2027 Italian Budget Law: Taxation and New Regulations for Homestays

In this month of September 2026, Italy is buzzing with political and economic activity. As the government finalises the details of the 2027 Italy Budget Law, many landlords are asking legitimate questions about the future of their property investments. If you have a vacant room and are considering offering it for rent, or if you are already an active host, these new tax measures affect you directly. Faced with a housing crisis that is particularly affecting large university cities, public authorities are trying to find a balance between tax incentives for landlords and financial support for tenants. At Roomlala, we are closely following these legislative developments to support you as best we can. In this comprehensive article, we will decode the working hypotheses of this new finance law together, analyse the adjustments planned for the famous cedolare secca, and give you all the keys to optimise your landlord taxation in Italy while renting with complete peace of mind.

Understanding the 2027 Italy Budget Law and the property market

A context of student and young professional housing crisis

For several years now, Italy has been facing unprecedented housing pressure, particularly in major cities like Milan, Rome, Bologna, or Florence. Students known as fuorisede (who study far from their family home) and young workers are struggling to find affordable housing. It is in this tense context that the discussions surrounding the 2027 Italy Budget Law are taking place. The government has clearly understood that to ease the market, it is essential to encourage landlords to open their doors and offer long-term leases, rather than leaving their properties vacant or turning exclusively to short-term tourist rentals.

See also: Transitional lease agreement in Italy: Essential rules for renting a room in 2026, Tax deduction for 'fuorisede' students: Reducing the cost of your room in Italy in 2026 and Back to school 2026 in Italy: The benefits of the Canone Concordato for renting out your room

At Roomlala, we observe this strong demand daily. Every day, thousands of young people look for an Italy room rental to pursue their studies or start their career. The 2027 Finance Law, currently being drafted and subject to budget validation this autumn, aims precisely to target tax relief to boost this sector. This is a major societal issue: housing the youth while ensuring fair and secure profitability for landlords who agree to engage in residential renting.

Let's take a concrete example: if you own a large flat in Turin and your children have left the nest, renting out one or two rooms to students is not only a significant source of additional income but also a supportive action. The measures discussed for 2027 seek to sustain this model by offering a clear and advantageous tax framework, thereby preventing the tax burden from discouraging private initiatives.

The government's main directions for autumn 2026

At present, the text of the 2027 Italy Budget Law is not yet final. The information we have, from reliable sources such as Il Sole 24 Ore or the Agenzia delle Entrate, consists of serious working hypotheses. The common thread of this budgetary manoeuvre is the fight against property vacancy and the revitalisation of city centres. Discussions are focusing on targeted mechanisms, as the state's financial resources require precise strategic choices.

One of the major directions is to maintain gains for the residential sector while innovating on other fronts. For example, the government wishes to stimulate the overall rental supply by also tackling empty commercial premises, while proposing unprecedented incentives for property professionals who commit to housing young people. For you, as private landlords, the main goal of this law will be to stabilise your current tax benefits, while potentially simplifying reporting procedures.

We advise you to remain attentive to the announcements in autumn 2026. Although the broad outlines have been drawn, the exact percentages and eligibility conditions may still be subject to amendments in Parliament. However, the trend is clear: landlord taxation in Italy is moving towards rationalisation to reward those who contribute to solving the student and young professional housing crisis.

Cedolare secca 2027: What changes (and what stays) for room rental in Italy

Maintaining the cedolare secca at 10% for students

This is the question on the lips of all our hosts: what about the 2027 cedolare secca? As a reminder, the cedolare secca is an optional flat-rate tax that replaces the IRPEF (personal income tax) as well as registration and stamp duties on rental contracts. This system helps avoid double taxation and benefits from a fixed rate, independent of your other income. The good news from the current discussions is that for student housing, the goal is to maintain this exceptional tax benefit.

Indeed, if you rent a room to a student in a university city (or a neighbouring municipality) with a rent-controlled contract (canone concordato), you can continue to benefit from a reduced rate of 10%. This is an absolute boon for Italy room rental. The government is aware that removing this benefit would cause an immediate increase in rents, which would run counter to its objectives. This 10% rate is a powerful lever to convince landlords to rent at reasonable prices.

Let's imagine the case of Maria, a landlord in Bologna. She rents a room to an engineering student for 400 euros per month. By opting for the ordinary IRPEF regime, her rental income would be added to her salary, pushing her into a high tax bracket (potentially 35% or more). Thanks to the 10% cedolare secca, she only pays 40 euros of tax per month on this rent, with no nasty surprises at the end of the year. At Roomlala, we strongly encourage you to check with your municipality to establish these specific contracts and maximise your income.

The extension of the flat-rate tax to commercial premises (21%)

While stability is the order of the day for student rooms, the real novelty discussed for the 2027 cedolare secca concerns the commercial sector. The draft law plans to extend this flat-rate tax to shop and office rentals, with a rate set at 21%. The stated objective is to fight against the proliferation of empty storefronts in Italian city centres, a phenomenon that degrades the local economic and social fabric.

Although this measure does not directly affect Italy shared housing or homestays, it is rich in lessons about the government's tax philosophy. By applying the cedolare secca to businesses, the state confirms the effectiveness of this tool in stimulating the property market. This strengthens the legitimacy of the scheme as a whole and secures its long-term existence for the residential sector.

For a diversified investor, this novelty is crucial. If you own both a flat that you rent out by the room via Roomlala (benefiting from the 10%) and a small commercial space on the ground floor, the 2027 Finance Law could considerably lighten your overall mental and tax burden. The management of your assets will be simplified, with a clear and predictable tax system for all your properties.

Landlord taxation in Italy: New incentives and reduced VAT

The proposal for a 5% VAT for professionals

Another flagship measure debated within the framework of the 2027 Italy Budget Law specifically concerns housing for young workers and students (those under 35/36). Faced with the scale of demand, the government is considering introducing a reduced 5% VAT on rentals managed by property or construction companies. Currently, these operations are often subject to standard VAT rates or are exempt but without the right to deduction, which slows down the construction of private student residences.

This proposal aims to encourage developers to invest massively in coliving and residences for young professionals. By reducing VAT, the state hopes to lower the final cost of these homes. But what does this mean for you, as private landlords? At Roomlala, we analyse this measure not as a threat, but as a healthy structuring of the market. Professional supply will increase, but it will often target an audience ready to pay for additional services (gyms, integrated coworking).

Your Italy room rental offer as a homestay will always retain its major asset: authenticity, human warmth, and a generally more accessible cost. Moreover, competition from these new professional players highlights the importance of maintaining strong tax benefits for individuals (like the cedolare secca), in order not to unbalance the market to the detriment of small landlords who form the historical bedrock of student housing in Italy.

Optimising your rental income as an individual

As an individual, landlord taxation in Italy offers many opportunities for optimisation, provided you are well-informed. Besides the crucial choice of the tax regime (classic IRPEF or cedolare secca), it is important to take into account other local taxes, such as the IMU (Imposta Municipale Unica). Did you know that in many municipalities, renting your property with a rent-controlled contract (canone concordato) entitles you to a 25% reduction on the IMU?

To optimise your income with Roomlala, we recommend that you plan your rental strategy. For example, if you rent a room for periods of 10 to 12 months to students, you ensure financial stability while benefiting from the best tax rates. It is essential to always draw up a contract in due form and register it with the Agenzia delle Entrate. This step, often perceived as tedious, is actually your best legal protection and the key to unlocking all your tax benefits.

Let's take the case of Roberto, who rents out two rooms in his Roman apartment. By scrupulously registering his Italy shared housing contracts and opting for the cedolare secca, he has protected himself from tax reassessments while maximising his net yield. Furthermore, a registered contract is essential for your tenants to be able, for their part, to benefit from financial aid, which makes your rooms much more attractive on the market.

Italy shared housing and benefits for tenants: The Bonus Affitto

Tax deductions for those under 36

A successful rental is based on a balance between a landlord satisfied with their profitability and a tenant who manages to cover their rent. The 2027 Italy Budget Law does not only look at landlord taxation in Italy; it also confirms support mechanisms for young people. Young tenants and non-resident students (fuorisede) continue to benefit from significant tax deductions, often grouped under the name Bonus affitto.

These deductions, subject to income caps, allow young people under 36 to deduct part of their rent from their own taxes (or those of their parents if they are still attached to their tax household). For a student, this aid can represent several hundred euros in savings per year. This is a significant argument when you offer a room on Roomlala: by providing a legal and registered contract, you indirectly offer additional purchasing power to your tenant.

Let's take the example of Giulia, 22, who is leaving Puglia to come and study in Milan. Her budget is tight. By choosing a room with a landlord who agrees to sign a regular canone concordato contract, she ensures a moderate rent and the possibility of benefiting from the Bonus affitto. For their part, the landlord secures a solvent and serious tenant, while benefiting from the 2027 cedolare secca at 10%. It is a true win-win partnership that successive finance laws are trying to consolidate.

How Roomlala secures your rental contracts

Faced with the complexity of tax laws and the announcements of the 2027 Italy Budget Law, it is normal to feel some apprehension. This is where Roomlala comes in. Our platform is not just a connecting tool; it is a trusted third party designed to secure every step of your Italy shared housing or homestay room rental project.

At Roomlala, we provide you with a secure framework. From the moment you book online, payments are protected. We strongly encourage you to formalise the rental with a written contract, an essential step to be in compliance with the Agenzia delle Entrate. Although we do not provide personalised tax advice (as every individual's financial situation is unique), our platform allows you to generate receipts and keep a clear record of all your transactions, thus greatly facilitating your annual tax return.

In conclusion, the discussions surrounding the 2027 budget show a clear willingness on the part of the Italian state to support the rental market. By staying informed and using secure platforms like Roomlala, you have all the cards in hand to transform this period of legislative change into a sustainable and profitable opportunity. Don't wait any longer to make the most of your free space and welcome the world into your home, while benefiting from the best possible tax conditions!