Thousands of foreign buyers purchase property in Italy every year with one goal in mind: a home they can use themselves and rent out when they are not there. Italy's short-term rental market has grown significantly since 2020, and in the right locations, the numbers work well.
But "Italy" is not one market. A property in rural Calabria and a property in central Florence are entirely different investments — different demand profiles, different yields, different regulations, and very different price points.
This guide breaks down the regions that consistently deliver the best results for Airbnb and short-term rental investors, with real data on occupancy rates, average nightly rates, and what you should expect to pay.
What Makes a Good Airbnb Investment in Italy?
Before looking at specific regions, it helps to understand what drives short-term rental performance in Italy:
Seasonality — Most Italian markets are highly seasonal. Coastal properties may generate 80% of their annual income in June, July and August. Understanding the shoulder season demand in your target area is critical.
Regulatory environment — Italy's short-term rental regulations vary by region and municipality. Some areas — particularly in historic centres — are introducing restrictions on new Airbnb registrations. Always verify current regulations before purchasing with rental intent.
Location within a location — Being in the right region is not enough. A property 45 minutes from Siena with no public transport will underperform relative to one in a walkable village centre, even if the region is equally attractive.
Property type — Stone farmhouses, trulli, and historic apartments consistently outperform generic modern properties on Airbnb. Guests pay a premium for authenticity.
The Top Regions for Airbnb Investment in Italy
1. Tuscany — Established, Premium, Consistent
Tuscany remains Italy's most reliable short-term rental market. Demand is international, year-round in the major centres, and relatively resilient to economic cycles.
Best areas for investment:
- Chianti — the classic wine country corridor between Florence and Siena. Farmhouses and stone apartments with pools achieve exceptional nightly rates (€150–400/night in high season). Supply is constrained by geography and planning regulations.
- Val d'Orcia — UNESCO heritage zone, one of the most photographed landscapes in the world. Smaller supply, very high demand.
- Cortona and surroundings — strong American and British market following decades of cultural interest. Good year-round demand.
The numbers:
- Average occupancy (high season): 85–95%
- Average nightly rate (2-bed property, high season): €180–350
- Typical yield: 4–7% gross on purchase price
Entry price: €150,000–400,000 for a 2-bedroom property with rental potential. Properties at the lower end typically require renovation.
Watch out for: regulatory restrictions in some municipalities, particularly in historic centres. Verify with a local lawyer before purchasing.
2. Puglia — Fast Growth, Strong Numbers, Window Narrowing
Puglia has been the standout performing short-term rental market in Italy over the past five years. International demand has accelerated rapidly, and nightly rates have followed.
Best areas for investment:
- Valle d'Itria (trulli country) — Alberobello, Locorotondo, Cisternino, Martina Franca. Trulli and lamie (traditional stone farmhouses) achieve exceptional occupancy and premium rates due to their uniqueness. Increasingly difficult to find at reasonable prices.
- Ostuni — the "White City", consistently one of Italy's most searched Airbnb destinations. Good year-round demand.
- Salento coast — Otranto, Gallipoli, Santa Maria di Leuca. Strong summer demand, very quiet off-season.
The numbers:
- Average occupancy (high season): 90–100% in prime areas
- Average nightly rate (trullo, high season): €200–500
- Typical yield: 5–9% gross — among the highest in Italy
Entry price: €80,000–250,000 depending on location and condition. Trulli requiring renovation can still be found at €60,000–120,000.
Watch out for: coastal Puglia prices have risen sharply — up 5.8% in 2025 alone. The window for entry at current prices is narrowing, particularly in the Valle d'Itria.
3. Lake Garda — Northern Demand, Extended Season
Lake Garda is Italy's largest lake and one of its most visited destinations — by a market that many UK, US, and Australian buyers overlook: German, Austrian, Dutch, and Swiss tourists who make up the bulk of visitors.
Best areas for investment:
- Western shore (Riviera dei Limoni) — Gargnano, Toscolano-Maderno, Salò. The most scenic stretch, with excellent road and rail connections. Properties with lake views command significant premiums.
- Sirmione — highly popular but increasingly expensive and regulated.
- Riva del Garda — northern end, popular with outdoor sports tourists. Year-round demand.
The numbers:
- Average occupancy: strong April–October, quieter in winter
- Average nightly rate (2-bed apartment with lake view): €150–300
- Typical yield: 4–6% gross
Entry price: €200,000–500,000 for properties with genuine rental potential. More affordable options (€150,000–200,000) exist further from the lake.
Watch out for: short-term rental regulations are tightening in some Garda municipalities. Verify current rules before purchasing.
4. Sicily — Emerging Market, Strong Growth Trajectory
Sicily is where the smart money is starting to look. International tourism has grown significantly since 2022, nightly rates are rising, and entry prices are still relatively low compared to Tuscany or Puglia.
Best areas for investment:
- Taormina and surroundings — Italy's most famous Sicilian destination. Excellent demand but limited supply drives strong rates. Premium entry prices.
- Val di Noto (baroque south-east) — Ragusa Ibla, Noto, Modica, Scicli. UNESCO heritage zone, growing international profile, more affordable than Taormina.
- Palermo — urban short-term rental market with strong year-round demand from cultural tourists.
The numbers:
- Average occupancy (high season): 85–95% in prime areas
- Average nightly rate (2-bed property, Taormina area): €150–350
- Typical yield: 4–7% gross
Entry price: €80,000–200,000 depending on area and condition. Sicily still offers some of the best value per square metre of any Italian region with genuine Airbnb potential.
Watch out for: Sicily's infrastructure can be challenging — transport connections, utility reliability, and finding trustworthy local management are more complex than in Tuscany or Puglia.
5. Umbria — The Underrated Option
Umbria is where Tuscany was twenty years ago. International tourism is growing, prices are still significantly below comparable Tuscan markets, and the lifestyle fundamentals — medieval hill towns, outstanding food and wine, dramatic landscapes — are identical.
Best areas for investment:
- Orvieto — dramatic setting, excellent train connections to Rome (1h15), growing international profile.
- Spoleto — proper city with year-round cultural events including the famous Festival dei Due Mondi.
- Lake Trasimeno area — emerging, particularly popular with cycling tourists.
The numbers:
- Average occupancy: moderate but growing — typically 65–80% in summer
- Average nightly rate (2-bed property): €100–200
- Typical yield: 3–5% gross — lower than Tuscany or Puglia, but entry prices are significantly lower
Entry price: €80,000–180,000 for a 2-bedroom property with renovation potential.
Watch out for: Umbria's short-term rental market is less mature than Tuscany or Puglia. Demand exists but is less consistent — local management and marketing quality matter more here.
What About Judicial Auctions for Airbnb Investment?
Italy's judicial auction system — court-ordered sales of seized properties — offers the possibility of buying at 30–60% below market value. For Airbnb investors, this creates an interesting dynamic: buy at a significant discount, renovate to a high standard, and enter the rental market with a much lower cost base.
Our clients have used this approach successfully:
- Angela & Nick (Washington DC) bought a townhouse in Val d'Orcia for €36,000 against a market value of €75,000
- Cindy (New York) bought in Chianciano Terme, Tuscany for €70,000 against a market value of €140,000
Both properties are now generating short-term rental income.
The trade-off: auction properties often require renovation, and managing a renovation in Italy from abroad adds complexity and cost. Budget accordingly.
Key Questions to Answer Before You Buy
1. What are the local regulations?
Short-term rental rules vary significantly by municipality. Some require registration, others impose night caps or restrict new licences in historic zones. Always verify with a local lawyer before purchasing with rental intent.
2. Who will manage the property?
Unless you live in Italy, you will need a local property manager. Management fees typically run 20–30% of rental income. Factor this into your yield calculation.
3. What is the realistic occupancy outside high season?
High season occupancy is rarely the problem. The question is whether the property generates meaningful income in April, May, September and October — or whether you are dependent on July and August alone.
4. What are the tax implications?
Italy's cedolare secca flat tax (21% on short-term rental income for non-residents) simplifies the tax picture considerably. However, the interaction with your home country tax obligations requires professional advice.
The Bottom Line
The best Airbnb investment in Italy is rarely the cheapest property in the most famous location. It is the right property — in the right micromarket, at the right price, with the right management in place.
Tuscany and Puglia offer the most established markets and the strongest numbers, but entry prices reflect this. Sicily and Umbria offer the best combination of current affordability and future upside. Lake Garda suits buyers targeting the Northern European market.
Wherever you buy, the fundamentals matter more than the postcode: authenticity, walkability, and quality of fit-out consistently outperform generic properties regardless of location.