Italy's 2026 tax reforms affect rentals, wages and debt amnesty

The 2026 Italian finance bill tightens rules for short‑term rentals. The threshold for opening a VAT number is lowered; owners of a third property must operate as a business and apply higher cedolare secca rates (21% for the first home, 26% for the second, and the full 5% VAT regime for the third and beyond). The government expects the measure to raise only about €13 million a year, prompting many owners to consider long‑term leases or more complex legal and illicit structures to avoid the new obligations.

The same legislation introduces tax relief on wage increases. A substitute tax of 5 % applies to salary increments linked to collective‑bargaining renewals, including retroactive raises, holiday pay and other regular allowances, while a 15 % substitute tax covers additional payments for night, weekend, holiday and shift work, subject to a €1,500 ceiling. These incentives are valid for 2026 and require a national collective agreement to be in force.

A third component, the "Rottamazione Quinquies 2026" tax amnesty, moves into its operational phase. The Revenue Agency is sending notices to taxpayers with debts incurred between 2000 and 2023, offering cancellation of penalties and interest and payment of the principal only. Debtors can spread payments over up to nine years in as many as 54 bimonthly installments. The admission window runs from September to the end of October 2026, with the first payment due in 2027.