Capri Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Capri

Short-term rentals, such as those listed on Airbnb and VRBO, are subject to specific regulations on the island of Capri, Italy. Hosts must register their property with the local tourism office and obtain a license number (CIR) that must be displayed on all advertisements.

To register, property owners need to submit an application form (SCIA) along with supporting documents like proof of ownership, floor plans, and a self-certification of safety and habitability standards. Properties must meet certain requirements for furnishings, amenities, and sanitation.

Capri has taken steps to regulate the growth of vacation rentals, particularly in the crowded city center. In 2017, the municipality passed a resolution limiting short-term rentals in residential zones to 90 days per year. This measure aims to preserve housing access for local residents and prevent the displacement of traditional accommodation providers.

The island also has a cap on the total number of tourist beds, which includes both hotels and short-term rentals. As of 2022, there were approximately 2,500 registered holiday rental beds on Capri. New permit applications are subject to this overall limit.

Despite the regulations, Capri remains a popular destination for vacation rentals. The island's picturesque villages, luxurious villas, and stunning coastal views make it a sought-after spot for tourists. Hosts can command premium rates, especially during the peak summer season.

However, the registration process and zoning restrictions do present hurdles for short-term rental operators. Some real estate investors on forums like BiggerPockets question if the 90-day limit makes Capri a viable market for dedicated Airbnb properties. Others note that the high property costs and limited inventory can make it challenging to find a suitable rental unit.

For those who do secure a short-term rental permit, there are also tax obligations to consider. Rental income is subject to Italian national and regional taxes, as well as a local tourist tax collected by the municipality. Hosts must report their earnings and remit the appropriate taxes to avoid penalties.

Overall, starting a short-term rental business on Capri requires navigating a complex web of local regulations and market conditions. While the potential for high returns exists, hosts must be diligent about compliance and realistic about the challenges of operating in a constrained environment. Consulting with local experts and officials is essential to ensure a successful and legal venture.

Short-Term Rental Licensing Requirement in Capri

To legally operate a short-term rental property in Capri, owners must obtain a license from the regional tourism authorities. This requirement applies to any property rented out for tourist purposes for periods of less than 30 days at a time.

Property owners need to submit a SCIA (Segnalazione Certificata di Inizio Attività) application to the municipality, declaring the start of their short-term rental activity. The SCIA is a self-certification that the property meets all the necessary requirements for tourist accommodations. Along with the SCIA, owners must provide supporting documentation such as:

• Proof of ownership of the property
• Floor plans showing room dimensions and intended use of each space
• A self-certification of safety and habitability standards
• A copy of the owner's identification document

Once the SCIA is submitted, the municipality will issue a CIR (Codice Identificativo Regionale) code, which is a unique identifier for the short-term rental property. The CIR code must be displayed in all advertising and listings for the property, including on platforms like Airbnb and VRBO.

It's important to note that Capri has implemented specific zoning restrictions on short-term rentals. In 2017, the municipality passed a resolution limiting rentals in residential areas to a maximum of 90 days per year. This measure aims to preserve housing availability for local residents and prevent the displacement of long-term renters.

Capri also has a cap on the total number of tourist beds allowed on the island, which includes both hotels and short-term rentals. As of 2022, there were approximately 2,500 registered holiday rental beds. New license applications are subject to this overall limit, and may be denied if the cap has been reached.

Failure to obtain the proper license and display the CIR code can result in fines ranging from €500 to €3,000. Repeat offenders may face steeper penalties, including the suspension of their rental activity.

The licensing process adds an administrative hurdle for short-term rental operators in Capri, but it is a necessary step to legally participate in the island's lucrative tourism market. Hosts should carefully review the requirements, gather all necessary documentation, and consult with local officials to ensure they are in full compliance with the regulations.

Required Documents for Capri Short-Term Rentals

To legally operate a short-term rental in Capri, property owners must gather and submit several required documents as part of the registration process. These documents ensure compliance with local regulations and provide necessary information to the authorities. Here are the key documents needed:

1. SCIA (Segnalazione Certificata di Inizio Attività) application: This is a self-certification form declaring the start of the short-term rental activity. It affirms that the property meets all the necessary requirements for tourist accommodations.
2. Proof of ownership: Owners must provide a copy of the property deed or other legal document demonstrating their ownership of the property.
3. Floor plans: Detailed floor plans showing the layout and dimensions of the property, including the intended use of each space, must be submitted.
4. Cadastral documents: The property's unique cadastral reference number and cadastral map, which can be obtained from the local land registry office, are required for registration.
5. Identification documents: Property owners must submit a copy of their valid government-issued identification, such as a passport or national identity card.
6. Certificate of habitability: This document, issued by the municipality, certifies that the property meets the necessary health, safety, and structural standards for short-term rentals.
7. Insurance policy: Hosts are required to have a valid insurance policy covering potential damages and liabilities arising from the rental activity.
8. Property management contract: If the property is managed by a third-party company, a copy of the management contract must be provided.
9. Rental agreement template: Owners should submit a draft of the rental agreement that will be used with guests, ensuring it complies with local regulations.

In addition to these documents, short-term rental operators in Capri must also obtain a CIR (Codice Identificativo Regionale) code from the Campania region. This unique identifier must be displayed in all advertisements and property listings.

Once all the necessary documents are gathered, hosts can proceed with registering their property on the regional tourism portal and applying for their CIR code. It's important to note that document requirements may vary slightly depending on the specific circumstances of the property and owner. Consulting with local authorities or a legal professional specializing in tourism law can help ensure a smooth registration process.

Capri Short-Term Rental Taxes

Short-term rental hosts on the island of Capri are subject to various taxes at the national, regional, and local levels. Understanding and complying with these tax obligations is crucial for operating a successful and legal vacation rental business.

At the national level, rental income from short-term stays is subject to Italy's personal income tax (IRPEF). The tax rate for non-professional hosts who opt for the flat-rate "Cedolare Secca" regime is 21% on gross rental income. This simplified regime is available for individuals renting out up to four residential properties.

However, the 2024 Italian Budget Law introduced changes to the Cedolare Secca rate for hosts with multiple listings. Now, the 21% flat tax only applies to income from one rental unit chosen by the host. Income from additional units beyond the first is taxed at a higher rate of 26%.

Regionally, the Campania region (where Capri is located) imposes a tourist tax on short-term rentals. The tax rate varies depending on the type of accommodation and the season, ranging from €1.50 to €5.00 per person per night. Hosts are responsible for collecting this tax from guests and remitting it to the local authorities.

At the municipal level, Capri has implemented zoning restrictions and permit requirements for short-term rentals. In 2017, the city council passed a resolution limiting new vacation rental licenses in residential areas to 90 days per year. The island also has a cap on the total number of tourist beds, including both hotels and short-term rentals.

To ensure full tax compliance, Capri hosts should:

1. Register with the Campania Regional Tourism Registry and obtain a CIR (Codice Identificativo Regionale) code to display on all listings.
2. Declare all rental income on their annual Italian income tax return, opting for the Cedolare Secca regime if eligible and selecting one property for the 21% rate.
3. Collect the regional tourist tax from guests and remit it to the local authorities on a regular basis.
4. Comply with municipal zoning restrictions and licensing requirements, including the 90-day annual limit in residential zones.
5. Keep detailed records of rental income and expenses to support any deductions claimed and respond to potential audits.

While the tax landscape for short-term rentals on Capri can be complex, proactive compliance and professional guidance can help hosts navigate their obligations successfully. By staying informed of evolving national, regional, and local regulations, vacation rental operators can minimize their risk and focus on providing exceptional guest experiences in this iconic Italian destination.

Does Capri Strictly Enforce STR Rules?

Based on discussions in real estate forums and online communities, it appears that Capri does enforce its short-term rental regulations quite strictly compared to other Italian destinations. The island's unique status as a popular tourist hotspot with limited housing stock has prompted local authorities to take a proactive approach to managing vacation rentals.

According to posts on BiggerPockets, Capri requires hosts to register their properties with the regional tourism authorities and obtain a CIR (Codice Identificativo Regionale) code that must be displayed on all listings. Failure to comply can result in hefty fines ranging from €500 to €3,000.

Reddit users note that Capri has implemented specific zoning restrictions, limiting new short-term rental licenses in residential areas to a maximum of 90 days per year. The island also has an overall cap on the total number of tourist beds, including both hotels and vacation rentals. These measures aim to preserve housing access for local residents and prevent over-tourism.

Compared to cities like Rome or Florence, which have a more laissez-faire approach to Airbnb regulation, Capri appears to be less Airbnb-friendly overall. The registration process, zoning limits, and bed cap create significant barriers for short-term rental operators.

However, this doesn't mean there are no active Airbnb hosts on Capri. As of 2023, there were still over 500 active listings on the platform, suggesting a dedicated community of vacation rental operators. But the general consensus among BiggerPockets and Reddit users is that Capri's regulatory environment poses substantial compliance risks for those operating outside the rules.

One host on Reddit shared their experience of having their Airbnb listing removed after failing to provide a valid CIR code during an audit. Another mentioned receiving a fine for exceeding the 90-day rental limit in a residential zone.

While some hosts may attempt to fly under the radar, the prevailing sentiment is that Capri's authorities are actively enforcing short-term rental regulations. The island's small size and limited housing stock make it easier for officials to identify and crack down on non-compliant operators.

How to Start a Short-Term Rental Business in Capri

Starting a short-term rental business on the island of Capri requires careful planning and adherence to local regulations. Here are the key steps to get started:

1. Research the zoning restrictions in Capri. The municipality has implemented limits on new short-term rental licenses in residential areas, capping rentals at 90 days per year. Certain neighborhoods, like the historic center, may have additional restrictions.
2. Identify a property that meets the requirements for short-term rentals. Properties must have a valid first occupation license (licenza di prima occupazione) and meet safety and habitability standards set by the regional tourism authorities.
3. Register your property with the Campania Regional Tourism Registry by submitting a SCIA (Segnalazione Certificata di Inizio Attività). This involves providing documentation like proof of ownership, floor plans, and a sworn declaration affirming compliance.
4. Obtain a CIR (Codice Identificativo Regionale) code from the regional tourism office. This unique identifier must be displayed on all advertisements and listings for your short-term rental property.
5. Ensure your property meets the quality standards outlined in regional tourism regulations. This includes having air conditioning, WiFi, a fully equipped kitchen, and a first aid kit. There are also minimum size requirements based on the number of guests.
6. Secure appropriate insurance coverage for your short-term rental business. This should include liability insurance to protect against potential damages or injuries.
7. Register with the relevant tax authorities and obtain any necessary business licenses. Short-term rental income is subject to personal income tax in Italy, with different rates for resident and non-resident owners.
8. Set up systems for collecting and reporting guest information to local police within 24 hours of check-in, as required by national regulations. This typically involves an online portal like Allogiati Web.
9. Invest in high-quality marketing materials, including professional photography and detailed listing descriptions. Highlight your property's unique features, proximity to attractions, and any special amenities or services offered.
10. List your property on popular short-term rental platforms like Airbnb and VRBO, making sure to include the required CIR code. Develop a competitive pricing strategy based on seasonality, demand trends, and comparable listings in the area.
11. Establish efficient operations for guest communication, cleaning, maintenance, and key exchanges. Consider hiring a local property management company or building a team of reliable vendors and contractors.
12. Stay informed about any changes to Capri's short-term rental policies or additional regulations that may be implemented. Adjust your business practices accordingly to remain compliant and avoid potential fines or legal issues.

While Capri's regulatory environment poses challenges, hosts who diligently follow the rules can still find success in this highly sought-after vacation destination. By prioritizing compliance, guest satisfaction, and responsible tourism practices, short-term rental operators can contribute to the island's vibrant tourism economy while preserving its unique character and charm.

Who to Contact in Capri about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations and zoning on the island of Capri, there are a few key contacts that can provide guidance:

1. Capri Municipal Police (Polizia Municipale di Capri):

The local police are responsible for enforcing short-term rental regulations and can provide information on registration requirements, zoning restrictions, and penalties for non-compliance.

Phone: +39 081 838 6202
Email: poliziamunicipale@cittadicapri.it

2. Capri Town Hall - Urban Planning Department (Comune di Capri - Ufficio Tecnico):

The urban planning office can clarify zoning rules and any specific restrictions on short-term rentals in certain areas of the island, such as the historic center or residential neighborhoods.

Phone: +39 081 838 6230
Email: lavoripubblici@cittadicapri.it

3. Campania Region Tourism Agency (Agenzia Regionale per la Promozione del Turismo della Campania):

The regional tourism agency can provide general information on short-term rental regulations in Campania, the region where Capri is located. They may also have resources for hosts looking to promote their listings.

Phone: +39 081 410 1211
Email: info@incampania.com

4. Italian Property Managers Association (Associazione Italiana Property Manager):

This national organization represents the interests of property managers and short-term rental operators in Italy. They can offer guidance on industry best practices and regulatory compliance.

Phone: +39 02 8736 5919
Email: segreteria@aipmi.it

When contacting these entities, be prepared to provide details about your property, including its address, type (apartment, villa, etc.), and intended use as a short-term rental. Having this information ready will help them give you the most relevant and accurate guidance.

It's also wise to consult with a local attorney specializing in real estate and tourism law. They can provide personalized advice based on your specific circumstances and help ensure you are fully compliant with all applicable regulations.

By engaging with these key contacts and experts, you can navigate the short-term rental landscape on Capri with greater confidence and peace of mind. Don't hesitate to reach out and ask questions - they are there to help you understand and adhere to the rules governing this important sector of the island's tourism economy.

What Do Airbnb Hosts in Capri on Reddit and Bigger Pockets Think about Local Regulations?

Discussions on forums like Reddit and BiggerPockets provide insight into how Airbnb hosts in Capri feel about the island's short-term rental regulations:

One host on the Italy Travel subreddit mentioned that the registration process with the Campania Regional Tourism Registry can be burdensome but is necessary to operate legally. They noted that Capri has been actively enforcing regulations, with inspectors cross-checking Airbnb listings against the official registry.

Another Capri host on BiggerPockets shared that the municipality's zoning restrictions limiting new licenses in residential areas to 90 days per year have made it challenging to find eligible properties. Many neighborhoods are essentially off-limits, constraining supply and driving up prices for compliant short-term rentals.

Some Reddit users have criticized Capri's proposed cap on the total number of tourist beds, including vacation rentals. They argue these measures unfairly penalize responsible operators and won't effectively curb overtourism. Instead, they suggest stricter enforcement of existing rules against "bad actors."

However, other BiggerPockets members have adopted a more pragmatic stance. While acknowledging that Capri's regulations are strict compared to those of other Italian markets, they note that the island is still more permissive than Barcelona or Palma de Mallorca, which have total Airbnb bans in certain zones. One investor advised focusing efforts on properties in the permitted areas and ensuring diligent compliance.

The overall sentiment seems to be one of resigned acceptance among Capri hosts. While the bureaucracy and restrictions are frustrating, most recognize the rules aim to balance tourism with resident needs. As one Reddit user put it, "The Wild West days are over. If you want to do Airbnb in Capri, play by the rules and adapt your strategy accordingly."

Hosts on these forums emphasize the importance of carefully reviewing all regulations, maintaining proper documentation and licenses, and consulting local experts. Operating a short-term rental in Capri's tightly controlled market requires meticulous compliance to avoid penalties and legal issues.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.