The 2026 Italian Budget Law is introducing significant changes to the short-term rental sector — changes that could reshape the property market in Puglia, particularly in Salento.
According to a recent report by Il Sole 24 Ore (original article: https://www.ilsole24ore.com/art/affitti-brevi-rischio-stop-tre-milioni-dipendenti-pubblici-e-professionisti-AIKGWWbB), the threshold at which short-term rental activity is considered a business has been lowered from five to three properties rented within the same year.
Once this threshold is exceeded, property owners must open a VAT position (Partita IVA), comply with stricter accounting requirements, and may face professional incompatibility restrictions.
While this represents a challenge for many Italian property owners, it could create new opportunities for international investors.
Why Many Italian Owners May Exit the Short-Term Rental Market
Under Italian law, certain professional categories cannot run a business activity.
These include:
– Full-time public employees
– Lawyers
– Chartered accountants
– Notaries
For these groups, managing three or more short-term rental properties could now create legal or professional conflicts.
Even Confedilizia has raised concerns about the reform. Its president, Giorgio Spaziani Testa, highlighted the potential impact on small property owners.
As a result, many Italian owners — especially those with multiple holiday homes — may decide to:
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Reduce the number of their rental properties
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Switch to long-term rentals
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Or sell part of their real estate portfolio
What This Means for International Investors?
For foreign buyers, the scenario may be very different.
If Italian owners face increasing regulatory and professional restrictions, a significant number of properties — already renovated and operating as holiday rentals — could enter the sales market.
This may lead to:
✔Increased supply of ready-to-rent holiday homes
✔Properties already structured for short-term rentals may become available for purchase.
✔More competitive pricing
✔A higher volume of listings could calm price growth, creating attractive entry points for international investors.
✔Turnkey investment opportunities
Many of these homes are fully furnished, professionally renovated, and located in high-demand tourist areas.
Strategic positioning in a resilient tourism market
Salento area in Puglia remains one of Southern Italy’s most desirable destinations for European and international tourism.
Why Salento Remains Attractive for Global Buyers
Salento continues to offer:
Strong seasonal tourism demand
Competitive property prices compared to other Mediterranean destinations
High lifestyle appeal (sea, historic towns, gastronomy, culture)
Growing international visibility
With potential regulatory pressure affecting local multi-property owners, international investors may find a unique window of opportunity.
A Market Transition: From Local Fragmentation to Structured Investment
The new regulatory framework could gradually transform the Salento short-term rental market from a fragmented model dominated by small private owners to a more structured environment. For foreign investors this may represent:
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Easier market entry
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Stronger negotiation power
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Access to well-positioned, income-ready properties
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Medium- to long-term capital appreciation potential
Thinking of Buying a Holiday Rental Property in Salento?
If you are considering investing in Puglia — particularly in Salento — the coming months could offer strategic opportunities.
We assist international buyers with:
✔ Property sourcing
✔ Market analysis and price negotiation
✔ Due diligence support
✔ Investment feasibility studies
✔ Full assistance throughout the purchase process
If you would like to explore current opportunities or understand potential rental returns, feel free to contact us for a confidential consultation.
Do you want to sell your property? Please contact us for a valuation!
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