New tourist restrictions in Milan: Why student leases are becoming the number one choice for hosts again in 2026

If you are a landlord in Milan in 2026, you have undoubtedly noticed a radical change in the local property landscape. As the Lombard capital prepares to vibrate to the rhythm of the Winter Olympic Games, the tourist buzz hides a far more complex reality for short-term holiday rental hosts. Once considered the goose that laid the golden eggs, the Airbnb-style short-term rental model is today showing its limitations in the face of an increasingly dissuasive legislative and fiscal arsenal.

At Roomlala, we support thousands of landlords daily in managing their properties. We are currently seeing a major trend: the strong comeback of long-term rentals, and specifically student leases. Faced with mounting administrative constraints and skyrocketing taxes, renting to a student is no longer just a supportive choice; it has become the most profitable and secure financial strategy in Italy. An analysis of this transformation of the Milanese property market.

The end of the golden age for short-term rentals in Milan in 2026

An increasingly heavy tax burden for hosts

The year 2026 marks a decisive turning point in Italian fiscal policy regarding short-term rentals. Historically, the cedolare secca (flat-rate tax) scheme offered a highly advantageous single rate for tourist rentals. Today, the situation has changed. The government has implemented a progressive taxation system designed to curb property speculation. From now on, if you rent out a first property on a short-term basis, the cedolare secca remains at 21%. But from the second property onwards, this rate inevitably climbs to 26%.

However, the real fiscal blow comes from the third property onwards. Until recently, a landlord could manage up to five apartments as short-term rentals as an individual. In 2026, the Finance Act drastically lowered this threshold: from the third property rented out on a short-term basis, the activity is automatically reclassified as a commercial activity. This implies the obligation to open a Partita IVA (VAT number), keep business accounts, and pay social security contributions (INPS), which wipes out profitability for the majority of small investors.

This increased tax pressure aims to rebalance the rental market, which is particularly tight in major cities. In Milan, although the municipality has not formally banned the creation of new tourist rentals in its historic centre (unlike the city of Florence, which has taken radical measures), the net is tightening through taxation. For many Milanese landlords, the calculation is quickly made: the net yield of short-term rentals is melting away like snow in the sun in the face of these new levies.

The weight of new European and local administrative constraints

Beyond taxation, it is the administrative labyrinth that is now discouraging hosts. The strict obligation to display the National Identification Code (CIN) on all booking platforms is now under close scrutiny. The absence of this famous CIN on a listing exposes the landlord to massive fines, ranging from 800 to 8,000 euros. Obtaining and maintaining this code also requires compliance with strict safety standards (carbon monoxide detectors, fire extinguishers), adding significant installation and maintenance costs.

Transparency has also become the absolute norm at the European level. Since 20 May 2026, European Regulation 2024/1028 is fully applicable. This directive obliges all rental platforms (Airbnb, Booking, etc.) to share host income and identity data automatically and monthly with the Italian tax authorities (Agenzia delle Entrate). The era of the shadow economy or under-reporting is gone for good, with cross-checks now managed by infallible algorithms.

Finally, the local Milanese context is increasing the bill for travellers, automatically reducing the appeal of short-term rentals. Due to the organisation of the Winter Olympic Games, the city of Milan has significantly increased the tourist tax, which can now reach 9.50 euros per night per person for tourist rentals. This dizzying rise is pushing many travellers to turn to traditional hotels or outlying municipalities, leading to a drop in occupancy rates for hosts within Milan itself.

Student lease: The safe haven for Milanese landlords

The 10% "Cedolare Secca": An unbeatable tax advantage

Faced with this obstacle course, the student lease (contratto per studenti universitari) appears as an oasis of tranquillity and profitability. Designed for durations ranging from 6 to 36 months, this type of contract benefits in 2026 from massive fiscal support from the Italian state. The most spectacular advantage is undoubtedly the application of a cedolare secca reduced to just 10% (compared to 21% or 26% for tourism). This exceptionally low rate allows the landlord to retain a much larger share of their gross rental income.

However, we would like to clarify a crucial point of caution: to benefit from this 10% rate, it is imperative to apply a controlled rent, known as canone concordato. This rent is not set freely by the landlord, but is calculated according to precise scales defined by the territorial agreements of the city of Milan (based on surface area, district, floor, the presence of an elevator, etc.). Although the headline rent is slightly lower than the free market price, the tax savings very largely offset this difference.

Furthermore, signing a student lease offers unparalleled financial predictability. No more stress from last-minute cancellations, winter low seasons, or the time-consuming management of check-ins/check-outs. The landlord secures a fixed and regular income throughout the academic year, while protecting their property from premature wear and tear linked to the constant turnover of tourists.

IMU reduction and advantages for tenants

Tax incentives do not stop at income tax. By opting for a student lease with a controlled rent, Milanese landlords also benefit from an automatic 25% reduction on their local property tax, the IMU (Imposta Municipale Propria). In a city where cadastral values are among the highest in Italy, this discount represents an annual saving of several hundred, if not thousands, of euros, further boosting the net return on the operation.

On the demand side, the market is more dynamic than ever. Milan remains Italy's university capital, attracting tens of thousands of students each year (Politecnico, Bocconi, Statale, etc.). In 2026, the government strengthened aid for these young people: student tenants now benefit from a 19% tax deduction on their rent (capped at approximately 500 euros per year). This measure has a direct effect for you, the landlords: students are extremely keen on legal and registered contracts in order to benefit from this aid.

This synergy of interests creates an extremely healthy rental environment. Students and their guarantors (often parents) seek stability and are prepared to commit seriously, while landlords find reliable, solvent tenants backed by incentive-based tax mechanisms. It is a win-win relationship that secures your property assets.

Practical comparison: Tourist rental vs. Student lease in Milan

To fully understand the impact of these reforms, let us take a practical example. Imagine Marco, the owner of two charming two-room apartments in the sought-after Città Studi district, a stone's throw from the Politecnico. Until 2025, Marco rented his two properties on Airbnb. In 2026, reality caught up with him. On his second apartment, rented for €1,500 gross per month on average, he must now pay 26% in cedolare secca (i.e., €390 in monthly taxes). To this are added cleaning costs, the platform commission (about 15%), and rising rental vacancy due to the €9.50 tourist tax, which scares off budget-conscious travellers.

Marco's net yield on this second property falls painfully to €750 per month, not counting the time spent answering messages, managing key handovers, and ensuring his CIN is compliant. Exhausted by this quasi-hotel management and frightened by the automatic data sharing of the EU 2024/1028 directive, Marco decides to change strategy and rent to students.

By switching to the student lease with canone concordato, Marco's gross rent is capped at €1,100 per month. At first glance, this is a loss. But let's look closer: his tax (cedolare secca) drops to 10%, i.e., only €110. He no longer has cleaning costs, no more astronomical recurring commissions, and benefits from a 25% reduction on his annual IMU. His net monthly income rises back to nearly €990, in a totally passive and legal manner.

Beyond the purely accounting aspect, the gain in quality of life is invaluable. Marco no longer has to worry about customer reviews, washing bed sheets, or complaints from neighbours about noise. He has signed a 12-month contract with two engineering students, whose parents have acted as guarantors. His property is respected, his income is guaranteed, and he is in perfect compliance with the Agenzia delle Entrate.

How to successfully transition to long-term rentals with Roomlala?

At Roomlala, we are convinced that homestays and renting rooms to students represent the future of urban real estate. If you wish to take the plunge and leave behind the hassles of tourist rentals, the first step is to inform yourself about the canone concordato scales applicable to your Milanese neighbourhood. Landlord associations (such as UPPI or Confedilizia) can support you in calculating the exact authorized rent to benefit from the 10% tax rate.

Next, it is about finding the ideal tenant. That is where our platform steps in. Unlike traditional classified ad sites, Roomlala allows you to specifically target a student audience. You can view profiles, chat with candidates and their parents, and verify their guarantees before even arranging a viewing. Our matching system secures your steps and saves you precious time.

Do not forget that you can also opt for renting a room in your own home (homestay). If you have a spare room in your primary residence in Milan, renting it to a student via a transitional lease is an excellent way to generate tax-free supplementary income, while creating social connections. The 10% cedolare secca rules also apply to room rentals, provided that local scales are respected.

In summary, the year 2026 marks a great return to common sense in the Milanese property market. The new regulations should not be seen as a punishment, but as an opportunity to reorganise your assets towards more stability and net profitability. By choosing the student lease, you participate actively in solving the youth housing crisis, while intelligently protecting your financial interests. Do not wait any longer to publish your listing on Roomlala and find your future tenants for the start of the academic year!