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

Starting a Short-Term Rental Business in Prato

If you're considering starting a short-term rental business in Prato, Italy, it's important to understand the local regulations. In general, short-term rentals of less than 30 days are allowed in residential properties in Prato as long as certain requirements are met.

To legally operate a short-term rental in Prato, property owners must:

• Register the property with the Prato municipality and obtain a CIR (Regional Identification Code). This can be done online through the Tuscany region's SUAP (Sportello Unico Attività Produttive) portal.
• Provide a written rental contract to guests, even for stays of just a few days. The contract does not need to be registered if the rental period is less than 30 days.
• Collect and remit the tourist tax of €2 per person per night to the municipality of Prato. This applies to the first 5 nights of a guest's stay.
• Comply with safety standards, including having a fire extinguisher, first aid kit, and emergency contact information available on the property.
• Short-term rentals are limited to a maximum of 90 days per year in Prato if the owner is not a resident of the property. There are no limits on the number of properties an individual can rent out on a short-term basis in Prato.

It's also important to note that income from short-term rentals is subject to taxation in Italy. Hosts can choose between the "cedolare secca" flat tax of 21% on rental income or the normal progressive income tax rates.

Overall, the regulations for short-term rentals in Prato are relatively straightforward compared to some other Italian cities. However, it's always a good idea to check with the local authorities to ensure compliance with the most up-to-date rules.

Required Documents for Prato Short-Term Rentals

To register a short-term rental in Prato and obtain a CIR code, property owners must submit the following documents through the SUAP online portal:

1. A completed SCIA (Certified Notice of Commencement of Activity) form
2. A copy of the host's identification document
3. Proof of ownership or the right to rent out the property (e.g. rental contract)
4. A floor plan of the property indicating room sizes and layout
5. A copy of the property's cadastral documents
6. Certification that the property meets hygiene and habitability standards
7. Proof of payment of the €50 CIR registration fee

Hosts must also have a written rental contract prepared for each booking, even for short stays. The contract should specify the names of the guests, duration of the stay, nightly rate, and any additional charges like cleaning fees or security deposits.

While the rental contract does not need to be registered for stays under 30 days, hosts still need to communicate guest details to the local police within 48 hours of check-in. This can be done online through the Alloggiatiweb portal.

Having proper contracts and submitting the required declarations helps ensure compliance and avoid potential fines or issues with the authorities. Proper record keeping is also important for accurately reporting rental income for tax purposes.

Prato Short-Term Rental Taxes

Short-term rental hosts in Prato are required to collect the tourist tax of €2 per person per night and remit it to the municipality. The tax applies to the first 5 nights of a guest's stay. Children under 12 years old are exempt.

Hosts can choose to pay the tourist tax monthly or quarterly. Payment can be made online through the Prato municipality's website or in person at the municipal office. Detailed records of collected tourist taxes must be maintained.

In terms of income taxes, short-term rental hosts in Prato can opt for the "cedolare secca" flat tax of 21% on gross rental income. This simplified regime is available for individuals renting out residential properties who are not operating as a business.

Alternatively, hosts can choose to pay normal income taxes on their net rental income (after deducting expenses). The progressive tax rates range from 23% to 43%. Hosts must register for a VAT number if their annual turnover exceeds €30,000.

As of 2023, the Italian government has introduced new rules requiring vacation rental platforms like Airbnb to withhold and remit the 21% flat tax on behalf of hosts. However, some types of rentals are excluded, so it's best to check how the rules apply to your specific situation.

Consulting with a local accountant or tax advisor is recommended to ensure proper compliance with Italian tax laws for short-term rentals. Failing to declare rental income or pay the correct taxes can result in penalties.

Does Prato Strictly Enforce STR Rules?

Based on discussions in online forums and social media groups, it appears that Prato does enforce short-term rental regulations, though perhaps not as strictly as some other Italian cities like Florence or Milan.

The municipality of Prato has conducted inspections and issued fines to hosts operating without proper registration or failing to collect the tourist tax. However, enforcement seems to be somewhat inconsistent.

Some hosts on platforms like Airbnb continue to operate without registering their properties or obtaining a CIR code. This may be due to a lack of awareness of the requirements or a calculated risk that the chances of getting caught are low.

That said, most experienced hosts advise complying with the rules to avoid potential issues. Getting shut down or facing fines is not worth the risk, especially as the authorities are cracking down more on tax evasion and illegal rentals.

While Prato may be slightly more lax than neighboring Florence, it is still important to follow the local laws and regulations. Properly registering your rental, collecting the tourist tax, and declaring your income will provide peace of mind and help support the development of sustainable tourism in the city.

Compared to some other Italian destinations, Prato could be considered relatively "Airbnb friendly" for hosts, given the lack of nightly limits for owner-occupied properties and the ability to rent multiple units. However, the growing concerns about housing availability and over-tourism are putting pressure on local authorities to more tightly regulate short-term rentals.

How to Start a Short-Term Rental Business in Prato

If you're interested in starting a short-term rental business in Prato, Italy, follow these steps to ensure compliance with local regulations and set yourself up for success:

1. Determine if your property qualifies for short-term rental use. In Prato, short-term rentals are allowed in residential properties classified as category A/1 to A/11, except for offices.
2. Register your property with the Sportello Unico Attività Produttive (SUAP) portal and obtain a Regional Identification Code (CIR). This process involves submitting personal and property details, along with a €50 registration fee.
3. Prepare a written rental contract template to use for each booking. The contract should include guest names, dates, pricing, house rules, and other relevant details. Ensure that guests sign the contract upon arrival.
4. Obtain liability and property damage insurance for your rental unit. This is essential to protect both you and your guests in case of accidents or damages.
5. Ensure your property meets all safety and habitability requirements, such as having fire extinguishers, first aid kits, and emergency contact information readily available.
6. Register with the Alloggiati Web portal through your local police headquarters. This is necessary to submit guest identification details, including passport or ID card copies, within 24 hours of check-in.
7. Notify the municipality of Prato about your short-term rental activity. Some municipalities require additional documentation or permits, so be sure to check with your local authorities.
8. Set up your listing on popular short-term rental platforms like Airbnb and Vrbo. Take high-quality photos and write an attractive description that highlights your property's unique features and amenities.
9. Establish a cleaning and maintenance routine to ensure your property is always guest-ready. Consider hiring a professional cleaning service or property manager to handle turnovers between bookings.
10. Collect and remit the tourist tax of €2 per person per night (for a maximum of 5 nights) to the municipality of Prato. Keep accurate records of the taxes collected and paid.
11. Stay informed about any updates to local short-term rental regulations and tax obligations. Consult with a local attorney or accountant specializing in short-term rentals to ensure ongoing compliance.

By following these steps and prioritizing guest satisfaction, you can build a successful short-term rental business in Prato. Remember to provide excellent communication, maintain a high-quality property, and showcase the best of what your location has to offer to attract positive reviews and repeat bookings.

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

If you have questions about short-term rental regulations and zoning in Prato, there are a few key contacts and resources:

SUAP (Sportello Unico Attività Produttive) Prato: This is the main office handling business activities and rental registrations in Prato. Their website has information about the CIR registration process and requirements.

Email: suap@comune.prato.it
Phone: 0574 18361
Address: Piazza del Comune 2, 59100 Prato PO

Prato Municipal Police: The local police are responsible for enforcing short-term rental regulations and conducting inspections. You can contact them to report any issues or violations.

Email: poliziamunicipale@comune.prato.it
Phone: 0574 1836900
Address: Piazza Macelli 11, 59100 Prato PO

Prato Tourism Office: The local tourism board can provide general information about operating a short-term rental in Prato and direct you to additional resources.

Email: turismo@comune.prato.it
Phone: 0574 24112
Address: Piazza del Comune 2, 59100 Prato PO

Tuscany Region Tourism Website: The official tourism portal for the Tuscany region has a section dedicated to information for property owners and managers, including links to relevant laws and regulations.

Website: https://www.visittuscany.com/en/information-for-property-owners-and-managers/

Italian Tax Agency (Agenzia delle Entrate): For questions about income taxes and the cedolare secca regime for short-term rentals, you can consult the tax agency's website or contact their local office in Prato.

Website: https://www.agenziaentrate.gov.it/portale/web/english/nse/individuals/cedolare-secca-on-rentals
Phone: 0574 1838111
Address: Via Puccetti 3, 59100 Prato PO

Consulting with a local lawyer or accountant who specializes in short-term rentals can also provide personalized guidance for your specific situation. They can help navigate the bureaucratic processes and ensure full compliance with Prato's regulations.

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

On forums like Reddit and Bigger Pockets, Airbnb hosts in Prato have mixed opinions about the local short-term rental regulations. Here are some common themes:

Registration process: Some hosts find the CIR registration process through the SUAP portal to be relatively straightforward, while others complain about the bureaucracy and paperwork required.

Tourist tax: There are differing views on the €2 per person per night tourist tax. Some hosts feel it is fair and goes toward supporting local services, while others see it as a burden that makes their listings less competitive.

Lack of clarity: Several hosts mention that the regulations are not always clearly communicated or consistently enforced. This can create confusion and uncertainty about compliance requirements.

Comparison to other cities: Prato is often seen as less strictly regulated than nearby Florence, which has tighter limits on the number of rentals per host and length of stays. However, some worry that Prato may follow suit and impose more restrictions.

Impact on housing market: There are concerns, especially from local residents, that the growth of short-term rentals is contributing to housing shortages and higher rents in Prato. Some argue for stricter rules to protect housing access for long-term residents.

Importance of compliance: Despite the complaints, most experienced hosts stress the importance of following the rules and properly registering and paying taxes. They caution against trying to fly under the radar, as the penalties for non-compliance can be steep.

Overall, hosts in Prato seem to accept the need for some level of regulation, but hope for more clarity and consistency in the rules. Many are closely watching how the short-term rental landscape evolves across Italy and advocate for policies that balance the interests of hosts, guests, and local communities.

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.