National Identification Code (CIN): New Rules for Short-Term Rentals from 1st September 2024
Starting from September 1, 2024, a new regulation will come into force in Italy introducing the National Identification Code (CIN) for short-term rentals. This code represents a significant turning point in the tourist rental sector, aimed at ensuring greater transparency and combating tax evasion, a growing problem in a market that has seen exponential growth in recent years thanks to platforms such as Airbnb and Booking.com.
Context and Rationale of the Regulation
In recent years, the short-term rental market has seen unprecedented growth, driven by the ease with which owners can rent out their properties for short periods. However, this growth has led to increased tax evasion and the proliferation of businesses that do not comply with local regulations, especially in the areas of safety and hygiene.
The Italian government has therefore decided to intervene with the National Identification Code (CIN), a tracking and regulation system that requires all owners of properties intended for short-term rentals to register on a telematic portal managed by the Ministry of Tourism. This code will be unique for each property and must be reported in all advertisements, both online and offline.
How the National Identification Code (CIN) Works
The CIN is issued by the Ministry of Tourism through a dedicated portal, where owners must register their properties intended for short-term rentals. This code must then be displayed visibly outside the property and included in every advertisement. This requirement is mandatory for all types of short-term rentals, both those managed in an entrepreneurial and non-entrepreneurial form.
Security and Compliance Obligations
In addition to the CIN requirement, the law also requires compliance with rigorous safety standards. Properties intended for short-term rentals must be equipped with devices for the detection of combustible gases and carbon monoxide, as well as portable fire extinguishers that comply with current regulations. These requirements apply to all real estate units, regardless of the number of properties managed by the owner.
Penalties for Non-Compliance
The law provides severe sanctions for those who do not comply with the CIN requirements. Those who rent a property without having obtained the identification code risk fines ranging from 800 to 8.000 euros. Furthermore, those who obtain the CIN but do not display it risk fines ranging from 500 to 5.000 euros. Violations of safety requirements are also punishable by fines ranging from 600 to 6.000 euros. For those who manage more than four properties without having submitted the Certified Notification of Start of Activity (SCIA), fines can reach up to 10.000 euros.
Impacts on Online Platforms and the Tourism Sector
Short-term rental platforms such as Airbnb and Booking.com will have to ensure that each property listed has a CIN and that the code is visible in the ads. This will lead to greater control and greater responsibility for these platforms, which could be held liable for any violations.
For owners and tourism businesses, the introduction of the CIN represents a further step towards formalizing and regulating the sector. Those who manage more than four properties will be required to register as a business, with all the tax and regulatory obligations that this entails. This could lead to a reduction in supply in the short-term rental market, especially from small owners who may find the new regulations excessively onerous.
Criticisms and Concerns
Despite the intentions of the regulation, the introduction of the CIN has raised several criticisms. In particular, small property owners and managers fear that the new system could introduce further bureaucratic complications, making tourist rentals more difficult and less convenient. Furthermore, there is concern that the high cost of fines could have a dissuasive effect, pushing many to withdraw from the short-term rental market.
Some tourism experts have also raised concerns about the authorities’ ability to effectively monitor compliance with the new rules. In a market as large and fragmented as short-term rentals, ensuring compliance could prove a daunting task, especially in more peripheral and less monitored areas.
Future Implications for the Short Term Rental Market
The introduction of the National Identification Code could mark the beginning of a new era for the short-term rental market in Italy. On the one hand, increased regulation could lead to a more transparent and safe market, where every operator is required to respect the same rules. On the other hand, there is the risk that excessive bureaucratization could suffocate a sector that, until now, has represented one of the few sources of additional income for many Italian families.
In particular, cities of art and popular tourist destinations could see a reduction in the supply of short-term accommodation, with a consequent increase in prices. This could have negative effects both for tourists, who would find fewer affordable options, and for local economies, which largely depend on tourism.
Conclusion
The National Identification Code (CIN) for short-term rentals represents one of the most important regulatory innovations in recent years in the Italian tourism sector. While on the one hand the new regulation aims to combat tax evasion and ensure greater security, on the other it poses new challenges for owners, managers and online platforms.
It will be essential to carefully monitor the impact of this regulation in the coming months and years, to understand whether it will be able to achieve its objectives without stifling the dynamism and vitality of a sector that has contributed significantly to the growth of tourism in Italy. As is often the case with new regulations, the success or failure of the CIN will depend largely on its practical implementation and the ability of the authorities to enforce the rules in a fair and transparent manner.
As the short-term rental sector prepares to face these new challenges, it remains to be seen how the market will react to an increasingly complex and regulated regulatory environment. In any case, the CIN represents a decisive step towards greater formalization and transparency in the short-term rental sector in Italy, with the ultimate goal of creating a fairer and more sustainable market for all operators involved.