Profitability: Airbnb vs Long-Term Rentals in Italy

Published on October 3, 2025 and written by Cyril Jarnias

Airbnb Rentals vs Long-Term Rentals in Italy: Which is the Most Profitable Solution?

In a real estate context where investment profitability is often scrutinized meticulously, Italy stands out as a mosaic of potential and challenges for property owners seeking to maximize their profits.

This article explores the thorny question of whether renting through Airbnb or long-term rentals prove more profitable in this country rich in culture and regional diversity.

Analysis of Key Figures in Major Italian Cities

Through an in-depth study, we examine how key factors influence these two investment approaches:

• The impact of the tourist season
• Local demand
• Current regulations

Comparison Between Major Destinations

From Rome to Milan, including the lesser-known gems of Tuscany, we scrutinize the economic and tourism dynamics:

City	Airbnb Profitability	Long-Term Rental Profitability
Rome	High (seasonal)	Stable
Milan	Moderate	High
Tuscany	Very High (summer)	Low

Conclusion: Which Strategic Choice to Prioritize?

Our analysis provides an overview of the best strategies to adopt for real estate investors in Italy, depending on location and yield objectives.

Understanding Seasonal Rental Yields in Italy

The yield of seasonal rentals in Italy depends mainly on tourist location, property type, seasonality, and regulatory and tax framework, with demand peaks in major art cities like Rome, Florence, and Venice during spring and summer, and net profitability modulated by taxation (IRPEF or cedolare secca) and management and cleaning costs. Recent obligations (CIN registration number, platform withholding taxes) and local taxes (tourist tax) influence margins and require rigorous management compared to long-term rentals.

Main Characteristics of Short-Term Profitability

• Demand driven by international tourist flows, concentrated in art cities and coastal areas; high season generally extends from April to October, with peaks at Easter, May-June, August, and during major local events; in winter, demand remains sustained in Rome and Venice (festivals, holidays), more cyclical in Florence.
• Tax framework: choice between taxation under the IRPEF scale on net income (deductibility of certain expenses) or opting for the flat-rate cedolare secca at 21% on gross rents for non-professional rentals; some municipalities/regions apply local variants or reductions; declaration is mandatory including for non-residents.
• Regulatory framework: obligation to register and display the CIN (National Identification Code) on all listings; significant penalties for non-compliance; platforms/agencies handling collection must withhold 21% on collected rents under the flat-rate regime.
• Recurring costs: cleaning fees, laundry, supplies, platform or agency commission, tourist tax collected and remitted, routine maintenance; deductibility varies depending on the chosen tax regime (deductible under IRPEF, non-deductible under cedolare secca).

Comparison by Property Type

• Central Studios/1-Bedrooms: high occupancy rates due to city-break demand and pricing flexibility, higher turnover and more frequent cleaning costs per rented night.
• 2-3 Room Apartments: better average basket per family stay; balance between occupancy and ADR, sensitive to school holidays and cultural events.
• High-End Properties/With Views (e.g., canal in Venice, historic center in Rome, Oltrarno in Florence): significantly higher ADR, more volatile occupancy off-season; need for premium management and strict compliance with local rules.
• Houses/Coastal and Lake Areas: more marked seasonality (summer) with strong ADR increases; off-season, use of longer stays or discounts to maintain occupancy.

Regional Differences and Focus on Rome, Florence, Venice

• Rome: nearly year-round demand (historic sites, conferences, Easter, Jubilees), high season April-June and September-October; strong regulatory pressure and tourist tax collection; good occupancy performance for small units near the center and metro.
• Florence: marked peaks April-June and September (local art biennale, trade shows, university start), relative low in winter outside holidays; highly regulated historic center, control of registration and advertising with local code/CIN.
• Venice: extended high season April-October; specific peaks during Carnival (February) and the Mostra (late August-early September) which boost ADR; strict local rules on tourist rentals and communication of identification code on listings.

High Season Periods and Impact of Events

National high season: Easter, May holidays, summer (June-August), September return; local events (Venice Carnival, Mostra, Jubilees/religious events in Rome, major exhibitions and trade shows in Florence) increase ADR and reduce minimum stays, but require fine management of calendars and prices.

Operating Data: Occupancy, Revenue, and Costs

• Average Occupancy Rate: higher in historic centers and hyper-touristic areas, sustained year-round in Rome and Venice; more seasonal in Florence; performance depends on compliance (CIN, taxation) and quality of management.
• Daily Revenue Per Rental (ADR): maximized during event peaks and high season; sensitive to property size/standard and proximity to attractions; art cities offer higher ADRs but also higher costs and constraints.
• Typical Associated Costs:
  • Cleaning/laundry fees per stay, more frequent on small units with fast turnover.
  • Platform/agency commissions and 21% withholding tax if collection through intermediary.
  • Tourist tax collected and remitted to municipality, variable rates by city.
  • Maintenance, supplies, insurance, administrative compliance (CIN, reporting to authorities).

Contrast with Long-Term Rentals

• Short-Term Advantages:
  • Higher gross revenue potential in tourist hotspots and during events, with intra-year pricing flexibility.
  • Diversification of rental risk and possibility of personal use off-season.
• Specific Challenges:
  • Heavier operational management (cleaning, check-in, calendar, communication) and higher variable costs; strict compliance (CIN, code display in advertising, tourist tax collection obligations).
  • Taxation: choice of regime; the 21% cedolare secca on gross simplifies but eliminates expense deductibility, whereas IRPEF allows deductions but at a progressive scale.
• Long-Term Rentals:
  • More stable revenues, less vacancy and turnover costs; simplified management; taxation often via residential cedolare secca with potentially reduced rates depending on lease type, but without seasonal revenue peaks.
  • Less exposure to tourist tax and tourism obligations, but less flexibility on rent adjustments and personal use of property.

Summary Comparative Table

Criterion	Short-Term (Rome/Florence/Venise)	Urban Long-Term
High Season	April–October; local event peaks	Non-seasonal
Occupancy Rate	High but variable by events/neighborhoods	Stable, moderate
ADR	High, very sensitive to peaks	Fixed or annually adjustable
Variable Costs	Cleaning, laundry, commissions, tourist tax	Limited (maintenance, condominium fees)
Taxation	Deductible net IRPEF or 21% gross cedolare secca	Residential regimes, tax stability
Compliance	Mandatory CIN, code display, 21% withholding if platform collection	Standard lease formalities
Sensitivity to Events	Very strong (Carnival, Mostra, Easter)	Low

Best Practices to Optimize Seasonal Yield

• Obtain and display the CIN on all listings; avoid fines and ensure legal visibility.
• Choose tax regime based on expense profile: IRPEF if high deductible expenses, cedolare secca if low expenses and simplicity objectives.
• Dynamically adjust prices and minimum stays around local events and holidays; enhance experience quality to support occupancy and reviews.

Performance Comparison of Airbnb and Long-Term Rentals

Potential revenues vary strongly by city, property type, and management. In 2024–2025, an average Airbnb in Rome generates about €37,000/year with an ~77% occupancy rate and an average daily rate ~€141, illustrating a gross potential higher than many long-term rentals on comparable properties, but with more volatility and operational costs. Italian taxation imposes a 21% withholding tax on short-term rental income received via platforms for non-professional hosts (cedolare secca), which directly affects net income compared to a long-term rental under the chosen regime.

Comparative Analysis of Potential Revenues (Rome, Milan, Florence, Naples)

Rome

• Airbnb: ~€37k/year, ~77% occupancy, ADR ~€141, strong seasonality, peak in spring-early summer.
• Long-Term: stable monthly revenues, often lower than Airbnb seasonal peak for equivalent property, but net more predictable (less vacancy, fewer variable fees).

Milan

• Airbnb: business markets + trade shows, moderate seasonality with event peaks; high gross potential on studios/1–2 bedrooms.
• Long-Term: high and continuous rents due to corporate/student demand; gross revenue gap vs. Airbnb reduced outside events.

Florence

• Airbnb: strong tourist premium, marked high season; gross often > long-term over 8–9 months, but more pronounced winter lows.
• Long-Term: lower monthly yields in summer but annual stability.

Naples

• Airbnb: tourist growth, lower ADR than Rome/Milan but good occupancy rates in high season; interesting gross potential on well-located small properties.
• Long-Term: lower rents than Milan/Rome, attractive stability and lower costs.

Average Occupancy Rates and Impact on Profitability

Airbnb

• Example Rome: ~77% average annual occupancy; profitability depends on ADR × occupancy – variable costs trade-off.
• A 10-point drop in occupancy can cancel the gross advantage versus long-term if variable costs and management commission are high.

Long-Term

Occupation near 100% once rented (vacancy limited to tenant changes), which smooths cash flow and protects net yield despite often lower gross.

Operational Costs by Rental Type

Airbnb (Short-Term)

• Management/Concierge: ~10–25% of revenue depending on service level.
• Taxation: 21% withholding on short-term rental income via platforms for non-pros, with annual certificazione unica.
• Maintenance and Turnover: cleaning, laundry, supplies, more frequent repairs; significant costs per night.
• Platforms: intermediation commissions (included on host side depending on model).

Long-Term

• Rental Management: ~5–10%.
• Taxation: regime of choice (e.g., cedolare secca outside furnished tourist rentals, or IRPEF depending on case; not detailed here), generally more stable.
• Maintenance: less turnover, moderate wear so lower costs.

Impact of Tourist Seasonality

• Airbnb: results very sensitive to high/low periods; in Rome, seasonality noted as “strong,” most profitable month: May. Winter lows can reduce annual net if ADR is not adjusted or vacancy increases.
• Long-Term: low seasonality; revenues smoothed over 12 months, mitigating low-period risk.

Flexibility and Risks (Local Regulations, Market)

Airbnb

• Pricing and occupancy flexibility, possibility to block periods; but exposure to regulatory and tax changes (21% withholding requirement since 2024, reporting obligations).
• Market Risk: dependence on tourist demand and shocks (events, restrictions, increased competition).

Long-Term

More rigid contracts, but better cash flow predictability; less sensitivity to tourist shocks; different rental/legal risk (non-payments, relocation delays).

Forecasts and Trends in Italy

• Remote Work and Long Stays: support medium/long-term furnished bookings, reducing seasonality and stabilizing occupancy of short-term furnished units optimized for “mid-term stays.”
• Professionalization: rise of professional management and revenue management optimization; growing performance gap between amateur and pro hosts.
• Regulation: maintenance of 21% withholding and increased platform monitoring; highly touristic cities may strengthen registration rules and caps, favoring long-term in some neighborhoods.

Case Studies and Graphic Examples

Rome Case Study (Indicative Annual Figures)

• Assumptions: Downtown 2-Bedroom, ADR €141, occupancy 77%, Gross Revenue €37,000; management 20%, cleaning/supplies 7%, other 3%, 21% withholding on eligible income.
• Quick Net Estimate Before Property Charges:
  • Gross Revenue: €37,000
  • Management (20%): −€7,400
  • Variable Operational (10%): −€3,700
  • Taxable Base Withholding (assumed on Platform Revenue): €37,000 × 21% = −€7,770
  • Estimated Operational Net: ≈ €18,130
  • To compare with equivalent long-term at, e.g., €1,600/month net of 7% management: ≈ €17,856/year.

ASCII Chart – Airbnb Net Sensitivity to Occupancy Rate (Fixed ADR €141, Identical Costs/Structure)

Assumptions: nights/year = 365 × occ; Revenue = nights × €141; management 20%, op. 10%, withholding 21% on Revenue.

Occupancy     Revenue (€)    Estimated Net (€)
60 %           30,879         15,147
70 %           36,026         17,675
77 %           39,653         19,436
85 %           43,751         21,454

Reading: below 70% occupancy, the net advantage vs. a long-term at ~€1,600/month becomes tenuous; above 80–85%, Airbnb regains a net lead.

Summary Comparative Table

Criterion	Airbnb (Short-Term)	Long-Term
Gross Revenues	High in high season; e.g., Rome ~€37k/year at 77% occ., ADR ~€141	Stable, lower than seasonal peak
Occupancy Rate	Variable; sensitive to season and management	Near 100% once rented
Management Costs	10–25% of Revenue	5–10%
Maintenance/Turnover	High (cleaning, wear)	Low (little turnover)
Key Taxation	21% Withholding (cedolare secca) for non-pro via platforms	Stable regimes depending on status
Season Sensitivity	Strong in tourist cities	Low
Flexibility	High (price/calendar), but regulatory risk	Low, but predictable flows
Risk Profile	Demand volatility + local rules	Non-payment/limited vacancy risk

Action List for the Investor

• Quantify local ADR and occupancy (at least 12 months) and simulate net after management and 21% withholding.
• Test low season and demand shock scenarios; validate break-even point vs. local long-term.
• Check municipal rules (registration, zoning, caps) and ability to pivot to medium-term stays.
• Choose an appropriate management level (DIY vs. concierge) and measure its impact on occupancy and net.

Factors Influencing Profitability by City

The key profitability factors for Airbnb vs long-term rental in Italy vary by city and market type: acquisition cost, occupancy rate, tourist seasonality, local regulations, and demand structure, with long-term yields often around 3–5% gross in Rome/Milan versus higher potentials in well-managed tourist areas, sometimes 8–12% gross in seasonal.

• Real Estate Cost and Gross Yields
  • Major Cities (Rome, Milan): high prices, long-term yields generally 3–5% gross; stability and capital gain potential compensate for more modest current profitability.
  • Tourist Regions (Tuscany, Puglia, Amalfi Coast): potential of 8–12% gross in short-term if location and management are optimized, especially during high season.
• Occupancy Rate and Seasonality
  • Major Urban Markets: more regular occupancy year-round (business, events), limiting revenue volatility, but with average ADR under competitive pressure.
  • Coastal and Heritage Markets (Rural Tuscany, Amalfi Coast): strong seasonality with summer/spring peaks; revenues concentrated over 4–6 months, requiring dynamic pricing and cash flow for off-season.
• Local Regulations and Tax Framework
  • Obligation of host registration and tax payment on rental income introduced in 2023 at national level, increasing compliance costs and reducing net if not anticipated.
  • Restrictive municipal policies in some historic centers (e.g., prohibition of new short-term rentals in Florence center) can limit new supply, support prices, but constrain acquisition strategy.
  • Tax Pressure and Control: settlement of a major dispute between Airbnb and Italian tax authorities (€576M for 2017–2021) underscores tightening enforcement, with strengthened collection and transmission—indirect impact on market professionalization.
• Demand Differences: Major Metropolises vs Small Towns and Tourist Areas
  • Rome and Milan
    • Diversified Demand: cultural tourism (Rome), business and trade shows (Milan) stabilizing occupancy outside summer season.
    • Long-Term: demand sustained by students, expatriates, and executives; low vacancy rates but gross yields contained by high purchase prices.
  • Smaller Towns and Tourist Regions (Tuscany, Amalfi Coast)
    • Short-Term: search for “destination” experiences (villas, agritourism, sea views) driving ADR; increased dependence on season and accessibility.
    • Long-Term: narrower demand, often local; rents capped by purchasing power, but sometimes lower acquisition costs improving net yield on secondary properties.
• Recent Trends in Traveler vs Long-Term Tenant Demand
  • Travelers:
    • Increase in average daily rate in 2023 in Italy, supporting RevPAR for short-term despite operational cost inflation.
    • Professionalization: registration, taxation, and local restrictions favor better-capitalized operators, with pricing/calendar optimization.
  • Long-Term Tenants:
    • Search for stability and controlled budgets in large cities; increased sensitivity to inflation and cost of living compressing potential rent increases against high purchase prices.
    • Shift of part of residential demand from historic centers subject to tourist restrictions to peripheral neighborhoods, influencing rent/occupation balances.
• Impact of International Events
  • Post-Pandemic Recovery: return of international tourist flows revived short-term demand, particularly in iconic destinations, fueling ADR increases in 2023.
  • International Regulatory and Tax Context: tightening compliance (e.g., tax dispute in Italy) pushes for greater transparency, with effects on net margins and structuring of short-term rental activities.
• Operational Variables Influencing Airbnb vs Long-Term Profitability Gap
  • Management, cleaning, check-in/out, platform fees: higher in short-term—need for sufficient occupancy threshold and ADR to exceed long-term.
  • Calendar: optimization of high season and events (fairs in Milan, holidays and festivals in Rome and Tuscany) to smooth occupancy outside peaks.
  • Regulatory Risk: probability of new restrictions in saturated centers; relevant geographic arbitrage towards municipalities with stable policies.

Summary Comparative Table

Market	Demand Profile	Season/Occupation	Notable Regulations	Typical Yield
Rome	Cultural Tourism + City-Breaks	Relatively Spread Out	Possible Local Measures, National Registration	LD: 3–5% Gross; ST: Higher if Well-Located
Milan	Business, Fairs, Urban Tourism	Strong in Pro Weeks, More Stable	Strengthened Compliance	LD: 3–5% Gross; ST: Depends on Trade Shows and Events
Tuscany (Rural/Hills)	Experience Stays, Villas	Spring-Summer Peak	Targeted Restrictions in Historic Centers (e.g., Florence)	ST: 8–12% Gross if High-End Well-Managed
Amalfi Coast	Premium Leisure, International	Summer Peak	Possible Local Constraints	ST: High but Very Seasonal; LD More Limited

Points of Attention for the Investor

• Model a Prudent Scenario: off-season occupancy, cost increases (cleaning, energy), and local taxes.
• Integrate Municipal Regulatory Risk Before Purchase (zoning, night caps, partial prohibitions).
• In Large Cities, Compare the Stability of Long-Term (3–5% Gross) to the Higher but More Volatile Potential of Short-Term, Valuing Active Management and Event Peaks.
• In Tourist Regions, Aim for “Destination” Properties and Optimized Opening Windows to Reach the 8–12% Gross Range, While Anticipating Off-Season and Local Taxation.

Guide to Choosing Between Airbnb and Long-Term Rental in Italy

Short-Term Rental (Airbnb) offers more flexibility (date blocking, dynamic price adjustment, possibility of personal use), while long-term rental provides revenue stability through multi-month leases with limited vacancy.

• Airbnb: seasonal price adjustment, possibility to switch to medium/long-term off-season via monthly stays on the same platform.
• Long-Term: more rigid but predictable contracts; better cash flow visibility, less daily management.

Selection Criteria — Revenue Potential and Seasonality (by City)

• Cities with High Tourist Demand (Rome, Milan, Venice, Florence, Naples): high Airbnb revenues in high season, with higher prices and occupancy rates in summer; performance drops in low season, requiring active pricing and filling strategy.
• In Metropolises with Deep Year-Round Demand (Milan, Rome), the revenue gap between high and low season is smaller, making Airbnb competitive if management is optimized; conversely, long-term smooths revenue over 12 months.
• Monthly Stays via Airbnb Can Mitigate Seasonality (targeting digital nomads, professionals), but still involve more sustained management than a classic lease.

Legal Obligations (Italy)

• Minimum Stay: proposed rule imposing a minimum of 2 nights for short-term rentals in the 14 metropolitan cities (Bari, Bologna, Cagliari, Catania, Florence, Genoa, Messina, Milan, Naples, Palermo, Reggio Calabria, Rome, Turin, Venice), extendable to municipalities with high tourist density according to ISTAT.
• Listing Identification: implementation of a mandatory identification code for short-term rentals.
• Welcome and Registration: strengthened administrative obligation to personally welcome tenants and transmit their identity to the local police station (host control and communication to authorities).
• Long-Term: standard rental regime (registered contracts, security deposit, compliance with habitability standards); lower burden of recurring reporting than short-term daily, but standard tax and contractual obligations remain applicable.
• Note: municipalities can add local requirements (registration, tourist taxes, host codes); check the decrees of the concerned municipality.

Associated Costs

• Airbnb:
  – Management Fees (concierge, cleaning between stays, check-in/ID, reactive maintenance).
  – High Management Time (dynamic pricing, messages, administrative compliance).
  – Platform Commissions on host and/or traveler side; linen, supply costs; tourist tax to collect depending on city.
• Long-Term:
  – Agency Fees at rental setup, diagnostics, scheduled preventive maintenance.
  – Fewer turnovers, so much lower recurring move-in/move-out and cleaning costs.
  – Generally lower rental vacancy but property immobilization (limited flexibility).

Impact of Location — Concrete Examples

• Rome and Milan: very large stock of listings and strong tourist demand; Airbnb performs well in high season but subject to 2-night minimum and identification rules; long-term remains attractive to reduce turnover and secure annual occupancy.
• Venice and Florence: high tourist pressure and increased regulatory sensitivity; Airbnb potentially very profitable in summer, but more constrained (min. stay, controls); long-term reduces exposure to regulatory changes and turnover costs.
• Turin, Bologna: mixed business/study demand; Airbnb works around trade shows, fairs, university start, but long-term can offer a better stable occupancy rate with student/young professional tenants.
• Coastal Cities and Seasonal Destinations: peak Airbnb profitability in summer, marked dilution off-season; possible switch to monthly stays to smooth income.

Typical Tenant Profiles

• Airbnb: tourists, leisure travelers, short stays; on monthly stays: digital nomads and professionals seeking furnished accommodations with Wi-Fi and workspaces.
• Long-Term: students, young professionals, local households, expatriates on long missions; sensitivity to rent level, proximity to transport/universities/jobs.

Tax Implications for Owners

– Short-Term (Airbnb): taxable furnished short-term rental income; collection/remittance of tourist tax depending on city; listing identification and reporting may condition tax compliance.
– Long-Term: rent taxation according to applicable owner regime; deductible expenses depending on regime; lease registration.
– In Both Cases: need to align taxation with status (occasional vs professional activity), maintain revenue traceability, and integrate local levies when required.
– Recent Regulatory Evolutions (minimum stay, identification code, welcome and identity transmission obligations) strengthen compliance and thus indirect costs on the short-term side.

Summary Comparative Table

Criterion	Airbnb (Short-Term)	Long-Term Rental
Flexibility	Very High (dates, prices, personal use)	Low to Medium (fixed contract)
Revenue	Higher in High Season; Volatile Off-Season	More Stable Over 12 Months
Regulation	Min. 2-Night Stay in 14 Metropolises; ID Code; Host Registration with Police	Classic Rental Framework; Less Daily Reporting
Management	Intense (Concierge, Check-In, Cleaning, Support)	Light to Moderate
Costs	Commissions, Frequent Cleaning, Tourist Tax, Management Time	Initial Agency Fees, Planned Maintenance
Tenants	Tourists; Nomads and Pros on Monthly Stays	Students, Employees, Families
Favorable Cities	Rome, Milan, Venice, Florence (Seasonal and Events), Coastal Summer	University/Business Cities (Turin, Bologna), Residential Neighborhoods
Regulatory Risk	Higher (Local Restrictions)	Lower

Practical Advice

– If you target tourist hubs with strong seasonal peaks and accept active management and compliance constraints, prioritize Airbnb. In more “resident” markets or if you seek predictable cash flow and little management, opt for long-term.