{"id":2645,"date":"2019-12-16T11:47:35","date_gmt":"2019-12-16T10:47:35","guid":{"rendered":"http:\/\/www.namarealestate.it\/?p=2645"},"modified":"2023-06-23T19:46:10","modified_gmt":"2023-06-23T17:46:10","slug":"renting-out-a-house-in-italy-how-does-it-work","status":"publish","type":"post","link":"https:\/\/www.namarealestate.it\/en\/renting-out-a-house-in-italy-how-does-it-work\/","title":{"rendered":"Renting out a house in Italy: how does it work?"},"content":{"rendered":"\n

However, there are some aspects that may “slow down<\/em>” the race to buy in the “Bel Paese”. In the meantime, I would like to start by giving you a figure:<\/p>\n\n\n\n

When we are contacted by a potential buyer interested in buying a second home, we obviously conduct an interview with the customer, aimed at knowing in detail all their needs,<\/strong> in order to be able to submit the most suitable solutions for his research.<\/p>\n\n\n\n

One of the questions we ask potential customers is:<\/p>\n\n\n\n

“Are your buying your second home for purely private use, or to turn it into an extra income?”<\/strong><\/h3>\n\n\n\n

The answers we receive, in 80% of cases, are:<\/p>\n\n\n\n

-“I would also like to rent it out to tourists, but where do I start from? \u201c<\/em>
-“How does it work in Italy?  What is the legislation?”<\/em>
-“How much does the tourism rental make?”<\/em>
-“For obvious reasons of distance, I can not deal with the management.<\/em>
Who would take care of it? “<\/em><\/p>\n\n\n\n

In fact, there are those who abandon their dream of owning a property in Italy, in order not to “bear” the expenses that would be incurred to maintain a second home in a foreign country.<\/p>\n\n\n\n

All this happens for all of these reasons:<\/p>\n\n\n\n

– The bureaucratic aspect is not known;
– Same for the fiscal aspect of renting a second home;
– Logistical reasons, i.e. I live far away from my second home.<\/em> (located in a foreign country).<\/p>\n\n\n\n

Don’t worry: with this article I will try to provide you all the elements needed to be able to perform this important step… and to realize your dream of owning a “little piece of Italy”.<\/p>\n\n\n\n

Rules for renting out a house in Italy to tourists:<\/h2>\n\n\n\n

Well, let’s start by understanding what is meant by Short Leases for the Italian Law. “Are considered short leases..<\/em> – I quote Art. 4 of Legislative Decree 50\/2017 – ..Lease contracts for residential buildings of a duration not exceeding 30 days, including those that provide for the provision of services for the supply of linen and cleaning of premises, entered into by individuals outside the exercise of business activities .<\/em>…. \u201c<\/p>\n\n\n\n

…ok, I’ll try to simplify things for you to better understand:<\/p>\n\n\n\n

– You can only rent properties that have an ABITATIVE intended use ,. You can check the destination of use of a property by verifying the Cadastral Category, requesting a <\/em>Cadastral Inspection.<\/em><\/p>\n\n\n\n

If you are buying a property here are the documents to recover before signing a proposal<\/span>.<\/a><\/p>\n\n\n\n

–  To be considered as a “short lease”, the maximum duration of the rental must not exceed 30 days<\/strong>.<\/em><\/p>\n\n\n\n

If the rent is more than 30 days, it is obligatory by law to register the contract with the Revenue Agency with the consequent registration fees.<\/p>\n\n\n\n

–  Each person can rent no more than 3 properties, otherwise the Revenue Agency will consider this as a real business activity, with the obligation to apply for a VAT number<\/strong>.<\/em><\/p>\n\n\n\n

Renting out a house in Italy – procedure:<\/h2>\n\n\n\n

Step 1 – you have to communicate to the municipality where the house is located that you want to rent it to tourists.<\/em><\/p>\n\n\n\n

Once your application has been accepted, the municipality will provide you an identification code… Keep it!<\/p>\n\n\n\n

Step 2 – The identification code must be provided in any<\/strong> online ad.<\/em><\/p>\n\n\n\n

This way, the Revenue Agency will be able to verify the type of structure, the features of the property and the owner.<\/p>\n\n\n\n

Step 3 – You will have to make sure that each guest has his or her ID or passport, and you have to send all these data to the Police Headquarters of the province where the house is located.<\/em><\/p>\n\n\n\n

Beware of timing!<\/strong>
You have from  6 to 24 hours from the arrival of your guests (depending on how many nights they will stay at home!)<\/p>\n\n\n\n

Step 4 – You must<\/strong> inform ISTAT (National Statistical Office) of the “flow” of your guests for statistical purposes;<\/em><\/p>\n\n\n\n

Renting out a house in Italy – how much can I earn in % per year?<\/h2>\n\n\n\n

It obviously depends on some factors, including:<\/p>\n\n\n\n

1 – Geographical area <\/strong>
In large cities, the flow of tourists is constant throughout the year but the offer is wide. The touristic flow, in seaside and mountain resorts, is strictly linked to the season.<\/p>\n\n\n\n

In all cases, an old (but gold) rule always applies – “Location, Location, Location!<\/em>“.<\/p>\n\n\n\n

2 – Marketing investment you make in your home<\/strong>.<\/p>\n\n\n\n

D.I.Y. or… specialized agency?<\/h2>\n\n\n\n

The choice is yours.<\/em><\/p>\n\n\n\n

When I say “marketing investment” I mean not only the promotional aspect (advertising on specialized sites, etc..), but also a series of actions aimed at making the potential guest perceive an added value of your property, when compared to all others in the market.<\/p>\n\n\n\n

To give you an idea of the result, however, it is useful that you know about the costs of maintaining a property in Italy. The topic is discussed in this article<\/a>.<\/span><\/p>\n\n\n\n

You should take in consideration the idea of  applying for a mortgage from an Italian bank, that you would pay back with the incomes you would get from renting out a house in Italy.<\/p>\n\n\n\n

Doing this kind of financial analysis could be your ” winning ace” .
Here’s how to apply for a loan in Italy!<\/a><\/span><\/p>\n\n\n\n

In any case, here is the average gross annual yield (from which expenses and taxes must be deducted) of a property in Italy:<\/p>\n\n\n\n

– For seaside resorts, from a minimum of 3% to a maximum of 7%<\/p>\n\n\n\n

– For large cities, from a minimum of 4% to a maximum of 8%.<\/p>\n\n\n\n

Renting out a house in Italy – cost of rental taxes:<\/h2>\n\n\n\n

In terms of taxation, if you own a house that you want to put on the rental market, you have 2 possibilities:<\/p>\n\n\n\n

1 – The Irpef tax (income tax) that does not have a fixed percentage. The higher the earnings, the more taxes you will pay.<\/p>\n\n\n\n

Basically you have to add up all your annual earnings and annuities and, depending on the amount reached, you will be taxed with a certain percentage.<\/p>\n\n\n\n

2 – You can opt for the “cedolare secca<\/em>“,  this form is cheaper if you don’t have many expenses to deduct.<\/p>\n\n\n\n

The rate is 21%<\/strong> for short term rentals,  calculated on 100% of the amount.<\/p>\n\n\n\n

Here are some recommendations:<\/strong><\/p>\n\n\n\n

Make an insurance that covers you from any kind of damage to property or persons, and that covers any accidents to guests who will spend their holidays in your home (this also must include any outside garden, swimming pool,<\/strong> etc. ..)<\/p>\n\n\n\n

The property must comply with the building and town planning regulations<\/strong> and be certified as being fit for use by the municipality where your property is located. As in the previous case, in case of any damage suffered by your guests in case of irregularity of the property, the insurance will not compensate for the damage<\/strong>.<\/p>\n\n\n\n

The property must be equipped with certification of technological systems<\/strong> up do date, otherwise, in case of accidents to guests, the insurance will not compensate for the damage caused.<\/p>\n\n\n\n

I advise you to always ask for an advance payment of the rent, before the guest to whom you give the keys enters and to ask for a security deposit that can cover you from any damage that may have been caused to the property.<\/p>\n\n\n\n

Do you like our content?
Shop now our book “Buy a house in Italy<\/em>“.<\/h3>\n\n\n\n

It’s available on Amazon<\/span> >>> https:\/\/www.amazon\/<\/strong><\/span>buy a house in Italy.com<\/span><\/span><\/span><\/a><\/h3>\n\n\n
\n
\"Buy<\/a>
All you need to know before starting to look for a house in Italy<\/figcaption><\/figure>\n<\/div>","protected":false},"excerpt":{"rendered":"

However, there are some aspects that may “slow down” the race to buy in the “Bel Paese”. In the meantime, I would like to start by giving you a figure: When we are contacted by a potential buyer interested in buying a second home, we obviously conduct an interview with the customer, aimed at knowing […]<\/p>\n","protected":false},"author":5,"featured_media":2741,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[112,109,110,111,108,107,95,102,103,105,93,94,90,125,129,128,126,127,104,69,87,91,101,92,98,100,106,86,96,89],"class_list":["post-2645","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-how-to-buy-a-house-in-italy","tag-agriturismo-in-italy","tag-agriturismo-tuscany","tag-bb-in-tuscany","tag-bed-and-breakfast-in-italy","tag-bed-and-breakfast-in-tuscany","tag-buy-a-farmhouse-in-italy","tag-buy-a-house-in-italy","tag-buy-a-property-in-italy","tag-buy-a-property-in-tuscany","tag-buy-a-propertyin-tuscany","tag-buy-house-in-tuscany","tag-buy-house-tuscany","tag-buying-an-house-in-tuscany","tag-buying-property-in-italy","tag-buying-property-in-italy-as-a-foreigner","tag-buying-property-in-lake-como","tag-buying-property-in-milan","tag-buying-property-in-rome","tag-estate-agent-tuscany","tag-house-in-tuscany","tag-house-on-sale-in-tuscany","tag-how-to-buy-an-house-in-tuscany","tag-italy-for-foreign","tag-things-to-now-if-you-buy-a-house-in-tuscany","tag-tuscany","tag-tuscany-for-foreign","tag-villa-in-italy","tag-where-to-buy-a-house-in-tuscany","tag-where-to-buy-an-house-in-italy","tag-where-to-buy-an-house-in-tuscany"],"acf":[],"yoast_head":"\nRenting out a house in Italy: how does it work? 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