New tourist restrictions in Milan: Why student leases are once again the number one choice for hosts in 2026

If you are a host in Milan in 2026, you have undoubtedly noticed a radical change in the local property landscape. As the Lombard capital prepares to vibrate to the rhythm of the Winter Olympic Games, the tourist frenzy hides a much more complex reality for short-term rental hosts. Once considered the goose that lays the golden eggs, the short-term rental model in the vein of Airbnb is now showing its limits in the face of an increasingly dissuasive legislative and tax arsenal.

At Roomlala, we support thousands of hosts daily in the management of their properties. Today, we are witnessing a fundamental trend: the resurgence of long-term letting, and specifically student leases. Faced with an accumulation of administrative constraints and soaring taxes, renting to a student is no longer just a supportive choice; it has become the most profitable and secure financial strategy in Italy. Let’s decode this transformation of the Milanese property market.

The end of the golden age of short-term rentals in Milan in 2026

Increasingly heavy taxation for hosts

The year 2026 marks a decisive turning point in Italian tax policy regarding short-term rentals. Historically, the cedolare secca (flat-rate tax) system offered a very advantageous single rate for tourist rentals. Today, the situation has changed. The government has implemented a progressive taxation system designed to curb property speculation. From now on, if you rent out a first property on a short-term basis, the cedolare secca remains at 21%. But from the second property onwards, this rate inevitably climbs to 26%.

The real fiscal blow, however, comes from the third property onwards. Until recently, a host could manage up to five apartments as short-term rentals as an individual. In 2026, the Finance Act drastically lowered this threshold: from the third property rented out on a short-term basis, the activity is automatically reclassified as a commercial business. This implies the obligation to open a Partita IVA (VAT number), keep company accounts, and pay social security contributions (INPS), which eliminates profitability for the majority of small-scale investors.

This increased tax pressure aims to rebalance the rental market, which is particularly strained in large metropolitan areas. In Milan, although the municipality has not formally prohibited the creation of new tourist rentals in its historic centre (unlike the city of Florence, which took radical measures), the vice is tightening through taxation. For many Milanese hosts, the calculation is quickly made: the net yield of short-term rentals is melting away like snow in the sun in the face of these new levies.

The weight of new European and local administrative constraints

Beyond taxation, it is the administrative labyrinth that is currently discouraging hosts. The strict obligation to display the National Identification Code (CIN) on all booking platforms is now scrutinised under a microscope. The absence of this famous CIN on a listing exposes the host to massive fines, ranging from 800 to 8,000 euros. Furthermore, obtaining and maintaining this code requires compliance with strict safety standards (carbon monoxide detectors, fire extinguishers), adding significant installation and maintenance costs.

Transparency has also become the absolute standard at the European level. Since 20 May 2026, the European Regulation 2024/1028 has been fully applicable. This directive obliges all rental platforms (Airbnb, Booking, etc.) to automatically and monthly share host income and identity data with the Italian tax authorities (Agenzia delle Entrate). The era of the underground economy or under-reporting is definitively over, with cross-checks now managed by infallible algorithms.

Finally, the local Milanese context is increasing the bill for travellers, mechanically reducing the attractiveness of short-term rentals. Due to the organisation of the Winter Olympic Games, the city of Milan has significantly increased the tourist tax, which can now reach 9.50 euros per night per person for tourist rentals. This vertiginous rise is pushing many travellers to turn to traditional hotels or outlying communes, leading to a drop in occupancy rates for hosts within Milan itself.

Student lease: The safe haven for Milanese hosts

The 10% "Cedolare Secca": An unbeatable tax advantage

Faced with this obstacle course, the student lease (contratto per studenti universitari) appears as an oasis of tranquillity and profitability. Designed for periods ranging from 6 to 36 months, this type of contract benefits in 2026 from massive fiscal support from the Italian State. The most spectacular advantage is undoubtedly the application of a cedolare secca reduced to just 10% (compared to 21% or 26% for tourism). This exceptionally low rate allows the host to keep a much larger share of their gross rental income.

However, we would like to highlight a crucial point of caution: to benefit from this 10% rate, it is imperative to apply a controlled rent, known as canone concordato. This rent is not set freely by the host but is calculated according to precise scales defined by the territorial agreements of the city of Milan (based on surface area, neighbourhood, floor, presence of a lift, etc.). Although the stated rent is slightly lower than the free-market price, the tax saving very amply compensates for this difference.

Moreover, signing a student lease offers unparalleled financial predictability. No more stress from last-minute cancellations, low winter seasons, or time-consuming check-in/check-out management. The host secures a fixed and regular income throughout the academic year, while preserving their property from premature wear and tear linked to the incessant rotation of tourists.

IMU reduction and advantages for tenants

Tax incentives do not stop at income tax. By opting for a student lease with controlled rent, Milanese hosts also benefit from an automatic 25% reduction on their local property tax, the IMU (Imposta Municipale Propria). In a city where cadastral values are among the highest in Italy, this discount represents an annual saving of several hundred, or even thousands, of euros, further boosting the net return of the operation.

On the demand side, the market is more dynamic than ever. Milan remains Italy’s university capital, attracting tens of thousands of students each year (Politecnico, Bocconi, Statale, etc.). In 2026, the government reinforced aid for these young people: student tenants now benefit from a 19% tax deduction on their rent (capped at approximately 500 euros per year). This measure has a direct effect for you, as hosts: students are extremely keen on legal and registered contracts to be able to benefit from this aid.

This synergy of interests creates an extremely healthy rental environment. Students and their guarantors (often parents) seek stability and are ready to commit seriously, while hosts find reliable, solvent tenants supported by tax incentive schemes. It is a win-win relationship that secures your property assets.

Concrete comparison: Tourist rental vs. Student lease in Milan

To fully understand the impact of these reforms, let’s take a concrete example. Imagine Marco, the owner of two charming one-bedroom apartments in the popular Città Studi district, a stone’s throw from the Politecnico. Until 2025, Marco rented out both his properties on Airbnb. In 2026, reality caught up with him. On his second apartment, rented for an average of €1,500 gross per month, he must now pay 26% in cedolare secca (i.e., €390 in monthly taxes). To this must be added cleaning fees, the platform commission (about 15%), and rising rental vacancy due to the €9.50 tourist tax that scares away budget travellers.

Marco’s net yield on this second property painfully drops to €750 per month, without counting the time spent answering messages, managing key exchanges, and ensuring his CIN compliance. Exhausted by this quasi-hotel management and frightened by the automatic data sharing of EU Directive 2024/1028, Marco decides to change strategy and rent to students.

By switching to the student lease with canone concordato, Marco’s gross rent is capped at €1,100 per month. At first glance, this is a loss. But let’s look closer: his tax (cedolare secca) drops to 10%, i.e., only €110. He no longer has cleaning fees, no more astronomical recurring commissions, and benefits from a 25% reduction on his annual IMU. His monthly net income climbs back to nearly €990, in a completely passive and legal way.

Beyond the purely accounting aspect, the gain in quality of life is invaluable. Marco no longer has to worry about guest reviews, washing bed sheets, or noise nuisance complaints from neighbours. He has signed a 12-month contract with two engineering students, whose parents have acted as guarantors. His property is respected, his income is guaranteed, and he is in perfect compliance with the Agenzia delle Entrate.

How to succeed in your transition to long-term renting with Roomlala?

At Roomlala, we are convinced that homestays and renting rooms to students represent the future of urban property. If you wish to take the leap and abandon the hassles of tourist rentals, the first step is to inform yourself about the canone concordato scales applicable to your Milanese neighbourhood. Host associations (such as UPPI or Confedilizia) can support you in the exact calculation of the authorised rent to benefit from the 10% tax rate.

Next, it is a matter of finding the ideal tenant. This is where our platform comes in. Unlike classic classified ad sites, Roomlala allows you to target a student audience specifically. You can view profiles, exchange with candidates and their parents, and verify their guarantees before even organising a viewing. Our matching system secures your steps and saves you precious time.

Do not forget that you can also opt for renting a room in your own home (homestay). If you have a free room in your primary residence in Milan, renting it to a student via a transitional lease is an excellent way to generate tax-free supplementary income, while creating social links. The 10% cedolare secca rules also apply to renting out rooms, provided local scales are respected.

In summary, the year 2026 marks the great return to reason in the Milanese property market. New regulations should not be seen as a punishment, but as an opportunity to reorganise your assets towards more stability and net profitability. By choosing a student lease, you participate actively in solving the housing crisis for young people, while intelligently protecting your financial interests. Do not wait any longer to publish your listing on Roomlala and find your future tenants for the new academic year!