Presumption of entrepreneurship in short leases

From 2021, the short-term lease business is assumed to be carried out in an entrepreneurial manner if the lessor allocates more than four apartments for this purpose for each tax period.

With paragraphs 595 – 596 of Article 1 of the Budget Law 2021, the legislator has established the threshold beyond which income from short rent must be considered achieved under the company.

The new regulation provides that, starting from the fiscal year 2021, the rental of more than four properties in the short-lease form constitutes a business activity pursuant to Article 2082 of the Civil Code, and it will not be possible to take advantage of the flat rate tax regime (so called “cedolare secca”).

According to the new provision, entrepreneurship is assumed only with reference to short leases and subleases (i.e. leasing of residential properties for a duration not exceeding 30 days, between individuals who do not act in business), while with reference to ordinary and tourist leases the entrepreneurship criteria will follow the ordinary rules.