Article 4, paragraph 5-bis, of Law Decree 50/2017, as amended by the 2024 Budget Law, requires platforms like Vrbo to apply a 21% income tax withholding rate on non-professional hosts’ earnings from short-term rental stays in Italy.

From June 2025, Vrbo will withhold 21% in taxes from payouts to non-professional hosts for short-term stays only (30 days or less). If withholding will apply to you based on information that you have provided to Vrbo, we’ll remit those taxes on your behalf to the Agenzia delle Entrate.

Frequently asked questions (FAQs)

 

Which hosts are subject to withholding?

Income tax withholding applies to hosts that meet all the following criteria:

  • Registered on the Vrbo platform as an individual owner
  • Has not provided a value-added tax (VAT) ID
  • Has four or fewer vacation rental properties in Italy that are listed on Vrbo sites
  • Self-identified as a “Private” host for European Union (EU) regulatory purposes

For example, you would be subject to withholding if you host on Vrbo as an individual, aren’t VAT registered, and have two vacation rental properties listed in Italy.

Which hosts are not subject to withholding?

Income tax will not be withheld for hosts that meet any the following criteria:

  • Registered on the Vrbo platform as a property manager
  • Provided a VAT ID
  • Has five or more vacation rental properties in Italy that are listed on Vrbo sites
  • Self-identified as a “Professional” host for EU regulatory purposes

For example, the following hosts would not be subject to withholding:

  • A property manager with four vacation rental properties listed in Italy.
  • A VAT-registered host with two vacation rental properties in Italy.

What bookings are subject to withholding?

Withholding applies only to short-term stays of 30 days or less. Long-term stays (over 30 days) are exempt from withholding.

If a payout includes both short- and long-term bookings, withholding will only apply to the short-term bookings.

How can I help make sure my withholding is applied correctly?

Withholding is applied based on information that you have provided to Vrbo and the length of each reservation. To make sure the Italian withholding tax is correctly applied to your payments, you can verify the following information in your Vrbo account:

  • Let us know if you’re a “Private” or “Professional” host.
  • If you’re VAT registered, you can add a VAT ID for each of your properties and your Vrbo account with the following steps:
    1. Log in to your account.
    2. If you have more than one property, select your listing in the Owner's Dashboard.
    3. Select Local laws.
    4. Select Update regulatory requirements.
    5. For "Do you have a VAT or GST (Goods and Services Tax) number?" select Yes.
    6. Enter your VAT or GST number.
    7. Select Submit.
    8. Repeat this process for all properties.
    9. To update your VAT ID at the account level, add your VAT ID in your Account Settings.
  • Ensure your reservation durations are accurately reflected: withholding applies only to short-term stays (30 days or less).

Important: You should also ensure that the information provided to Vrbo is consistent with any representations made to the relevant Italian authorities.

What other information is needed from me?

To receive an annual “Certificazione Unica,” provide an Italian income tax identification number (TIN) in your Local laws dashboard. If you don’t provide a TIN, Vrbo will not be able to issue a Certificazione Unica for you to claim the withholding tax on your income tax filing.

Note: A Tax Identification Number is different than a VAT number.

You can update your Italian TIN with the following steps: 

  1. Log in to your owner dashboard.
  2. In the side menu, select Local Laws.
  3. Select Update regulatory information.
  4. Complete the requested information and submit.
  5. Repeat this process for all properties.

I noticed my payments are being withheld on, but I don’t agree they should be subject to withholding. What can I do to update my withholding status?

  • Let us know if you’re a “Private” or “Professional” host.
  • If you’re VAT registered, you can add a VAT ID for each of your properties and your Vrbo account with the following steps:
    1. Log in to your account.
    2. If you have more than one property, select your listing in the Owner's Dashboard.
    3. Select Local laws.
    4. Select Update regulatory requirements.
    5. For "Do you have a VAT or GST (Goods and Services Tax) number?" select Yes.
    6. Enter your VAT or GST number.
    7. Select Submit.
    8. Repeat this process for all properties.
    9. To update your VAT ID at the account level, add your VAT ID in your Account Settings.
  • Ensure your reservation durations are accurately reflected: withholding applies only to short-term stays (30 days or less). If you believe withholding was applied to a long-term stay, use the Contact Us button at the end of this page to connect with our host support team.

I have two properties listed in Italy, with ten properties in total listed on Vrbo. Would withholding apply to me?

Yes. You have less than five listed vacation rental properties in Italy, so you are subject to withholding. However, withholding will only apply to short-term stays of 30 days or less. Long-term stays are exempt.

My payments were being withheld on, but I have updated my account information and withholding has stopped. Can I get the withheld amount back?

No, withholding tax is based on the information you provided to Vrbo at the time of payment. Updating your account information will impact withholding tax on a go-forward basis but we will not refund previously withheld taxes based on new information. You can claim a credit for taxes withheld during the year on your annual Italian income tax return.