What does a holiday rental in Italy earn?
Across the markets Terrivio tracks, gross yields in Italy typically range from 5–8% and net yields from 2–4.5% after operating costs and acquisition costs. The spread between the two is the whole story: platform fees, cleaning, management, utilities, insurance and local taxes usually consume 35–50% of gross revenue.
Worked example: a €220,000 property at €120 per night and 58% occupancy books about 212 nights and grosses roughly €25,440 a year (11.6% gross yield). After 25% variable costs and €3,800 fixed costs, NOI is about €15,280 — a net yield of 6.3% on the total investment of €242,000.
Purchase costs and taxes in Italy
Budget roughly 10% on top of the asking price for acquisition costs. The main component is the 9% registration tax on cadastral value (second home) · 10% VAT new-build. These costs are sunk on day one, which is why Terrivio divides NOI by the total investment — not the asking price — to compute net yield.
Rental income can be taxed at the flat cedolare secca of 21% (26% from the second STR property onwards, up to four units) instead of progressive IRPEF. IMU is due yearly on second homes.
Tourist tax: €1–10 per night depending on the comune. It is normally collected from guests but affects your competitive nightly rate.
Short-term rental rules in Italy
Every short-term rental must display a national CIN code (mandatory since 2025) and meet fire-safety rules. Florence has banned new STRs in its historic centre, Venice caps nights, and Rome and Milan require SCIA notification.
Regulation is the biggest single risk in European STR investing. Terrivio's risk score weights regulatory risk at 25% and flags night caps, licence requirements and enforcement intensity for every analysed listing.
Where to look: cities and portals in Italy
Popular short-term rental locations include Rome, Florence, Milan, Lake Como & Garda, Puglia and Sicily. Each has a different seasonality profile — Terrivio shows the 12-month revenue curve so you can see how much of the year carries the return.
Listings are mostly published on Immobiliare.it, Idealista, Casa.it and Subito. Terrivio reads these portals directly: paste the listing URL and the pipeline extracts price, size, rooms and location automatically.
How to analyse a Italy listing with Terrivio
- Copy the listing URL. Open the property on Immobiliare.it or another supported portal and copy the address bar URL.
- Paste it into Terrivio. Terrivio scrapes the listing, geocodes the address and pulls market ADR and occupancy for the segment (property type, bedrooms, location).
- Review yield and cashflow. You get gross and net yield, NOI, monthly cashflow, break-even occupancy and 10-year IRR — using Italy-specific acquisition costs and taxes.
- Check risk, tax and rules. The report shows the 10-dimension risk score, the recommended tax regime for Italy and the STR rules that apply to the exact city.
Frequently asked questions
Is a holiday home in Italy a good investment in 2026?
It depends on the micro-location and on regulation. Typical net yields are 2–4.5%; the best results come from locations with year-round demand and clear licensing. Always model the net figure, not the gross.
How much are purchase costs in Italy?
Plan for roughly 10% of the price: 9% registration tax on cadastral value (second home) · 10% VAT new-build, plus notary, registry and agent fees where applicable.
Do I need a licence to rent out short-term in Italy?
Every short-term rental must display a national CIN code (mandatory since 2025) and meet fire-safety rules. Florence has banned new STRs in its historic centre, Venice caps nights, and Rome and Milan require SCIA notification.
Which Italy property portals does Terrivio support?
Terrivio analyses listings from Immobiliare.it, Idealista, Casa.it and Subito and 40+ other European portals. Paste any listing URL to start.