Buying a property in Italy as an investment is only the first step.
Once the property has been purchased, one of the most important decisions is how it will be used.
Should you rent it to tourists for a few nights or weeks at a time? Would a long-term tenant provide a more stable solution? Or would a combination of personal use and short-term rental better suit your objectives?
There is no single answer.
A central apartment in Rome, a student property in Bologna, a farmhouse in Tuscany and a masseria in Puglia can require completely different rental strategies.
The right choice depends on the property, location, expected income, operating costs, level of management required and your own plans for the property.
For international owners, there is another important consideration:
Who will manage the property while you are abroad?
Italy Property Finders can continue assisting clients after the purchase, providing property management and coordinating both short-term and long-term rentals, depending on the property and the owner's objectives.
For Italian tax purposes, a locazione breve generally refers to a residential rental contract with a duration of no more than 30 days, entered into by individuals outside the exercise of a business activity.
This type of rental is commonly associated with holiday and tourist accommodation.
A property may be rented for a weekend, one week or several weeks and can potentially generate attractive gross income in locations with strong visitor demand.
Typical examples might include:
a central apartment in Rome or Florence; a holiday home in Venice; a villa in Tuscany; a property near Lake Como; or a masseria in Puglia.
But short-term rental requires considerably more active management than simply finding a tenant and collecting rent.
A long-term rental involves leasing the property for a longer period under one of the contractual arrangements permitted by Italian law.
Instead of continuously finding new guests, the owner rents the property to a tenant who uses it as their home for an agreed period.
This can be particularly suitable for properties in cities with strong year-round residential demand, employment centres, university cities and locations where tourism is not the property's primary attraction.
The gross monthly income may sometimes appear lower than the potential income from holiday rentals, but this does not necessarily mean that the investment performs worse.
Higher gross income does not automatically mean higher net return.
| Short-Term Rental | Long-Term Rental | |
|---|---|---|
| Income potential | Can be higher in strong tourist markets | Generally more predictable |
| Occupancy | Can fluctuate throughout the year | Greater continuity once rented |
| Seasonality | Can be significant | Usually less important |
| Management | High | Lower |
| Cleaning & guest turnover | Frequent | Limited |
| Utilities | Often paid by owner | Often borne partly or largely by tenant, depending on contract |
| Furnishing | Usually important | Depends on target tenant |
| Personal use | Greater flexibility | Limited during tenancy |
| Marketing | Continuous | Mainly when seeking a tenant |
| Income predictability | Lower | Generally higher |
| Suitability for owners abroad | Usually requires local management | Easier, but local representation remains useful |
This comparison is necessarily general. The actual financial result depends on the individual property, contract, location, taxation and management structure.
Short-term rental tends to be most interesting where there is a strong reason for visitors to stay in the location.
A well-located apartment in a major cultural destination may benefit from substantial visitor demand.
But location within the city can make an enormous difference.
An apartment within walking distance of major attractions and restaurants may operate in a completely different rental market from a property on the outskirts of the same city.
Accessibility, floor, lift, air conditioning, layout and quality of renovation can all influence guest demand.
A country property requires a different analysis.
A restored Tuscan farmhouse with a swimming pool, attractive views and sufficient bedrooms may appeal to families and groups seeking a countryside holiday.
The nightly or weekly rate may be substantial, but so can the operating costs.
Pool maintenance, gardens, land, heating, cleaning, linen, check-in, repairs and local assistance all need to be considered.
And seasonality may be much stronger than for a central city apartment.
Restored masserie, trulli and countryside villas can appeal strongly to the international holiday market, particularly in established destinations such as the Valle d'Itria.
Again, however, the financial analysis should consider the entire year rather than only the rates achievable during July and August.
A spectacular peak-season weekly rate tells you very little about annual net return unless you also understand occupancy throughout the rest of the year.
Lake Como, Lake Garda and selected coastal destinations can also offer interesting short-term rental opportunities.
But the same principle applies:
analyse the season, not simply the peak week.
Long-term rental can be particularly relevant where demand comes from people who actually need to live in the area.
This can include major cities such as Milan and Rome, university markets such as Bologna, Florence, Padua and Turin, and other areas with strong employment, education or residential demand.
In these markets, the property does not necessarily need to attract tourists.
Instead, investors should consider proximity to public transport, universities, offices and services, as well as the size, layout and condition of the apartment.
The objective is different:
reliable residential demand rather than visitor demand.
This is one of the easiest mistakes to make.
Imagine that a long-term tenant could pay €1,800 per month while the same property could potentially achieve €200 per night as a short-term rental.
At first sight:
€200 × 30 nights = €6,000
may make the short-term strategy look considerably more attractive.
But that is not a realistic comparison.
The property may not be occupied for 30 nights every month.
The owner may also need to pay for cleaning, linen, utilities, guest management, platform/intermediary costs, maintenance and professional property management.
The correct comparison is therefore:
Net Annual Short-Term Rental Income
versus
Net Annual Long-Term Rental Income
after taking the relevant costs, taxation and realistic occupancy into account.
For a short-term rental, one of the most important figures is realistic annual occupancy.
A property achieving €500 per night for a few peak weeks is not necessarily more profitable than one achieving a lower nightly rate but attracting guests throughout much of the year.
This is particularly important for countryside, lake and seaside properties.
When assessing a potential purchase, investors should ask:
Who will rent this property?
Why will they choose this location?
During which months?
At what realistic rate?
How many nights or weeks can reasonably be occupied?
Only then does the advertised nightly rate become meaningful.
Short-term rentals usually require considerably more operational activity.
Depending on the property and management arrangement, costs may include cleaning, linen, guest communication, check-in and check-out, utilities, Wi-Fi, routine maintenance, emergency assistance, gardening, pool maintenance, insurance and property management.
For larger villas and country estates, these costs can become substantial.
This is why gross rental revenue should never be confused with net return.
Long-term rental generally involves fewer turnovers and less daily management.
But it is not cost-free.
Owners still need to consider taxation, maintenance, insurance, condominium costs where applicable, property management and periods between tenants.
The contractual structure is also important, and the owner should obtain appropriate professional advice before entering into a tenancy.
For an international owner, having someone locally who can coordinate the property and deal with practical issues can be particularly valuable.
Tax treatment should always be reviewed according to the owner's individual circumstances with an Italian tax professional.
Under the rules currently applicable, income from qualifying short-term rental contracts may be subject to ordinary taxation or, where the conditions are satisfied, to the cedolare secca regime.
For short-term rentals subject to the substitute-tax regime, the rate is generally 26%, reduced to 21% for one property selected by the taxpayer.
There is another important distinction.
The specific non-business short-term-rental tax regime is recognised for no more than four apartments per tax period. Above that threshold, short-term rental activity is presumed to be carried out as a business for these purposes.
These rules can change and individual circumstances matter, so the tax treatment should be confirmed with a qualified Italian tax adviser before relying on projected net returns.
Owners considering tourist or short-term rental also need to understand the CIN – Codice Identificativo Nazionale.
The national CIN rules apply to residential units used for tourist rentals and short-term rentals.
The CIN must be obtained and displayed as required and included in advertisements. Existing regional or provincial identification requirements may also continue to apply.
The national CIN framework became effective on 2 November 2024, with sanctions applicable from 2 January 2025.
This is one of the reasons why short-term rental should not be approached simply as “putting the property online”.
There is an operational and regulatory framework that needs to be managed correctly.
Properties used for short-term or tourist rentals are also subject to specific safety requirements.
According to the Italian Ministry of Tourism's updated BDSR guidance, units used for short-term or tourist rentals must be equipped, where applicable, with functioning combustible-gas and carbon-monoxide detectors and legally compliant portable fire extinguishers, including where the activity is operated on a non-business basis. The Ministry specifies circumstances where gas detectors may not be required, such as properties without a gas installation and where the relevant risk can be excluded.
Business-operated rentals may be subject to additional safety requirements relating to installations.
Regional, municipal and property-specific requirements may also apply.
This is one of the strongest advantages of short-term rental for many international owners.
If you have purchased a villa in Tuscany because you want to spend several weeks there every year, a long-term tenant may not suit your lifestyle.
Short-term rental can provide greater flexibility.
You might reserve certain periods for yourself and make the property available during the remainder of the year.
But the financial calculation needs to reflect this.
If you reserve the most desirable summer weeks for your own family, those weeks cannot simultaneously be included in projected rental income.
This is particularly important when buying a home and an investment.
Owning a property in another country creates practical challenges regardless of the rental strategy.
Who checks the property?
Who organises maintenance?
Who deals with a problem between guests?
Who coordinates cleaning?
Who communicates with tenants?
Who arranges repairs?
Who checks the property after a tenancy ends?
For many international owners, these questions are just as important as the potential rental return.
This is where professional local property management becomes particularly useful.
Italy Property Finders can continue supporting clients after the purchase has been completed.
Our relationship does not necessarily end when you receive the keys.
For clients who live abroad or prefer not to manage their Italian property personally, we can provide ongoing property management and rental management services.
Depending on the property and the agreed scope, this can include coordinating:
Short-Term Rentals
Property preparation and positioning, rental coordination, guest stays, cleaning and changeovers, maintenance, local suppliers and ongoing supervision of the property.
Long-Term Rentals
Preparing the property for the rental market, coordinating tenant searches and local professionals where required, managing practical aspects of the tenancy, maintenance and ongoing property supervision.
Owner Representation
For owners who already use a specialist rental company or booking platform, Italy Property Finders can also act as their local point of reference in Italy, overseeing the property and coordinating with property managers, accountants, technicians, condominium administrators and other professionals.
The exact service is tailored to the property and owner's requirements.
Where activities require a licensed real estate agent, tax adviser, lawyer or other regulated professional, we coordinate with appropriately qualified specialists.
For an international buyer, there is a significant advantage in continuity.
The team that helped you identify the property already understands:
why you purchased it, how you intend to use it, what work has been carried out and what your long-term objectives are.
The process can therefore continue from:
Property Search → Purchase → Renovation or Preparation → Rental Strategy → Property Management
rather than requiring the owner to start again with a completely new team after completion.
There is no universal answer.
Choose the strategy according to the property and your objectives.
A central Rome apartment may potentially work under either model.
A Milan apartment may benefit from strong long-term professional demand.
A Bologna property may suit students or longer-term tenants.
A Tuscan farmhouse may make more sense as a holiday property combined with personal use.
A Puglian masseria may require a professionally managed seasonal strategy.
And some properties may be better kept primarily for personal use rather than being forced into an investment model that does not suit them.
The right decision begins with the property itself.
Before deciding between short-term and long-term rental, consider:
1. Location — Is demand primarily residential, business, student or tourist?
2. Property Type — Apartment, villa, farmhouse and masseria attract different renters.
3. Realistic Rent — What income can actually be achieved rather than simply advertised?
4. Annual Occupancy — Particularly important for short-term rentals.
5. Seasonality — What happens outside peak season?
6. Management Costs — How much will it cost to operate the property?
7. Annual Ownership Costs — Include IMU, maintenance, insurance and other recurring expenses.
8. Taxation — What is the appropriate tax structure for your circumstances?
9. Regulations — What national, regional and municipal requirements apply?
10. Personal Use — Do you want to use the property yourself?
11. Management From Abroad — Who will look after the property when you are not in Italy?
12. Net Return — What realistically remains after all relevant costs?
At Italy Property Finders, we look beyond the property purchase.
Before you buy, we can help you consider whether a particular property is suited to your intended rental strategy and understand the practical implications of short-term or long-term letting.
After completion, we can continue supporting you as your local property manager in Italy, coordinating the property, rentals, maintenance and local professionals on your behalf.
For international owners, this means having one trusted local point of reference from the initial property search through to the ongoing management of the property.
Where legal, tax, technical or regulated real-estate services are required, we work alongside appropriately qualified professionals.
Not necessarily. Short-term rentals can produce higher gross revenue in some markets, but they generally involve higher operating costs, greater management and potentially more vacancy. The relevant comparison is net annual return, not nightly rate versus monthly rent.
Residential properties used for tourist or short-term rentals fall within the national CIN framework. The CIN must be obtained and displayed according to the applicable rules and included in relevant advertisements. Regional or provincial identification requirements may also continue to apply.
Where the conditions for cedolare secca are satisfied, current rules generally provide a 26% rate for short-term rental income, reduced to 21% for one property selected by the taxpayer. Individual circumstances should always be reviewed with an Italian tax professional.
Potentially yes, subject to the applicable national, regional and local requirements. Short-term rental can be particularly suitable for owners who want to retain periods for personal use.
Yes. Italy Property Finders can continue assisting after the purchase through property management, owner representation and the coordination of short-term or long-term rentals, with the exact service tailored to the property and owner's needs. Where regulated professional activities are required, we coordinate with the appropriate licensed specialists.
Yes. This is particularly relevant to our international clients. We can act as your local point of reference in Italy, overseeing the property and coordinating rentals, maintenance and the professionals involved in its ongoing management.
Finding the right property is only the beginning.
For an international owner, a successful property investment also depends on what happens after the purchase.
Whether your strategy is short-term rental, long-term rental, personal use or a combination of home and investment, the property needs to be managed correctly and the financial implications understood.
Italy Property Finders can accompany you throughout that journey:
from finding and purchasing your property to managing it and coordinating its rental while you are abroad.
The regulatory information in this guide has been checked against current official guidance from the Italian Ministry of Tourism and Agenzia delle Entrate. National requirements can interact with regional and municipal rules, so property-specific requirements should always be verified before beginning rental activity.
