How to declare income from short-term rentals in Form 730 or Unico

Correctly declaring income from short-term rentals is an obligation that many owners find difficult to manage, especially when rentals through OTA platforms (with automatic withholding tax) are combined with direct rentals. An incorrect return can lead to tax collection notices, penalties and late-payment interest. Here is a clear guide to help you find your way.

Where income from short-term rentals is declared

Income from short-term leases must be declared in Section B of Form 730 (or Section RB of the Personal Income Tax Return) as property income. If the flat-rate tax option is chosen, the dedicated section is completed by indicating the applicable rate (21% or 26%). Income from short-term rentals does not contribute to the overall income for IRPEF purposes when the flat-rate tax option is chosen — a significant advantage for those with other high incomes.

How withholding tax from OTA platforms works

Airbnb, Booking.com and other platforms acting as intermediaries automatically apply 21% withholding tax to every payment. This withholding is an advance payment, not a final settlement. When filing the return, the owner calculates the tax due (21% or 26% of total gross revenue) and deducts the withholding already paid by the platforms. If they managed more than one property through OTAs, the rate is 26% for revenue from the second property onwards: they will have to pay the additional 5%.

Documents needed for the tax return

To complete the income tax return correctly, collect: the annual statement from each OTA platform (downloadable from the Airbnb, Booking, etc. dashboard) showing gross revenue and withholding applied; rental contracts, if any; and the property's cadastral details. Those who use a property manager such as YouBnb receive the pre-completed Unico Form directly with all the necessary data.

Withholding tax, flat-rate tax and Section RB: how to complete them correctly

YouBnb pays the flat-rate tax on your behalf during the year and provides you with the pre-completed Unico Form at year-end: hand it to your accountant and you are done. No calculations, no errors. Request a Free Evaluation.

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