Buying Property in Italy for B&B or Short-Term Rentals 

Why Due Diligence Is Crucial Before Buying an Investment Property in Italy 

If you are buying an Italian property to use it as a Bed & Breakfast (B&B) or short-term rental, you must do some additional due diligence checks before committing to the purchase to make sure you will not face unexpected challenges. For example, even if a B&B is currently operational, a change in ownership may trigger zoning issues, condo conflicts, or municipal enforcement actions. Due diligence is essential to avoid fines, shutdowns, or unexpected costs. 

At Studio Legale Metta, we specialize in assisting international clients investing in the Italian hospitality property market. 

Condominium Rules: Can You Run a B&B in a Residential Building? 

Condo Restrictions Could Override Your Plans – Recent court decisions confirm that condominium rules, especially those recorded in property deeds, can ban or limit short-term rentals: 
-Condos may ban hospitality use even if not explicitly mentioned. 
-Condo administrators can take legal action against owners violating use rules. 
-B&Bs are considered similar to “lodging houses” (in Italian, casa di alloggio) and therefore “lodging houses” restrictions can apply to B&Bs too. 

Breach fines: What You Risk – Operating against condo rules can lead to fines: 
-Courts consider €100/day a fair penalty for breaching condo rules against B&B operations. 
-Even if you file an appeal to fight any of those rules, they remain enforceable until there is a final Court decision. 

Extra Condo Fees? Only with Unanimous Consent – Courts have determined that it is reasonable to establish increased condo fees on B&B owners. However, the property owners must go through a special approval process that requires unanimous decisions. 

Local Laws: B&B Regulations in Rome, Florence, Venice 

Zoning Laws Are Changing Fast – Several Italian cities are cracking down on short-term rentals by adopting stricter zoning rules: 
– Florence just banned short-term rentals in UNESCO areas. Additionally, Florence requires some stricter size standards to use a unit as a rental, with some minimum rooms requirements.
– Rome adopted new zoning rules and adopted stricter zoning rules in historic districts. 
– Venice adopted a special Register and license requirements (SCIA) for short-term rentals exceeding 120 days per year. 
Fines for noncompliance range from €1,000 to €10,000.  

Unlawful Lockboxes Are Being Removed – After the increase in short-term rentals and the accompanying proliferation of lockboxes outside of buildings, in November 2024, the Ministry banned self check-in.  Rome was the first to launch inspections to remove unauthorized lockboxes from buildings, even on private properties if facing public areas. Other cities are adopting similar restrictions. 

Legal Compliance: Licensing, Safety, Guest ID, and Tax Rules 

Licensing – A property needs to meet certain requirements to be licensed for short-term rental business. For each short-term rental an owner must obtain:
– SCIA: an affidavit confirming that the property is up to code
– CIR: an identification number assigned upon request by the Region
– CIN: an identification number assigned upon request by the National Tourism Department. 

Mandatory Safety Features – B&B units must have:
– Fire extinguisher +
– Detectors for smoke, natural gas and carbon monoxide.

Guest ID Verification Required – Host must identify all guests for every single stay by requesting identity documents. Doormen are not legally authorized to perform this task.
Failure to follow guest ID procedures can lead to: 
– Arrest up to 3 months 
– Fines up to €206 

Tax Rules – Recent changes in the tax system put additional burdens on owners for short-term rental tax compliance: 
– if a person earns short-term rental income from more than one property and wants to opt for the flat tax, only one will benefit from the 21% rate, whereas the tax rate for the additional units will be 26%.
– a person can report short-term rental as personal income for a maximum of four properties. If a person earns short-term rental income from five or more properties, all the income must be reported as business income, subject to business accounting and compliance rules. 

How We Help: Legal Due Diligence for B&B Property Buyers 

At Studio Legale Metta, we apply specialized legal due diligence standards applicable to investment properties. Our review includes condo rules and restrictions as well as zoning and permit compliance. Additionally, we assist investors with the acquisition of the short-term rental business as a whole, including all licenses, contracts, copyrights, transition of existing bookings, title strategy for tax optimization, etc. 

We recommend engaging our legal team before committing to an Italian property purchase for short-term rental activity, whether it is already used as a B&B or not.