Italy: 1-2 properties can still be taxed as a business
A Florence tax court treated the 3-property business presumption as a floor, not a ceiling. High booking volume, years of continuity, platform presence, and a rental-only income stream can reclassify a 1-2 unit host as a business, stripping cedolare secca for IRPEF, IVA, and social contributions.
Regulation Radar
A Florence tax court has ruled that short-term rental income can be reclassified as business income even below the statutory three-property threshold. The ruling, sentenza 148/2026 from the Corte di Giustizia Tributaria (CGT) of Florence, was handed down on 2 March 2026. It means a host running just one or two units can still lose the flat cedolare secca tax and face IRPEF, IVA, and social contributions where the activity shows the substance of a business, not a casual rental. The decision was reported by Fisco Oggi, the official publication of the Italian tax authority.
Caught by the Regulation Radar
Italysweeping 36 marketssources checked 2 days ago
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