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

Starting a Short-Term Rental Business in Milan

If you are considering starting a short-term rental business in Milan using platforms like Airbnb or VRBO, there are several important regulations to be aware of:

• Short-term rentals are defined as rentals of 30 days or less in Italy. You must provide a written contract to your guests for these types of rentals, although it does not need to be registered with the tax authorities.
• To offer a short-term rental in Milan, you must complete and submit a SCIA (Segnalazione Certificata di Inizio Attività) at the Impresa in un Giorno website, request permission from the city council, and verify your permission through the Turismo5 online portal to receive your CIR code (codice identificativo di riferimento). The CIR code must be displayed on all listings and advertisements for your short-term rental.
• Milan currently does not have a specific category for non-professional, short-term rental hosts. This means that whether operating as a business or not, short-term rental hosts in Milan must give notice of commencement of their rental activities (SCIA) before listing their property.
• Short-term rental income is taxed at a flat rate of 21% under the cedolare secca tax regime. This will increase to 26% starting in 2024 for hosts renting out more than one property in Milan. The cedolare secca does not allow for deduction of expenses.
• Hosts must collect and remit the tourist tax of €3 per person per night (for a maximum of 14 nights) to the city of Milan. Airbnb collects and remits this tax on behalf of hosts for qualifying rentals.
• Within 24 hours of check-in, hosts must submit detailed information about each guest, including passport details, to the Alloggiati Web portal managed by the state police.

Many Airbnb hosts in Milan report that the registration process and ongoing reporting requirements can be a hassle, but understand they are necessary to combat issues like illegal rentals and overtourism. The city has been increasing inspections and fines for non-compliance in recent years.

Despite the strict regulations, Milan remains a popular market for short-term rentals due to high demand from both tourists and longer-term visitors like students and remote workers. However, aspiring hosts should carefully review all requirements to ensure they can operate in full compliance before listing their property.

Short-Term Rental Licensing Requirement in Milan

To legally operate a short-term rental in Milan, hosts must follow several important steps to obtain the necessary license and permissions:

1. Complete and submit an SCIA (Segnalazione Certificata di Inizio Attività) at the Impresa in un Giorno website. The SCIA is a certified notification of the commencement of your short-term rental activity.
2. Request permission from the Milan city council to use your property as a short-term rental. This involves providing details about the property and your intended use.
3. Once the city council approves, verify your permission through the Turismo5 online portal. Upon verification, you will receive your CIR code (codice identificativo di riferimento).
4. Display your unique CIR code on all listings and advertisements for your short-term rental property. This code serves as proof of your registration and licensing.
5. Ensure your property meets all health and safety standards, such as having working smoke detectors, fire extinguishers, and gas/carbon monoxide detectors, if applicable. Properties rented in an "entrepreneurial form" have additional safety requirements.
6. If you will be renting out more than 3 properties or providing additional hospitality services beyond basic cleaning, you may be considered to be operating as a business. In this case, you must also submit a SCIA (Segnalazione Certificata di Inizio Attività) to notify us of your business activity.

It's important to note that Milan currently does not have a specific category for non-professional, short-term rental hosts. This means that whether you are operating as an individual or a business, you must complete the SCIA notification process before listing your property.

Failing to properly register and obtain a license for your short-term rental in Milan can result in fines and penalties. In recent years, the city has increased inspections to identify and shut down illegal rental operations.

While the licensing process involves several steps, it is a necessary requirement to legally operate a short-term rental in Milan. The regulations aim to better monitor the growing short-term rental market and combat issues like illegal rentals and overtourism in Italy's second-largest city.

Required Documents for Milan Short-Term Rentals

To legally operate a short-term rental in Milan, hosts must provide several key documents and pieces of information to the authorities:

1. Proof of property ownership or landlord authorization to use the property as a short-term rental. If the host is a tenant, they must obtain written permission from the property owner.
2. A copy of the host's identification document, such as a passport or national ID card.
3. The property's cadastral data includes the cadastral category, land registry code, sheet, parcel, and sub number. This information identifies the property in the official land registry.
4. Completion of the SCIA (Segnalazione Certificata di Inizio Attività) form to notify the commencement of short-term rental activity. This is submitted online through the Impresa in un Giorno website.
5. Permission from the Milan city council to use the property as a short-term rental. This involves providing details about the property and intended use.
6. Verification of permission through the Turismo5 online portal to receive the CIR code (codice identificativo di riferimento). The CIR code must be displayed on all listings and advertisements for the property.
7. Hosts must collect passport information for each guest and submit it through the Alloggiati Web portal to the state police within 24 hours of check-in. This is required by national security laws.
8. If food and beverage are provided to guests, relevant food safety certifications and documentation may be required.

Gathering and submitting the required documentation is crucial in legally operating a short-term rental in Milan. Failure to provide the necessary information can result in fines and penalties for hosts.

The registration process and ongoing reporting requirements can be time-consuming, but are essential for compliance with the city's regulations to monitor the growth of short-term rentals. Many hosts find it helpful to engage a local attorney or property manager to assist in navigating the bureaucratic process.

Despite the strict rules, demand for short-term rentals remains high in Milan from both tourists and business travelers. By carefully adhering to the documentation requirements, hosts can operate successful rentals while contributing to the city's efforts to balance tourism's economic benefits with the residents' quality of life.

Milan Short-Term Rental Taxes

Like many other Italian cities, Milan imposes taxes on short-term rental income and requires hosts to collect a tourist tax from guests. Here are the key tax considerations for short-term rentals in Milan:

1. Short-term rental income is subject to a flat tax rate of 21% under the "cedolare secca" regime. Starting in 2024, this rate will increase to 26% for hosts renting out more than one property in Milan.
2. The cedolare secca is a substitute tax that replaces IRPEF (personal income tax) and additional local taxes. It is applied to gross rental income with no deductions allowed for expenses.
3. Hosts must collect and remit a tourist tax of €3 per person per night for up to 14 nights. The exact amount varies based on the type of accommodation. Airbnb collects and remits this tax on behalf of hosts for qualifying rentals.
4. Within 24 hours of check-in, hosts are required to communicate guest information, including passport details, to the online Alloggiati Web portal managed by the state police. Failure to do so can result in fines.
5. Income from short-term rentals must be declared annually, either as part of the host's overall income tax return or separately under the Cedolare Secca regime.
6. It's estimated that tax evasion on short-term rental income in Italy exceeds €1 billion per year. Authorities have been increasing enforcement efforts, including data-sharing agreements with platforms like Airbnb.

Navigating Milan's short-term rental taxes can be complex, especially with the upcoming increase in the cedolare secca rate for hosts with multiple properties. The city has been cracking down on illegal rentals and tax evasion in an effort to better regulate the growing short-term rental market.

For hosts, it's crucial to stay informed about their tax obligations and to keep accurate records of rental income and expenses. Many find it helpful to consult with a local tax professional experienced in short-term rental taxation.

Despite the strict rules, demand for short-term rentals in Milan remains high from both tourists and business travelers. By ensuring full tax compliance, hosts can operate successful rentals while contributing to the city's efforts to balance the economic benefits of tourism with the needs of local residents.

Italy Wide Short-Term Rental Rules

In addition to city-specific regulations, there are also some nationwide rules that apply to short-term rentals across all of Italy:

1. Short-term rentals are defined as stays of 30 days or less. Anything longer than 30 days is considered a standard rental contract and subject to different rules.
2. Hosts must provide a written rental contract for all short-term stays, even if booked through platforms like Airbnb. However, for stays 30 days or less, this contract does not need to be registered with the tax authorities.
3. Within 24 hours of a guest's arrival, hosts must submit the guest's details, including a copy of their passport, to the online Alloggiati Web portal managed by the state police. This is required for security reasons.
4. Income from short-term rentals is subject to a flat 21% tax rate known as the "cedolare secca." Starting in 2024, this will increase to 26% for hosts renting out more than one property.
5. Airbnb and other platforms are required to collect and remit tourist taxes on behalf of hosts in many Italian cities. The exact tax varies by location but is often around €3-5 per person per night.
6. There are proposals for a new nationwide registration system that would assign a unique code to each short-term rental property. This code would need to be displayed on all listings. Fines for non-compliance could be up to €5000.

While aimed at better regulating the fast-growing short-term rental market, some argue the national rules don't go far enough to address issues like over-tourism and housing affordability in Italy's most popular destinations. Cities like Venice, Florence, and Milan are implementing additional restrictions on top of the nationwide regulations.

However, the sector remains an important part of Italy's tourism economy. With careful attention to the evolving legal requirements, operating a short-term rental business is still possible. Consulting with local experts is recommended to ensure full compliance with national, regional, and municipal rules.

Does Milan Strictly Enforce STR Rules?

Milan has been increasing enforcement of its short-term rental regulations in recent years, but compared to some other Italian cities like Venice, the rules are not as strict and Milan remains relatively Airbnb-friendly.

Hosts are required to register their short-term rental activity, obtain a CIR code to display on listings and submit guest information to the Alloggiati Web portal. While this creates some additional administrative work, most hosts on forums like Bigger Pockets and Reddit report being able to operate in compliance with Milan's STR rules without major issues.

One Bigger Pockets user shared their experience: "I've been hosting an Airbnb in Milan for 2 years now. Yes, there is some bureaucracy involved in registering and reporting guest info, but overall, I've found the city to be fairly reasonable to work with compared to the horror stories I hear from places like Venice or Florence."

Another host on Reddit commented: "Milan definitely has rules for short-term rentals, but enforcement seems to be somewhat sporadic. I know many hosts operating here without incident, as long as you make an effort to follow the main requirements like having a CIR code and submitting guest details."

There are certainly some hosts operating under the radar and not in full compliance, but the general consensus is that Milan is not overly aggressive in cracking down on Airbnb activity compared to other Italian hotspots. The city seems to be seeking a balance between regulating the industry and still allowing short-term rentals to operate.

However, it's important to note that the landscape is evolving. With Milan considering new restrictions like a 90-day annual cap on rentals and Italy proposing nationwide regulations, hosts may face additional limitations in the future. But for now, Milan remains one of the more Airbnb-friendly cities in Italy, even if the days of completely unregulated rentals are over.

Hosts who make a genuine attempt to understand and comply with the city's STR rules can still run successful Airbnb businesses in Milan. But as always, it's critical to stay informed of any regulatory changes on the horizon. Engaging a local property manager or consulting an attorney can help hosts navigate the compliance issues and reduce risk.

How to Start a Short-Term Rental Business in Milan

If you're interested in starting a short-term rental business in Milan, Italy, follow these key steps to get started:

1. Research Milan's short-term rental regulations thoroughly. Milan requires hosts to register their activity, obtain a CIR code, and submit guest information to authorities. Make sure you understand all the licensing, registration, tax, and reporting requirements.
2. Decide on your rental property. Consider factors like location, property type, size, and amenities that will appeal to your target guests. Properties in the city center and near popular attractions tend to perform well.
3. Register your short-term rental activity by completing and submitting an SCIA (Certified Notice of Commencement of Activity) through the Impresa in un Giorno website. This notifies the city of your intention to operate a short-term rental.
4. Request permission from the Milan city council to use your property as a short-term rental. Provide details about the property and your intended use.
5. Once the city council approves, verify your permission through the Turismo5 online portal. Upon verification, you will receive your CIR code (codice identificativo di riferimento), which must be displayed on all listings and advertisements for your property.
6. Prepare your property for guests. Furnish and equip the rental to a high standard to appeal to guests and garner positive reviews. Take professional photos for your listings. Establish house rules and create a guidebook with local recommendations.
7. Create listings on popular booking platforms like Airbnb and Vrbo. Write an enticing description, use high-quality photos, and set competitive rates. Consider using a dynamic pricing tool to optimize your earnings.
8. Arrange for cleaning and maintenance between guest stays. You'll need a reliable cleaning service to turnover the property. Establish a process for regular maintenance and handling any repairs that arise.
9. Understand your tax obligations. Short-term rental income is taxed at a flat rate of 21% under the cedolare secca regime (increasing to 26% in 2024 for hosts with multiple properties). You must also collect the tourist tax from guests and remit it to the city.
10. Manage guest communication and check-ins. Establish a system for promptly responding to inquiries and sending key details like check-in instructions. Consider using a key lockbox or smart lock for self check-in. Remember to submit each guest's passport information to the Alloggiati Web portal within 24 hours of their arrival.

Starting an Airbnb rental business in Milan can be a lucrative venture, but it's important to ensure you are in full compliance with the city's regulations. The registration process and ongoing reporting requirements can be time-consuming, so many hosts find it helpful to engage a local property management company for assistance.

With Milan's popularity as a tourist and business travel destination, a well-run short-term rental can attract steady bookings. You can build a successful business in this dynamic market by following the proper steps to establish your legal rental and providing a great guest experience.

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

If you have questions about short-term rental regulations and zoning in Milan, here are the key contacts and resources:

1. City of Milan - Economic Activities and Authorizations Department (Comune di Milano - Direzione Attività Produttive e Autorizzazioni)

Address: Via Larga, 12 - 20122 Milano
Phone: +39 02 884 63090
Email: autorizzazioni.produttive@comune.milano.it
Website: https://www.comune.milano.it/aree-tematiche/attivita-produttive-e-commercio

2. Metropolitan City of Milan - Economic Development Department (Città Metropolitana di Milano - Area Sviluppo Economico)

Address: Via Vivaio, 1 - 20122 Milano
Phone: +39 02 7740 1
Email: sviluppo.economico@cittametropolitana.milano.it
Website: https://www.cittametropolitana.mi.it/sviluppo_economico/

3. Lombardy Region - Tourism, Territorial Marketing and Fashion Department (Regione Lombardia - DG Turismo, Marketing Territoriale e Moda)

Address: Piazza Città di Lombardia, 1 - 20124 Milano
Phone: +39 02 6765 4001
Email: turismo_moda@regione.lombardia.it
Website: https://www.regione.lombardia.it/wps/portal/istituzionale/HP/istituzione/direzioni-generali/direzione-generale-turismo-marketing-territoriale-moda

4. Italian Revenue Agency - Lombardy Regional Directorate (Agenzia delle Entrate - Direzione Regionale Lombardia)

Address: Via Manin, 25 - 20121 Milano
Phone: +39 02 65504888
Website: https://lombardia.agenziaentrate.it/

These government offices can provide the most current and authoritative information on Milan's evolving short-term rental regulations. The city's Economic Activities Department handles the registration and permitting process for short-term rentals, while the Metropolitan City and Lombardy Region oversee tourism promotion and policy.

The Italian Revenue Agency can assist with questions related to tax obligations for short-term rental income, including the cedolare secca flat tax rate and remittance of collected tourist taxes.

It's also advisable to consult with a local lawyer specializing in real estate and tourism law to ensure full compliance. Industry associations like Property Managers Italia and the Italian Association of Property Managers (Associazione Italiana Property Manager) can provide additional guidance and represent the interests of short-term rental operators.

Staying informed and engaged with the local authorities and industry groups is key to navigating Milan's complex and changing regulatory landscape for short-term rentals. With the city facing over-tourism and housing affordability challenges, operators should be prepared for further restrictions on short-term rentals.

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

Scanning through discussions on Reddit and Bigger Pockets, it's clear that many Airbnb hosts in Milan have mixed feelings about the local short-term rental regulations. Here are a few representative viewpoints:

One host on Reddit expressed frustration with the "bureaucratic hassle" of registering their short-term rental and submitting guest information to authorities. They feel the process is overly complex and time-consuming for hosts who are just trying to earn some extra income by occasionally renting out a room in their home.

In a thread on Bigger Pockets, a Milan host shared that while they understand the need for some regulation, they worry the increasing restrictions will make it too difficult for small-scale hosts to operate profitably. This host believes the rules favor professional operators with multiple properties who can better absorb the compliance costs.

Another Milan host on Reddit took a more positive view, stating that the regulations, while sometimes burdensome, are necessary to prevent the city from being overrun by tourists and to preserve housing for residents. This host appreciates that the city is trying to strike a balance and hasn't banned short-term rentals outright like some other Italian destinations.

A host on Bigger Pockets expressed confusion over the exact requirements, saying the rules seem to be constantly changing, and it's hard to keep up. They wish the city would provide clearer guidance and a more streamlined process for registration and compliance.

One Reddit user who manages several short-term rental properties in Milan said they've had to raise prices to cover the increased costs of licensing and tourist tax collection. While they haven't had major issues with compliance, they worry that the higher rates will make their listings less competitive compared to hotels which are exempt from some of the requirements.

Overall, there seems to be a general acceptance among Milan hosts that some level of regulation is inevitable and necessary. However, many feel the current system is overly complex and places a disproportionate burden on small, occasional hosts compared to larger professional operators.

Hosts appear to be looking for a clearer, more standardized registration process and more guidance from the city on exactly what is required. Some worry that if the rules become too restrictive, renting out their properties on a short-term basis will no longer be viable, taking away a valuable source of income.

At the same time, hosts who are able to comply with the regulations see them as a way to level the playing field and prevent Milan from being overwhelmed by uncontrolled short-term rental growth. Finding the right balance that allows responsible hosting to continue while still protecting the city's housing stock and livability remains an ongoing challenge that hosts are watching closely.

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.