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    Short-term rentals in Italy: the case of the Municipality of Florence and the potential replication by other cities

    Team_NewsStudyBy Team_NewsStudyMay 20, 2025 Travel No Comments3 Mins Read
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    Selecting to spend money on actual property means taking a step that may be life-changing from a monetary stability perspective. Among the many many choices to contemplate, shopping for houses in Italy all the time has its attraction, because the nation has lengthy fascinated each vacationers and people searching for a spot to relocate, wealthy in magnificence and human-scale residing.

    When approaching the Italian actual property market, it’s vital to concentrate on the central function that short-term leases play—now a structural alternative for these seeking to monetize their properties.

    After years of adjustments within the sector—as demonstrated by the requirement to acquire and show the CIN, the nationwide identification code—new guidelines could quickly be on the horizon.

    The highlight has just lately turned to the Municipality of Florence, which has launched particular restrictions on short-term leases within the historic metropolis middle.

    A possible turning level for different Italian cities

    In latest days, the Municipality of Florence—after appreciable controversy—handed a regulation that introduces an actual crackdown on short-term leases, significantly within the metropolis’s historic middle.

    This contains fines of as much as €10,000 for non-compliant properties and a minimal dimension requirement of 28 sqm for houses used for short-term vacationer leases.

    The act permitted by the Florentine metropolis council additionally establishes a freeze on new short-term rental permits within the UNESCO World Heritage space of the town.

    In keeping with consultants, this might change into a mannequin quickly replicated by different cities—particularly massive city facilities like Milan, Rome and Bologna—the place the growth in short-term vacationer leases is severely affecting conventional leases, negatively impacting housing accessibility for a broad phase of the inhabitants typically going through monetary difficulties.

    As talked about, the laws in Florence have sparked controversy, however not all the brand new guidelines may be thought-about penalizing for property house owners. One instance? The minimal dimension requirement to hire a property has elevated from 20 sqm (the nationwide commonplace) to 28 sqm.

    That is undeniably a constructive side for these with a restricted funds who, when evaluating which property to purchase in Italy, are drawn to studio residences.

    One other noteworthy change is the requirement to register within the tourism rental register to function legally within the short-term rental market. This permits property house owners to acquire a license that’s legitimate for 5 years and is voided upon the sale of the property.

    Sanctions

    The case of the Municipality of Florence can be making headlines relating to the way it handles short-term leases as a result of penalties imposed on violators.

    These are important fines, starting from €1,000 to €10,000 per property present in violation—among the many offenses are undeclared employment, which ends up in instant revocation of the rental license. Inspections could happen each on-site and on-line, utilizing knowledge out there on reserving platforms.

    In case of irregularities, each the property proprietor and the rental supervisor are collectively liable.

    Earlier than diving into the short-term rental market in Italy, it’s important to rigorously analyze these laws and, above all, select properly the place to purchase.

    In main cities like Rome, not all neighborhoods are appropriate for short-term leases—as evidenced by the drop in listings in Rome from January 2024 to February 2025 (-8.5%).



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