Many people who buy second homes in Italy, buy with the intention of renting it out in their absence. There is however a legal procedure to be followed:
1. By default, renting out a property in Italy means earning an income on Italian soil.
2. This means you are liable to pay Italian taxes on that income whether you are resident in Italy or not (and whether or not you pay your annual taxes elsewhere).
3. Taxes on rental income can be a flat 21% with no deductibles, or depending on how you set up your activity, they can vary.
4. Deposit of an annual tax return for the activity is required.
5. A rental activity must be registered with the local Comune (local municipality), local Questura (police) and the relevant regional offices. The registration for all three is a matter of paperwork; each office issues the rental property a username and password to access each online platform.
6. All guests should be registered at the Questura within 24 hours of arrival which can be done on line.
7. A visitor's tax is due to the Comune for each guest - a minimal amount but it helps to fill the local coffers – this can be collected by you and paid via bank transfer every trimester.
8. Specific insurance to cover rental guests/a rental activity is advisable. This is different to third party insurance.
9. All domestic help should be legally hired. There are ‘seasonal’ options which can cost approx. E.50-E.60 per month on top of the hourly rate paid.
If you rent out your property, it would be advisable to check the portals with whom you advertise and check out exactly what insurance coverage they provide to you and your guests with regard to cancellations or similar.
All of this information has been carefully sourced, but please double check its accuracy before taking any action.