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

Starting a Short-Term Rental Business in Venice

If you are considering starting a short-term rental business in Venice 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 Venice, you must register the property with SUAR (Single Desk for Receptive Activities of the Tourism, Professional Training and Work Department) and obtain a CIR code (codice identificativo di riferimento) which is an alphanumeric code that must be displayed on all listings and advertisements.
• You can rent out a maximum of 3 properties in Venice before it is considered a business operation requiring additional permits and taxes.
• Venice has introduced measures to regulate short-term rentals and combat overtourism in the city. There are limits on the number of properties that can be rented out as short-term accommodations and fines for non-compliance.
• Hosts must register their guests' information, including passport details, with the state police's Alloggiati Web online portal within 24 hours of check-in.
• Venice imposes a tourist tax of €3.50 per person per night (for a maximum of 5 nights), which hosts are responsible for collecting from guests and remitting to the city.
• Income from short-term rentals is taxed at a flat rate of 21% under the Cedolare Secca tax regime for individuals renting out properties. This does not allow for deduction of expenses.

Many cities in Italy, including Venice, Florence, and Rome, have been cracking down on short-term rentals in recent years to combat issues like overtourism and housing shortages. New national legislation is also being proposed to further regulate the sector.

While it is still possible to operate a short-term rental business in Venice, the increasing regulations mean it is important to make sure you are in full compliance. This may impact the potential profitability compared to a few years ago. Some real estate investors in Italy are shifting focus to medium-term rentals of 1-18 months to avoid the more stringent short-term rental rules.

Short-Term Rental Licensing Requirement in Venice

To legally operate a short-term rental in Venice, hosts must obtain a license and follow several important regulations:

1. All short-term rentals must be registered with the city's SUAR (Single Desk for Receptive Activities of the Tourism, Professional Training and Work Department). This applies to rentals of residential properties for periods of less than 30 days.
2. Upon registration, hosts receive a CIR code (codice identificativo di riferimento), a unique alphanumeric identifier. This CIR code must be clearly displayed on all listings and advertisements for the short-term rental property.
3. There is a limit of 3 short-term rental properties per host in Venice. Renting out more than 3 properties is considered a commercial business operation and requires additional permits and tax implications.
4. 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 reporting is required by national anti-terrorism laws.
5. Venice imposes a tourist tax of €3.50 per person per night for the first 5 nights of a stay. Hosts are responsible for collecting this tax from guests and remitting it to the city.
6. Short-term rental income is subject to taxation at a flat rate of 21% under the cedolare secca regime for individuals, with no deduction of expenses allowed. Business owners may be subject to additional VAT and income taxes.

Failure to comply with registration, CIR code display, reporting, or tax remittance requirements can result in substantial fines for hosts. The regulations aim to better monitor and control the growth of short-term rentals in Venice.

City officials have expressed concerns about the impact of short-term rentals on housing availability and affordability for residents and issues of over-tourism in the historic center. Additional restrictions may be implemented in the future as Venice tries to balance the economic benefits of tourism with livability for local citizens.

Required Documents for Venice Short-Term Rentals

To legally operate a short-term rental in Venice, 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. A self-certification declaring the property meets minimum health and safety standards, such as having a working smoke detector, fire extinguisher, and first aid kit.
5. Copies of utility bills to demonstrate the property is fit for habitation, with working electricity, water, and gas.
6. A copy of the property's insurance policy covering short-term rental activity. Many platforms, such as Airbnb, provide some level of host protection insurance.
7. If food and beverages are provided to guests, relevant food safety certifications and documentation may be required.

Once all the necessary documentation is compiled, hosts must register with the city and obtain a CIR code before listing their property for short-term rental. The CIR code serves as proof of registration and must be displayed on all listings and advertisements.

Proper documentation helps ensure short-term rentals meet basic quality and safety standards for guests. It also allows authorities to monitor the growth of short-term rentals and enforce regulations around registration, reporting, taxation, and other requirements.

Failure to provide the required documents or obtain proper registration can result in fines and penalties for hosts. Venice authorities have been increasing enforcement efforts in recent years to combat illegal rentals and ensure compliance with the city's rules.

Venice Short-Term Rental Taxes

Venice has some of Italy's strictest short-term rental regulations and highest tourist taxes. Hosts need to be aware of the following tax obligations:

1. Short-term rentals are subject to a 21% flat tax rate known as the "cedolare secca." Starting in 2024, this rate will increase to 26% for hosts renting out more than one property in Venice.
2. Hosts must collect and remit a tourist tax of €3-5 per person per night for the first 5 nights of a stay. The exact amount depends on the type of accommodation. The guest pays this tax, but the host's responsible for collecting it and remitting it to the city.
3. Interest from short-term rentals must be declared and taxed separately from other income under the cedolare secca regime. Hosts can choose to pay taxes under the ordinary IRPEF progressive tax system instead if that is more advantageous for their situation.
4. Airbnb collects and remits the tourist tax on behalf of hosts for qualifying short-term rentals as of 2024. However, hosts are still responsible for registering their property and providing the required information to Airbnb.
5. Hosts must submit detailed information about each guest, including passport details, to the Alloggiati Web portal within 24 hours of check-in for security reasons. Failure to do so can result in fines.
6. Tax evasion on short-term rental income in Italy is estimated to exceed €1 billion per year. Authorities are cracking down with increased enforcement and regulations.

The complexity of Venice's short-term rental tax rules and steep penalties for non-compliance make it essential for hosts to stay informed of their obligations. The city has taken an aggressive approach to combating illegal rentals and tax evasion in an effort to control overtourism and its impact on housing affordability for residents.

Some real estate investors are shifting their focus from short-term to medium-term rentals of 1-18 months to avoid the more stringent short-stay regulations. However, short-term rentals can still be viable for those committed to hosting responsibly, with careful attention paid to all tax and licensing requirements. Consulting a local tax professional is advisable.

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 overtourism 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 Venice Strictly Enforce STR Rules?

Venice has some of the strictest short-term rental regulations in Italy and actively enforces them. The city is not very Airbnb-friendly compared to other Italian destinations.

Authorities have been cracking down on illegal short-term rentals in recent years with increased inspections and substantial fines for non-compliance. Many Venetians blame Airbnb and over-tourism for driving up housing costs and pushing residents out of the historic center.

While some hosts still attempt to skirt the rules, it is becoming increasingly difficult to operate STRs in Venice without the proper registration and permits. The city has a dedicated task force that monitors short-term rental listings and conducts on-site checks of suspicious properties.

Airbnb has also agreed to share host data with Venice authorities to help identify illegal rentals. Hosts face fines starting at €3000 for renting without a license or failing to register guests. Repeat offenders risk having their properties seized.

So, while it may be possible to operate under the radar for a short time, Venice is actively working to shut down illegal short-term rentals. The consensus on forums like Bigger Pockets and Reddit is that it's not worth the risk in Venice, given the strict enforcement.

Most Venice hosts who continue to operate short-term rentals do so with the proper registration and permits. However, obtaining a license has become increasingly difficult as the city has capped the number of STRs in the historic center and imposed a waiting list for new permits.

The strict regulations have caused some real estate investors to shift their focus to other Italian cities with friendlier STR rules. Others are pivoting to medium-term rentals of 1-18 months, which are not subject to the same restrictions as short-term stays.

Overall, while short-term rentals can still be profitable in Venice for those who obtain the proper licensing, the city is one of the most challenging places to be an Airbnb host in Italy. Enforcement is strict and the trend is toward even tighter regulation of the sector.

How to Start a Short-Term Rental Business in Venice

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

1. Research Venice's short-term rental regulations thoroughly. Venice has some of the strictest rules in Italy, including limits on the number of properties that can be rented short-term in the historic center. 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 historic center are the most desirable for tourists but also face the most restrictions.
3. Register your property with the city and obtain a license. In Venice, you must register with the SUAR (Single Desk for Receptive Activities of the Tourism, Professional Training, and Work Department) and obtain a CIR code, which must be displayed on all listings. You can rent a maximum of 3 properties before additional permits are required.
4. Set up your business entity and get any necessary permits. Decide on the right business structure, whether that's a sole proprietorship or a company. Make sure you have all the required business licenses and permits to operate legally.
5. Prepare your property for guests. Furnish and equip your rental to a high standard to appeal to guests and garner positive reviews. Take professional photos for your listings. Establish your house rules and create a thorough guidebook with local tips.
6. Create listings on booking platforms like Airbnb and Vrbo. Craft an enticing description, use high-quality photos, and set competitive rates. Consider starting with lower prices to initially build up reviews.
7. Establish your guest communication and check-in processes. Decide how you'll handle inquiries, booking confirmations, check-in instructions, and guest issues during their stay. Clear communication is key to being a successful host.
8. Arrange for cleaning and maintenance. You'll need a reliable cleaning service to turnover the property between guests. Establish a process for regular maintenance and dealing with any repairs or issues that arise.
9. Understand your tax obligations. Short-term rental income is taxed at 21% in Italy under the cedolare secca regime. You're also responsible for collecting the tourist tax from guests and remitting it to the city. Keep accurate records of all income and expenses.
10. Consider hiring a property manager. If you don't live locally or want to be hands-off, engaging an experienced property management company in Venice can make running your rental much easier. They'll handle everything from guest communication to cleaning and maintenance.

Starting a short-term rental business in Venice can be rewarding but it's critical to make sure you're in full compliance with the city's regulations. The steep fines for violations and increasing restrictions mean it's essential to do your due diligence and stay on top of any regulatory changes. With careful planning and execution, it's still possible to build a successful rental business in one of the world's most iconic destinations.

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

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

1. City of Venice Tourism Department (Direzione Sviluppo, Promozione della Città e Tutela delle Tradizioni)

Address: San Marco 4136, 30124 Venice, Italy
Phone: +39 041 274 8701
Email: veneziaunica@comune.venezia.it
Website: https://www.comune.venezia.it/it/content/tutte-le-informazioni-i-proprietari-di-alloggi-turistici

2. Venice Unique (Venezia Unica) - The official tourism website of the City of Venice

Address: San Marco 4136, 30124 Venice, Italy
Phone: +39 041 2424
Email: info@veneziaunica.it
Website: https://www.veneziaunica.it/en

3. Metropolitan City of Venice (Città Metropolitana di Venezia)

Address: Via Forte Marghera 191, 30173 Mestre, Italy
Phone: +39 041 250 1111
Email: protocollo.cittametropolitana.ve@pecveneto.it
Website: https://cittametropolitana.ve.it/

4. Veneto Region Tourism Department (Direzione Turismo Regione del Veneto)

Address: Fondamenta Santa Lucia, Cannaregio 23, 30121 Venice, Italy
Phone: +39 041 279 2644
Email: turismo@regione.veneto.it
Website: https://www.regione.veneto.it/web/turismo/

These government offices can provide the most up-to-date and authoritative information on Venice's evolving short-term rental regulations. The city's official tourism site, Venezia Unica, has a dedicated section for owners of tourist accommodations with details on registration requirements, taxes, and more.

It's also advisable to consult with a local lawyer specializing in real estate and tourism law to ensure full compliance. Organizations like the Italian Host Association (Associazione Host Italia) and property manager associations 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 Venice's complex and changing regulatory landscape for short-term rentals. With the city facing over-tourism and housing affordability issues, operators should be prepared for further restrictions on short-term rentals in the future.

What Do Airbnb Hosts in Venice 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 Venice have strong opinions about the increasing regulations on short-term rentals in the city. Here are a few representative viewpoints:

A Reddit user who manages several Airbnb properties in Venice commented that the registration process and ongoing reporting requirements are "a huge hassle" but begrudgingly admits they are "a necessary evil" to combat over-tourism and illegal rentals in the historic center. They note that many hosts try to skirt the rules, which disadvantages compliant operators.

In a thread on Bigger Pockets, a host lamented that Venice's permit caps and limits on the number of properties one can rent short-term have made it very difficult to scale an Airbnb business in the city. They are considering shifting their portfolio to medium-term rentals of 1-18 months to avoid the restrictions.

Another Venice host on Reddit said they welcome tighter regulation as a way to "level the playing field" against hosts operating multiple properties who they feel are running "unofficial hotels" and negatively impacting the character of residential neighborhoods. This host rents out a room in their primary residence and feels that type of small-scale homesharing should be prioritized.

A Bigger Pockets user with one Airbnb in Venice expressed frustration with the "ever-changing" rules and the city's lack of clarity on what is required from hosts. They spend a lot of time trying to ensure compliance but worry about "accidentally missing something" and getting a huge fine.

One host on Reddit admitted they have been "flying under the radar" and not fully complying with Venice's short-term rental regulations because the "costs and hassle" of getting properly registered cut too much into their profits. However, with the city's crackdown on illegal rentals, they are nervous about continuing to operate this way much longer.

The overall sentiment seems to be that while Venice's strict short-term rental regulations can be burdensome and confusing for hosts, most understand the need for oversight given the city's over-tourism issues. Hosts who are operating above board want the city to enforce the rules consistently to eliminate unfair competition from illegal operators. However, some feel the pendulum has swung too far and that the restrictions make it very difficult for individuals to earn extra income by occasionally renting out their homes.

As the city continues to grapple with the right balance, Airbnb hosts in Venice will likely face more changes to the regulatory landscape in the years ahead. Those who can adapt and stay compliant seem best positioned for long-term success in this challenging but appealing market.

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.