Tag: lng_12.4829321

A Guide to Being an Airbnb Host in Italy in 2023: Airbnb Rules + Top 10 Profitable Areas for Airbnb

Post author By Robyn Peña
Post date March 1, 2023

Airbnb host Italy

Italy is undoubtedly one of the remarkable countries that complete the beauty of Europe. Its world-renowned attractions, classic architecture, and renaissance art have always attracted tourists from across the globe.

Apart from this, Italy’s top economy makes it an ideal country to start successful property investments. Let’s not forget that it’s also known for being the 8th largest economy and the 31st richest country as confirmed by World Data.

But let’s discuss the legality of Airbnb in Italy – is it allowed? What are the local rules and regulations, and which are the most recommended areas?

In this article, we’ll answer all of these questions. Bonus: We included the most profitable areas for property investors! Continue reading to learn more.

Is Property Investment Worth it in Italy?

Starting an investment property in Italy opens the possibility of owning a vacation home. At the same time, it can also be turned into a rental for passive income.

Airbtics confirms that property investment is worth it in Italy. There are several undervalued properties that can grow into blossoming investments. For instance, an average host can expect annual revenue of €19,962 in Pisa, Tuscany. And this is for hosting a 1-bedroom property alone!

At the same time, Italy’s transaction costs are not expensive compared to other European countries. Not to mention how the interest rate on properties is generally low, which makes the country a property investment worth it.

By the way – If you are considering an Airbnb in Italy, take a look on our Airbnb market research dashboard to see if it has good occupancy rate or not. It’s free.

What are the Airbnb regulations in Italy?

The good news is that if you’re wondering, “is Airbnb legal in Italy?” – yes it is! According to a guide for starting an Airbnb in Italy, here is the step-by-step process for Airbnb rules Italy:

Visit your local police headquarters and request access to Allogiati Web
Prepare a written contract for your guests to sign at check-in
Submit images of your guests’ passports or national identification to Allogiati Web
Prepare a written short-term rental contract for rentals less than 30 days
Complete and submit an SCIA (Segnalazione Certificata di Inizio Attività) at Impresa Giorno website
Request permission from your town or city council for short-term rent
Verify your permission through the Turismo5 online portal to receive your CIR code
Display your CIR code on all listings and advertisements for your short-term rental

Note: These rules may vary according to your local city’s laws. For instance, Airbnb rules in Florence have a 90-day annual limit for short-term rentals. While Airbnb rules in Rome are not specific with limits, they require obtaining a CIR code.

Are Foreigners Eligible for Property Investment in Italy?

Foreigners are definitely eligible to purchase a property investment in Italy. Immigrant Invest even guarantees that there are no restrictions on sale or rent! Buying a property in Italy is doable, whatever your nationality is.

Check out the three easy steps for foreigners who want to invest in a property in Italy:

Submit a written bid and fill out the form “Proposta d’acquisto” to formally communicate your bid price and pay a deposit or down payment.
Sign a preliminary contract as required by the city hall. The preliminary contract is also known as the compromesso. This refers to a written and stamped document registered in the Land Registry.
The last step is to undergo the conveyance or “Rogito”. This is a process where legal ownership is transferred.
Tips for easy approval: You can seek a local attorney’s legal advice in order to gain insights and techniques for easy approval. At the same time, joining local online forums such as Bigger Pockets can certainly help to learn about others’ experiences. It’s also an option to visit the local city hall to get a clearer overview of the process, but it can be a challenge if the locals can’t speak English fluently.

Top 10 Profitable Airbnb Cities in Italy

So let’s get down to it. Here are the profitable areas to do Airbnb in Italy:

1. Rome

Average sale price (1-bedroom property): €1,575
Airbnb annual revenue: €38,355
Average Daily Rate: €111
Occupancy Rate: 89%

2. Positano

Average rent price (1-bedroom property): €1,550
Airbnb annual revenue: €85,629
Average Daily Rate: €394
Occupancy Rate: 65%

3. Capri

Average rent price (1-bedroom property): €1,450
Airbnb annual revenue: €49,076
Average Daily Rate: €289
Occupancy Rate: 46%

4. Sorrento

Average rent price (1-bedroom property): €1,600
Airbnb annual revenue: €41,473
Average Daily Rate: €169
Occupancy Rate: 63%

5. Venice

Average rent price (1-bedroom property): €1,638
Airbnb annual revenue: €43,367
Average Daily Rate: €146
Occupancy Rate: 77%

6. Sicily

Average rent price (1-bedroom property): €1,139
Airbnb annual revenue: €10,416
Average Daily Rate: €76
Occupancy Rate: 35%

7. Amalfi

Average rent price (1-bedroom property): €800
Airbnb annual revenue: €38,373
Average Daily Rate: €157
Occupancy Rate: 60%

8. Milan

Average rent price (1-bedroom property): €1,500
Airbnb annual revenue: €28,770
Average Daily Rate: €109
Occupancy Rate: 80%

9. Florence

Average rent price (1-bedroom property): €1,200
Airbnb annual revenue: €34,350
Average Daily Rate: €111
Occupancy Rate: 81%

10. Tuscany

Average rent price (1-bedroom property): €1,156
Airbnb annual revenue: €25,546
Average Daily Rate: €107
Occupancy Rate: 67%

Conclusion

There are several property investments in Italy that one can easily discover. However, not all of them can guarantee long-term profitability. Real estate investment in Italy requires thorough analysis and research. This is where a short-term rental analytics tool becomes helpful! And if you’re not keen enough about investing in Italy, you can check other markets, such as the best places for Airbnb in the UK.

You can leverage your game and make informed decisions about property investment before spending all the hard-earned money. Using an Airbnb profit calculator, you can easily understand the market that you want to target – anywhere in the world.

Tags Airbnb Investments, lat_41.8933203, lng_12.4829321

Guides

The Ultimate Guide to Buying an Investment Property in Italy

Post author By Robyn Peña
Post date July 6, 2022

Purchasing a property investment in Italy is a complex task and it requires a lot of analysis. In this article, we’ll feature the various kinds of mortgages in Italy, upfront & ongoing costs of investment property, taxes, and other fees that you should consider. Learn how you can strategize property investment in Italy & make an informed decision!

Fixed rate

Provides the same interest rate for the entire duration of the loan. The rate is established during the signing of the contract and is calculated on the basis of the Eurirs European reference rate (also known as IRS: Interest Rate Swap), which is disseminated daily by the European Banking Federation.

Variable rate

Refers to an interest rate that varies, therefore increases or decreases, based on the trend of the Euribor. The reference interbank rate for this type of loan is fixed by the European Banking Federation.

Mixed rate

This type of mortgage is a flexible choice of interest rate that depends on the conditions agreed upon at the signing of the loan. It is possible to decide whether you can start with a fixed rate and then change it to a variable one or vice versa. The installment amount will be based on the fixed rate period which generally ranges from 2 – 5 years. This type of loan offers the borrower the possibility to change the rate once or more times during the course of the contract.

Constant variable rate installment

This type of mortgage allows you to choose a variable rate without affecting the amount of the installment which will remain fixed for the entire time of the contract, but the duration of the contract can be changed.

How to apply for a mortgage in Italy?

The process of choosing and obtaining a mortgage in Italy can seem complex and obscure. Here are some of the requirements that you will need:

1. Mortgage Application

Once you have selected your preferred bank, all parts of the loan application must be completed as precisely as possible. The mortgage application, prepared in the form of a questionnaire, usually contains standard information. This includes the following:

Personal data of the applicant or applicants for the loan
Complete address – indicate whether your current home is rented, owned or with third parties
Personal data of family members or dependents
Current occupation (if an employee: a certificate of employment, monthly net income, and annual net income documents should be declared)

2. The Preliminary Feasibility opinion

The data and requests contained in the application allow the bank to express an initial feasibility opinion on the loan transaction. The feasibility of the operation, and therefore the granting of the requested sum, generally depends on the contribution of several elements including:

The net income of the applicant and his family members (family unit) derived from the tax return
The value of the property subject to the loan
Technical / legal suitability of the property to be sold
Presence of additional guarantees given by third parties

Once all the data above have been presented, the bank will be able to express its own “feasibility opinion;” which, if positive, starts the next phase consisting in requesting documentation.

How do Italian mortgages work?

As of April 2022, Italy’s bank lending rate is at 1.2%.
A fixed rate mortgage in Italy reaches cost levels of between 2.5% and 2.8%

In addition to this, you can easily calculate how much the approximate monthly payment for your mortgage is using an online mortgage calculator in Italy.

Costs of Investment Property

Now that you have familiarized yourself with the kinds of mortgages, the next step is to learn more about the costs of investment! The current average price of houses on the market is €2,848 per square meter.

As of June 2022, the asking price for rental properties was the highest in the Lombardia region, with €15,300 per month per square meter. The lowest average asking prices instead, were in the Umbria region, with only €6,810 per month per square meter, the lowest value nationally. Here is a summary breakdown of the entire costs that you will need to consider in order to invest in Italy:

Average Property Prices in Abruzzo
For sale (per square meter)	For rent (per square meter)
€1,292	€7,79
Average Property Prices in Liguria
For sale (per square meter)	For rent (per square meter)
€2,522	€10,03

Source: Immobiliare Italy

Relatively, residential rental properties in Italy increased 5.93% compared to June 2021 (€11,30 monthly per square meter). Over the past 2 years, the average price in Italy has reached its peak in the month of June 2022, with a value of €11,97 per square meter.

UPFRONT COSTS:

1. Agency Fees

The standard agency fee in Italy is 3% of the purchase price plus VAT (currently 22%). The real estate agent must register your purchase contract with a registration fee of €200,00 plus a registration tax of 0,5% on the warranty down payments (or deposits) and tax stamps which are a minimum of €32,00.

The registration tax will be deducted from the registration tax on the final deed.

2. Notary Fees

The cost of the Notary is borne by the buyer and is a state-controlled fee for their services to oversee registering the public contract of your house purchase. The Notary costs between €1500 – €3000 depending on the cost of your house.

3. IVA (Value Added Tax)

All the above services are subject to IVA (VAT or Sales Tax) currently charged at 22%.

4. Geometra Survey (Conveyancing Fees)

Geometra is paid by you to check both the legal and structural state of the house. The structural part of Geometra’s survey is very basic. If you require a full building survey then this would be an extra fee, paid to a licensed structural engineer or the Geometra.

The price for this kind of structural survey is typically between €500–700, but could be more so it always good to get a quote. The Geometra then writes the preliminary contract and does the conveyancing.

ONGOING COSTS:

1. IMU Municipal Property Tax (Imposta Municipale)

You only have to pay this Italian tax if your house is a second home, rather than your main residence. It is calculated at 7.6% of the cadastral land value of the property, although it can be slightly more or less depending on the specific region you live in.

2. TASI Indivisible Services Tax (Tassa sui Servizi Indivisibili)

This tax is a kind of council tax levied on public services such as street lighting and road maintenance, but you don’t have to pay if your house in Italy is your main residence.

If you rent it out on a long-term basis, you have to pay 70–90% of it, while the rest is paid by the tenant, but if you let it for short periods as a holiday rental, you are responsible for the whole tax. It is worked out as between 1% and 3.3% of the property’s cadastral value, depending on the municipality it’s in.

3. Home insurance

For a house in Italy as with anywhere else, it’s always advisable to have home and contents insurance. The rates charged by Italian insurance providers are usually about €180 – €380 yearly, depending on the features of your house.

What is a good cash return/net rental yield?

You can generate good cash flow from your residential investment property by either renting out long-term or short-term. Looking into a more detailed guide for property investment in Italy can definitely help you decide which path you should take.

For the long-term rental, you’ll rent out your property for a minimum of 12 months. There’s very little maintenance to do and you’ll need to visit the property on a quarterly basis to do inspections & other similar errands.

However, if you are after high return investments such as over 10% net rental income, running a short-term rental is what you need to consider. By doing short-term rental, you need to target somewhere between 10 – 25% net rental yield, and 20-50% cash return during the first year.

Airbtics is designed to showcase accurate data for simulating cash returns using the ultimate Airbnb Calculator. Choose to stand out among your competitors & try Airbtics!

Tags lat_41.8933203, lng_12.4829321

Airbnb Rules All About Airbnb

Rome Airbnb Rules

Post author By Robyn Peña
Post date July 5, 2022

Table of Contents

Add a header to begin generating the table of contents

Is Airbnb legal in Rome?

Don’t worry, Airbnb is legal in Rome! This city is famous for the Colosseum, the Roman Forum, and a sprawling metropolis of Classical architecture. But the city of Rome is known for more than its ancient history: it is home to the Spanish Steps, the Trevi Fountain, incredible food, gardens and art, and a world-famous film industry.

Currently, there are 15551 Airbnb listings in Rome, with 49% of entire houses earning up to €2,146 a month, 34% managed by professionals, and 66% managed independently. Apart from complete houses, Rome’s Airbnb offerings include 31% of private rooms and 16% of apartments(condos). Average Occupancy Rates in Rome is 45% and average daily rate is €128. According to vacation rental property data source Airbtics, a 2-bedroom apartment in Rome can make up to €29,784 each year.

Short-term rental policy in Rome

– Register online at SUAR of the city of Rome

– Obtain your CIR code from the Latium region

– Email the region with your CIR code to submit tourist flux numbers

– No agreement with Airbnb tax regulation, so hosts must remit the city’s tourism tax on their own

Italy’s General Legislations

In order to offer a short-term rental anywhere in Italy, you’ll need to:

‣ Visit your local police headquarters and request access to Allogiati Web

‣ Prepare a written contract for your guests to sign at check-in

‣ Submit images of your guests’ passports or national identification to Allogiati Web

Short-term rental policy in Italy

– Required to prepare a written short-term rental contract for rentals less than 30 days

– Complete and submit an SCIA (Segnalazione Certificata di Inizio Attività) at Impresa Giorno website

– Request permission from your town or city council to short-term rent

– Verify your permission through the Turismo5 online portal to receive your CIR code

– Display your CIR code on all listings and advertisements for your short-term rental

Pros and Cons of running Airbnb

Short-term rentals are vacation rental properties rented out on a short-term basis to guests, like hotels. This form of rental helps guests to feel more at ease and “at home” because the properties are typically designed in this manner.

A long-term rental is the most common sort of rental property utilized for residential purposes. This sort of rental property is usually protected by a long-term lease agreement with more binding terms than a short-term rental. Renting out their homes for a higher price than their mortgage allows them to generate regular income regardless of the market. Because it is more traditional and well-known, most people are more familiar with this sort of rental property.

Now that we’ve defined vacation rentals and long-term rental properties, let’s look at each component of rental properties that explains both the benefits and drawbacks of a short-term or long-term rental.

Pros

1. Flexibility – You have the option of renting for days, weeks, or months. You can rent as much or as little as you want. There’s also the possibility of going on a trip at any time and earning money while doing so!

2. Privacy – Short-Term Rentals are ideal for families. They provide guests with more privacy and space than standard hotels.

3. Earns more money than a long-term rental – It’s simple to calculate: €1500 for a vacation week vs. €1500 per month to rent for a year.

4. Good Deductions – There are numerous popular deductions available to rental property owners. Cleaning and maintenance, insurance, management fees, and utilities are just a few of the costs to consider. You may make a loss and avoid paying taxes entirely if you take enough deductions.

5. Tax Breaks – Short-Term Rental Owners receive the best home-related tax breaks.

6. Less Wear and Tear on the Property – With frequent renters, you can keep up with tiny repairs before they become major issues!

7. Social Advantages – There are a lot of interesting people in the world, and many of them travel! Your next acquaintances in a Short-Term Rental could evolve into lifelong buddies!

Cons

1. Inconsistent payments – If you rely on a stable income, a yearly renter is a much safer option. There’s a chance you won’t have a Short-Term Renter for weeks or months.

2. Must cover the utilities – Utility costs are usually paid by long-term renters. Short-term tenants don’t.

3. Increased risk – There is a higher danger of theft, breakage, or problem tenants because of the number of tourists going through your doors.

4. Requires extra effort – Running a Short Term Rental requires more effort because you are the innkeeper. You’ll be in charge of collecting money, scheduling clients, and bringing in tenants. You’ll do it every week instead of every 5 years or so!

5. Additional maintenance expenses – As the landlord, you are responsible for housekeeping, pool maintenance, and general upkeep. Not always the case with a long-term renter.

6. Some HOA – Managed neighborhoods make it tough and complicated to rent short-term Rentals. People prefer comfortable, peaceful surroundings where they feel safe and know everyone, rather than random strangers coming and going at all hours. They may submit complaints, and some HOAs may sue Short-Term Rental Owners.

Conclusion

If you’ve made it this far, you’re thinking of starting an Airbnb.

We’ve been assisting folks like you, who are first-time Airbnb hosts. We don’t provide consulting since we aren’t experts in running Airbnb businesses; but, we do provide useful data to Airbnb hosts.

You may use the Airbtics dashboard to figure out how much money you can make doing Airbnb in your city. Unlike other online Airbnb income calculators, it will provide you with a lot more useful information, such as

– which neighborhood to target,

– which amenities are in high demand,

– what is the market’s historical performance,

– what are the occupancy rates of a two-bedroom house,

– should I do a two-bedroom house or a three-bedroom house?

Well, if you are new, there are many Airbnb host communities on Facebook. Type “Airbnb host” in the Facebook search, you’ll see plenty of active communities where you can get help from experienced Airbnb hosts.

Tags Airbnb Rules & Regulations, lat_41.8933203, lng_12.4829321

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Is Property Investment Worth it in Italy?

What are the Airbnb regulations in Italy?

Are Foreigners Eligible for Property Investment in Italy?

Top 10 Profitable Airbnb Cities in Italy

1. Rome

2. Positano

3. Capri

4. Sorrento

5. Venice

6. Sicily

7. Amalfi

8. Milan

9. Florence

10. Tuscany

Conclusion

Fixed rate

Variable rate

Mixed rate

Constant variable rate installment

How to apply for a mortgage in Italy?

1. Mortgage Application

2. The Preliminary Feasibility opinion

How do Italian mortgages work?

Costs of Investment Property

UPFRONT COSTS:

1. Agency Fees

2. Notary Fees

3. IVA (Value Added Tax)

ONGOING COSTS:

1. IMU Municipal Property Tax (Imposta Municipale)

2. TASI Indivisible Services Tax (Tassa sui Servizi Indivisibili)

3. Home insurance

What is a good cash return/net rental yield?

Is Airbnb legal in Rome?

Short-term rental policy in Rome

Italy’s General Legislations

Short-term rental policy in Italy

Pros and Cons of running Airbnb

Pros

Cons

Conclusion

Airbnb Data At Your Fingertips!

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