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

Starting a Short-Term Rental Business in Florence

If you're considering starting a short-term rental business in Florence, Italy, it's crucial to understand the local regulations governing this industry. These rules are often found in zoning codes, planning codes, Florence ordinances, or discussed on real estate forums like Bigger Pockets or Reddit.

According to the City of Florence , all short-term rental operators must register their properties on the city's accommodation portal and comply with specific requirements, including:

• Obtaining approval from the local police headquarters (Questura) to host short-term guests
• Providing guest identification details like passport numbers to the authorities
• Collecting and remitting the local tourist tax, currently set at €4 per person per night for a maximum of 7 consecutive nights

The city has also announced a ban on new short-term rental registrations in the historic center, a UNESCO World Heritage site. This move aims to address housing affordability issues and the impact of overtourism on residential areas.

While existing short-term rentals in the historic center can continue operating, property owners who convert their units to long-term residential leases will receive a three-year tax break as an incentive.

On real estate forums like Bigger Pockets, potential investors have discussed the implications of these regulations, with some expressing concerns about the impact on rental income and property values.

Additionally, the Italian government is considering national legislation that would require a minimum two-night stay for short-term rentals in historic city centers and impose a registration system with identification codes for each property.

It's important to note that short-term rental regulations in Italy can vary across different regions and cities, and it's crucial to stay informed about any updates or changes to the rules in Florence specifically.

Short-Term Rental Licensing Requirement in Florence

In Florence, all short-term rental operators are required to register their properties on the city's accommodation portal and obtain approval from the local police headquarters (Questura) to host short-term guests. This registration process is mandatory for both hosted and non-hosted short-term rentals, including apartments, houses, and rooms.

The registration process involves providing detailed information about the accommodation, the owner, and the property manager (if applicable). Hosts must also confirm compliance with fire safety standards and other local regulations.

Once registered, hosts will receive a unique identification code (CIR code) that must be displayed on all listings and advertisements for their short-term rental property. Failure to obtain and display this code can result in penalties or enforcement actions by the local authorities.

In addition to the registration requirement, short-term rental hosts in Florence must collect and remit the local tourist tax, currently set at €4 per person per night for a maximum of 7 consecutive nights. This tax is collected directly by platforms like Airbnb for bookings made through their platform.

Another crucial obligation for short-term rental hosts in Florence is the submission of guest identification details, such as passport numbers, to the authorities. This requirement is outlined in Article 109 of the Royal Decree No. 773 of June 18th, 1931, which applies to anyone offering accommodations to the public for profit or renting properties for short periods of less than 30 days.

Failure to register the short-term rental property, obtain the necessary approvals, or comply with other applicable regulations can result in penalties or enforcement actions by the local council or police authorities. It is essential for hosts to familiarize themselves with the specific requirements and ensure full compliance to operate legally in Florence.

Required Documents for Florence Short-Term Rentals

To operate a short-term rental in Florence, Italy, hosts are required to provide certain documents and information to comply with local regulations. Here are some of the key documents and requirements:

Proof of Ownership or Owner's Consent

Hosts must provide evidence that they are the legal owner of the property they intend to list for short-term rental. Acceptable documents include a copy of the property title, deed, or other official documentation demonstrating ownership. If the host is not the property owner, they must obtain written consent from the owner authorizing the use of the premises for short-term rental purposes.

Registration and Permit

All short-term rental operators in Florence must register their properties on the city's accommodation portal and obtain approval from the local police headquarters (Questura). This process involves providing details about the accommodation, owner, and property manager (if applicable) and confirming compliance with fire safety standards.

Guest Identification

Hosts are required to collect and submit guest identification details, such as passport numbers or national ID cards, to the authorities. This requirement is outlined in Article 109 of the Royal Decree No. 773 of June 18th, 1931, which applies to anyone offering accommodations to the public for profit or renting properties for short periods of less than 30 days.

Tourist Tax Documentation

Short-term rental hosts in Florence must collect and remit the local tourist tax, currently set at €4 per person per night for a maximum of 7 consecutive nights. Hosts may need to provide documentation or receipts related to the collection and payment of this tax.

Fire Safety Certificates

Hosts must ensure that their short-term rental properties meet the required fire safety standards and may need to provide documentation or certificates demonstrating compliance. This could include certificates for smoke and heat alarms, evacuation diagrams, fire extinguishers, and other safety measures.

Insurance and Liability Coverage

Hosts may be required to provide proof of adequate liability insurance coverage for their short-term rental operations. This could include a certificate of insurance or other documentation from the insurance provider.

Business License or Registration

Depending on the specific circumstances, such as the number of properties being rented or the provision of additional services, hosts may need to obtain a business license or register their short-term rental activity as a commercial enterprise.

It's important to note that the specific documentation requirements may vary based on the property type, location, and any applicable local regulations. Hosts should carefully review the guidelines provided by the City of Florence and consult with local authorities or legal professionals to ensure they have all the necessary documents and comply with all applicable rules and regulations.

Florence Short-Term Rental Taxes

In Florence, Italy, short-term rental hosts are required to collect and remit various taxes from their guests. These taxes are in addition to the rental income and must be properly accounted for and paid to the relevant authorities.

Tourist Tax (Tassa di Soggiorno)

One of the primary taxes that short-term rental hosts in Florence must collect is the tourist tax, also known as the "tassa di soggiorno." This tax is levied on all guests staying in short-term rental accommodations, including apartments, houses, and rooms.

The current tourist tax rate in Florence is €5.50 per person per night, with a maximum of 7 consecutive nights. This means that for a one-week stay, the maximum tourist tax payable by each guest is €38.50.

Short-term rental hosts are responsible for collecting this tax from their guests and remitting it to the City of Florence. Failure to collect and remit the tourist tax can result in penalties and fines.

Income Tax (IRPEF or Cedolare Secca)

In addition to the tourist tax, short-term rental hosts in Florence must also pay income tax on their rental earnings. There are two main tax regimes that apply:

IRPEF (Imposta sui Redditi delle Persone Fisiche): This is the standard income tax regime, where rental income is added to the host's other income sources and taxed at progressive rates ranging from 23% to 43%.

Cedolare Secca: This is a flat tax regime specifically for rental income, with a fixed rate of 21%. To qualify for the Cedolare Secca, hosts must meet certain criteria, such as renting out no more than four properties per tax year.

Hosts have the option to choose between the IRPEF and Cedolare Secca regimes, depending on their individual circumstances and the potential tax benefits.

Value-Added Tax (VAT)

Short-term rental hosts in Florence may also be required to collect and remit Value-Added Tax (VAT) on their rental income, depending on the specific circumstances. The standard VAT rate in Italy is 22%, but there are reduced rates and exemptions for certain types of accommodations and services.

It's important for hosts to consult with a tax professional or seek guidance from the Italian tax authorities to determine their VAT obligations and ensure compliance with all applicable tax laws and regulations.

Failure to properly collect and remit taxes can result in significant penalties, fines, and legal consequences for short-term rental hosts in Florence. It is crucial for hosts to stay informed about the latest tax regulations and maintain accurate records of their rental income and expenses.

Italy Wide Short-Term Rental Rules

In Italy, short-term rental regulations are primarily governed at the national level, with some variations across different regions and cities. Here are some of the key nationwide rules and guidelines that apply to short-term rental operators across the country:

Rental Duration

According to Italian law, a rental contract is considered a "short-term rental" if the duration does not exceed 30 consecutive days. Rentals exceeding 30 days are subject to different regulations and requirements.

Contract and Guest Registration

For short-term rentals, hosts are required to provide a written contract to their guests and collect identification details, such as passport numbers or national ID cards. This information must be submitted to the local authorities through the "Alloggiati Web" portal within 24 hours of the guest's arrival.

Taxation

Short-term rental income is considered taxable income in Italy. Hosts have the option to choose between the standard personal income tax regime (IRPEF) or the flat tax regime known as "Cedolare Secca." The Cedolare Secca offers a preferential fixed rate of 21% applied exclusively to income generated by short-term rentals, but it does not allow for the deduction of expenses.

Safety Standards

Short-term rental properties must comply with fire safety standards and other safety regulations. This may include the installation of smoke alarms, fire extinguishers, and emergency evacuation plans, depending on the property type and local requirements.

Zoning and Licensing

Some cities and regions in Italy have implemented specific zoning regulations or licensing requirements for short-term rentals. For example, in Florence, hosts must register their properties and obtain approval from the local authorities before operating a short-term rental.

Code of Conduct

Several regions and cities have introduced mandatory codes of conduct for short-term rental hosts and guests. These codes outline the responsibilities and expected behavior, such as noise control, property maintenance, and respect for neighbors.

It's important to note that short-term rental regulations in Italy can vary significantly across different regions and cities. Hosts should familiarize themselves with the specific rules and requirements applicable to their local area, as well as any potential changes or updates to the national legislation.

Does Florence Strictly Enforce STR Rules? Is Florence Airbnb friendly?

Based on discussions on real estate forums like Bigger Pockets and Reddit, it appears that Florence has become increasingly strict in enforcing short-term rental rules, making it a challenging environment for Airbnb hosts compared to other cities.

Several Reddit users have shared experiences of hosts in Florence facing crackdowns and penalties for non-compliance with the city's regulations. One user mentioned that their Airbnb host had to pay a significant fine for operating without proper registration and approvals.

Another user on the r/AirBnB subreddit sought advice after their host canceled their booking due to the guest's refusal to provide identification documents, as required by Italian law. This highlights the strict enforcement of guest registration requirements in Florence.

On Bigger Pockets, potential investors have expressed concerns about the impact of Florence's regulations on rental income and property values. Some have even reconsidered investing in the city due to the stringent rules and the ban on new short-term rental registrations in the historic center.

While existing Airbnb listings in the historic center can continue operating, the city has made it clear that it will not issue new permits for short-term rentals in this area. This move aims to address housing affordability issues and the impact of overtourism on residential areas.

Overall, the consensus from these forums suggests that Florence is not particularly Airbnb-friendly compared to other cities. The city has taken a firm stance on regulating short-term rentals, and hosts who operate without proper compliance risk facing fines or enforcement actions.

While some hosts may continue to operate despite the rules, the general sentiment is that Florence's strict enforcement and regulatory environment make it a challenging market for Airbnb hosts, especially those looking to start new listings in the historic center.

How to Start a Short-Term Rental Business in Florence

Starting a short-term rental business in Florence, Italy, requires careful planning and adherence to local regulations. Here's a step-by-step guide to help you get started:

1. Research the Local Market: Analyze the demand for short-term rentals in Florence by studying occupancy rates, average nightly rates, and peak travel seasons. This will help you determine the potential profitability and target audience for your rental property.
2. Understand the Regulations: Familiarize yourself with the local zoning laws, planning codes, and ordinances related to short-term rentals in Florence. Pay particular attention to the ban on new registrations in the historic center and any restrictions based on the property's location.
3. Register Your Property: All short-term rental operators in Florence must register their properties on the city's accommodation portal and obtain approval from the local police headquarters (Questura) to host short-term guests.
4. Collect Guest Identification: Be prepared to collect and submit guest identification details, such as passport numbers or national ID cards, to the authorities within 24 hours of the guest's arrival, as required by Italian law.
5. Comply with Safety Standards: Ensure that your rental property meets all fire safety standards and other safety regulations, such as installing smoke alarms, fire extinguishers, and emergency evacuation plans.
6. Obtain Necessary Permits and Licenses: Depending on the specific circumstances, such as the number of properties being rented or the provision of additional services, you may need to obtain a business license or register your short-term rental activity as a commercial enterprise.
7. Prepare Your Property: Furnish and decorate the space to provide a comfortable and appealing experience for guests while ensuring compliance with any local regulations or guidelines.
8. Secure Appropriate Insurance: Your standard home and contents insurance policy may not cover incidents related to short-term rentals. Consult with an insurance broker to obtain landlord insurance or a standalone policy specifically designed for short-term rental properties.
9. Create an Effective Listing: Once your property is ready, create a compelling listing on popular vacation rental platforms like Airbnb or VRBO. Include high-quality photos, detailed descriptions, and highlight any unique features or amenities your property offers.
10. Understand Tax Obligations: Familiarize yourself with the tax obligations for short-term rental hosts in Florence, including the tourist tax (tassa di soggiorno), income tax (IRPEF or Cedolare Secca), and potential Value-Added Tax (VAT) requirements.
11. Stay Compliant: Regularly review and comply with any updates to local regulations, tax requirements, or industry standards related to short-term rentals in Florence. Maintain accurate records of your rental income and expenses for tax purposes.

Remember, starting a short-term rental business in Florence requires diligence, attention to detail, and a commitment to providing an exceptional guest experience while adhering to all applicable laws and regulations.

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

If you have questions or need assistance regarding short-term rental regulations and zoning in Florence, you can contact the following:

City of Florence Housing and Urban Renewal Office

Phone: +39 055 2624063
Email: direzioneurbanistica@comune.fi.it
Address: Via dell'Anguillara 17, 50122 Florence, Italy

The Housing and Urban Renewal Office at the City of Florence is responsible for administering the local planning regulations, including those related to short-term rental accommodations. They can provide guidance on zoning requirements, development applications, and any specific rules or restrictions that apply to operating a short-term rental in the area.

Florence Police Headquarters (Questura di Firenze)

Phone: +39 055 49771
Address: Via Zara 2, 50129 Florence, Italy

The Florence Police Headquarters (Questura di Firenze) is the authority responsible for granting approval to hosts who wish to offer short-term rental accommodations. Hosts must obtain this approval and register their properties on the city's accommodation portal before operating a short-term rental.

It's recommended that you contact the City of Florence Housing and Urban Renewal Office as your first point of contact for specific inquiries related to short-term rental regulations and zoning within the city. They can guide you through the local requirements and direct you to the appropriate authorities, such as the Florence Police Headquarters, to obtain the necessary approvals and registrations.

Additionally, you may find it helpful to consult with local real estate professionals or legal experts who have experience navigating the short-term rental regulations in Florence. They can provide insights and advice based on their practical knowledge of the local market and regulatory environment.

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

Based on discussions on Reddit and Bigger Pockets, Airbnb hosts in Florence generally find the local regulations manageable, but there are some concerns and frustrations expressed:

Reddit user on r/AirBnB: This user questioned the government's lack of action to address short-term rentals and their impact on rental prices. They believed it should be an "easy fix" for the government to return rental stock to the market and address the cost-of-living crisis.

Reddit user on r/AirBnB: A guest shared their experience of booking an entire house in Florence but finding one bedroom locked upon arrival. The host claimed it was due to COVID concerns, but the guest felt this should have been disclosed upfront, and the price adjusted accordingly.

Bigger Pockets user: This user asked about the best way to check if an area allows short-term rentals, indicating a desire to understand and comply with local regulations.

Reddit user on r/florence: A potential host in Florence sought advice from other hosts about managing short-term rentals, including tax implications, pricing strategies, and potential pitfalls to watch out for.

Reddit user on r/ItalyTravel: This user expressed frustration with hosts asking for additional fees beyond the advertised price, such as tourist taxes or cleaning fees, which they felt should be included upfront.

While some hosts acknowledge the need for regulations and express concerns about the impact on housing affordability, others focus on understanding and complying with the existing rules to operate legally in Florence.

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.