Italy tightens short-term rental rules with heavier taxes and potential local zoning restrictions, unlike Greece’s lighter regulations.
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Italy is preparing stricter regulations for short-term rentals, moving beyond increased taxation to potential administrative restrictions. The 2026 Budget Law increases tax burdens: 21% cedolare for the first home rental and 26% for the second; from the third property onward, the activity is presumed to be a business, requiring VAT registration and social security contributions, which was previously only assumed after five properties. These rules add to the mandatory national identification code (Cin) starting in 2025. Furthermore, new administrative rules may impose specific zoning for short-term rentals or allow municipalities to limit the number of rentable properties in certain areas, a trend already seen with legislation passed by Tuscany and Emilia Romagna. Greece has a less severe regulatory framework; its initial measures in 2025 introduced minimum safety and quality requirements with penalties up to four times revenue for repeat offenses. VAT exemption applies to one or two properties without extra services, but three or more properties classify the activity as a business subject to 13% VAT and AADE registration. The only territorial restriction in Greece is a ban on new short-term rentals in central Athens due to market saturation. Despite fiscal incentives for long-term rentals, rental prices continue to rise, and political criticism mounts regarding housing access in Athens.
