The Italian government wants to eliminate the tax exemption for short-term rentals, imposing a flat rate of 26%, which stirs controversy.

The Italian government, led by Prime Minister Giorgia Meloni, intends to eliminate the tax exemption for short-term rentals as part of the budget bill for 2026-2028. Currently, property owners can benefit from a reduced tax rate of 21% for one property, while the standard tax rate is 26%. The measure has sparked criticism from the governing coalition, especially from the Forza Italia party, which believes that the elimination of the reduced tax is a "deeply misguided choice." Marco Celani, the leader of the short-term rental association, warned that the tax increase will affect the middle classes and encourage tax evasion. Details regarding the estimated tax revenues from this measure have not yet been published, and the budget is set to be discussed in Parliament, with possible amendments before final approval. Critics of the Italian tax system argue that it favors the wealthy, leaving the middle classes to bear a heavier tax burden.