

TIP: Check if you received your CU2026 (Certificazione Unica) from each rental platform. If you didn't, the withheld tax may not have been paid, and you may still be held responsible for paying it. You can obtain personal credentials to check the received CU directly on the website of Agenzia delle Entrate.

Contact us to file your tax return or to regularize your tax filing position.

How to pay IMU and TARI in Italy?

1. What Are IMU and TARI?


IMU (Imposta Municipale Unica)

  • What is IMU: A municipal tax on property ownership in Italy.
  • Who pays it: Non-residents who own a second home or holiday home in Italy must pay IMU. Primary residences are generally exempt from IMU (under certain conditions).
  • When to pay: Typically in two installments, on June 16 and December 16.

TARI (TAssa sui RIfiuti)

  • What is TARI: A waste disposal tax that funds local waste collection and disposal services.
  • Who pays it: All property owners, regardless of residency.
  • When to pay: Deadlines vary by municipality, but payments are usually due in 2-4 installments per year.

2. How are IMU and TARI calculated?


Calculating IMU

As a second home owner, you are supposed to calculate IMU yourself, based on the cadastral value of your property. Here’s how to do it:

  1. Find the cadastral value of your property, which is listed in your Building Registry Registration (visura catastale).
  2. Calculate the cadastral value: multiply the cadastral income by 1,05 and then multiply the result also by the coefficient which is applicable at the time of calculation. Currently, in 2026 the coeficients are 160 for homes (categories A, exceptA/10) and connected buildings (categories C/2, C/6, C/7), 80 for offices (category A/10) and 65 for pools (category D/6), 55 for shops (C/1).
  3. Apply the IMU rate set by your municipality (typically 0.4% to 1.06% for second homes).
  4. Divide by 2 to get the amount due for each installment. Divide by quote of property of each co-owner.

Example:

  • Cadastral income: €685.00
  • Cadastral value: €685.00 × 1.05 x 160 = €115,080
  • IMU rate: 1.06%
  • Annual IMU: €105,000 × 0.0106 = €1,219.85
  • Each installment: €1,219.85 / 2 = €620
  • If you co-own the property 50% with your partner, each of the co-owners will have to pay €310 twice a year.

Calculating TARI

TARI is calculated based on:

  • The size of your property (in square meters).
  • The number of occupants in your family unit.
  • The municipal rate (varies by city/municipality).

Unlike IMU, most municipalities calculate the TARI for each property and send a payment invitation with the option for installed payments to the property owner.

It is essential that you submit a correctly filled in TARI registration for to your Comune, preferably within 90 days after purchase of the property, and at least before 30 June the year after the purchase.

3. How to Pay IMU and TARI as a Non-Resident?


Paying IMU

  1. Check the deadlines: IMU is typically due on June 16 and December 16.
  2. Use the F24 form: This is the standard form for paying taxes in Italy. You can fill it out online or at a bank.
  3. Payment methods:
    • Online banking with your Italian bank account (if your bank supports Italian tax payments).
    • Post office in Italy.
    • Authorized tax advisors can handle payments for you.

Paying TARI

  1. Wait for the bill: Most municipalities send TARI bills by mail to your property address.
  2. Pay online or in person:
    • Use the PAYMENT SLIP (bollettino) included with the bill.
    • Pay via online banking or at a post office in Italy.
  3. Set up automatic payments: Some municipalities allow you to pay TARI in installments via direct debit.

4. Common Mistakes to Avoid

  1. Missing deadlines: Late payments can result in fines and interest.
  2. Incorrect calculations: Double-check the cadastral value and municipal rates.
  3. Not updating your contact details: Ensure the municipality has your correct address to receive bills.
  4. Ignoring local variations: IMU and TARI rates vary by municipality—always check with your local town hall (comune).

5. How KeyPro Italy Can Help

Navigating IMU and TARI can be complex, especially from abroad. At KeyPro Italy, we offer:

  • IMU and TARI calculations tailored to your property.
  • Automated payment setup so you never miss a deadline.
  • Dedicated support in English, Italian, Dutch, German and French.

With our Second Home Italy Starter Pack, we handle all the bureaucracy for you, so you can enjoy your Italian property without the stress.

6. Frequently Asked Questions

Q: Do I need to pay IMU if my property is empty?

A: Yes, IMU is based on ownership, not occupancy. Even if your property is empty, you must pay IMU (unless it’s your primary residence and qualifies for an exemption).

Q: Can I pay IMU and TARI online from abroad?

A: Yes, but you’ll need an Italian bank account or a service like KeyPro Italy to handle payments for you. Some international banks also support SEPA transfers to Italian tax accounts.

Q: What happens if I don’t pay IMU or TARI?

A: You may incur fines, interest, or legal action from the municipality. It’s best to stay compliant to avoid complications.

Q: How do I know if my property qualifies for IMU exemptions?

A: Primary residences are generally exempt from IMU, but second homes and rental properties are not. Check with your local comune or a tax advisor for specifics.

Final Tips

  • Keep records: Save all payment receipts and tax documents.
  • Set reminders: Mark the deadlines (June 16 and December 16 for IMU) on your calendar.
  • Ask for help: If you’re unsure, consult a tax advisor or service like KeyPro Italy to avoid mistakes.

Ready to Simplify Your Tax Payments in Italy?

Contact KeyPro Italy today to learn how we can handle IMU, TARI, and other administrative tasks for your Italian property!

New rules for private rentals in Italy in 2026

private rentals in Italy
The 2026 Italian Budget Law introduced a significant change in short-term rental regulations, directly affecting anyone who rents out their properties privately for periods of less than 30 days.
The maximum number of properties that may be used for short-term rentals without being considered a business activity has been reduced. The short-term rental tax scheme applies to a maximum of two properties per tax year, with a flat rate of 21% for the first property and a flat rate of 26% for the second. From the third property onward, the owner is deemed to be conducting a business activity, in accordance with Article 2082 of the Civil Code, with the resulting obligation to register for VAT and apply the rules for business activities. The presumption of a business activity applies regardless of the duration of the contracts, the rental channel used, and whether the activity is carried out independently or through intermediaries.
The amendment lowers the threshold from 4 to 2 properties and has direct consequences for landlords' tax and administrative obligations. This makes it absolutely essential to carefully evaluate your own situation and adapt to the new rules as quickly as possible.

New rules for private rentals in Italy in 2026

  • Maximum of 2 residential units
  • One residential unit taxable at 21%
  • Second residential unit taxable at 26%
  • Three or more residential units = business activity with VAT number

One of the objectives of the new tax scheme is to increase the supply of long-term rental properties. It is expected that some owners with just three or little more rental properties will offer their surplus properties for long-term rental. Others may choose to put their surplus apartments up for sale, which will likely create opportunities for new investors in the short-term rental market.