Short-Term Rentals: The Council of State Protects Property Owners.
Short-Term Rentals: The Council of State Protects Property Owners. What’s Really Changing?
A recent ruling by Italy’s Council of State (no. 2928/2025) has brought new attention to a highly debated topic: the right of private citizens to rent out their homes for short periods. The case originated in Sirmione, a popular tourist destination in Lombardy, where the local municipality had imposed strict limitations on non-professional short-term rentals. But the administrative court disagreed.
What Did the Council of State Decide?
In short, the judges annulled the municipal order, stating that a local administration cannot arbitrarily ban or restrict short-term rentals carried out by private individuals without a VAT number. According to the Council of State, these activities are not considered professional hospitality businesses (such as hotels or licensed B&Bs) and cannot be regulated as such.
A Key Principle: Freedom of Property Use
At the heart of the ruling is the protection of private property rights. Anyone who owns a home has the right to decide how to use it, including renting it out for short stays—provided they comply with tax and safety regulations. By imposing strict limitations, the Municipality of Sirmione essentially stripped citizens of this right, without a proper legal basis at the national level.
What Does This Mean for Other Municipalities?
This ruling isn’t an isolated case. It sends a strong message to all local administrations that have been trying to restrict short-term rentals, often linking them (not always justifiably) to housing shortages or the decline of long-term residential availability in tourist-heavy areas.
The Council of State has clearly stated that any restrictions must come from national or regional legislation, and cannot be enforced arbitrarily at the municipal level.
A Victory or a Warning Sign?
For many property owners, the decision is an important victory: it reaffirms the freedom to manage private real estate without being automatically classified as tourism operators.
However, critics remain. Some mayors and housing advocates argue that short-term rentals are worsening the housing crisis, particularly in city centers with high tourist demand.
The Council of State’s decision will likely set a precedent and spark further political debate. For now, the message is clear: non-professional short-term rentals remain lawful, and local governments cannot ban them with unilateral regulations.
