With the summer come the questions from owners of a second apartment in Milan: is it worth letting it for short stays? After the Olympics and with the 2026 tax changes, it is worth redoing the sums calmly.
The rules, today
- 21%
- flat tax on a single property, chosen by the owner
- 26%
- from the second property onwards
- 3
- apartments beyond which it becomes a business
From 1 January the 21 per cent flat tax applies to one apartment only; on the others it rises to 26. Those letting three or more apartments for short stays are treated as a business, with a VAT number and different rules. Every listing must show the national identification code (CIN), and the penalty for not displaying it is significant. In Milan there is also the tourist tax, to be collected and paid to the city.
The real numbers
A short let earns more, but it also costs more. Before deciding, consider:
- Real occupancy: Milan lives on events and fairs, but it also has slow months, August first of all.
- Management: cleaning, linen, check-in, maintenance, platform fees. With a professional manager, often 20 to 30 per cent of revenue.
- Wear: furniture and finishes age faster.
- The condominium: some building rules limit or forbid hospitality use. It must be checked first.
A short let is not an annuity: it is a small hotel. It must be run as one.
The alternative often forgotten
In Milan there is solid demand for rentals of a few months: managers on assignment, professors, doctors, families waiting to find a home. Transitional contracts, from one to eighteen months, allow attractive rents with far less management. For a well-furnished apartment in a central area they are often the most balanced solution.
When short lets make sense
They make sense for apartments in central areas or near the trade-fair districts, with an owner willing to look after them or to pay someone who does it well. They make less sense for high-end homes, where wear and guest turnover risk eroding exactly what gives them their value.
Before choosing, my advice is simple: run two sets of numbers, one optimistic and one cautious. If the operation holds up in the second, you can go ahead.
Real estate advisor · Milan