Amalfi Coast · Investment Analysis

Amalfi Coast Rental Yield for Americans: What the Numbers Actually Look Like After Costs

Every Amalfi Coast property pitch leads with the peak-week rental rate. A three-bedroom Positano villa at 3,500 EUR per night in August sounds compelling until you build the full-year cost model. This page does that work: gross revenue assumptions grounded in realistic occupancy, every cost line itemised, and net yield expressed as a percentage of purchase price. The conclusion is consistent across all three towns: the Amalfi Coast works as a personal use asset with partial cost offset, not as a yield investment.

The Occupancy Reality: What Drives Gross Revenue

The Amalfi Coast rental season is genuinely compressed. The demand concentration into July and August is more extreme here than in Tuscany, Lake Como, or even most of Sicily. Understanding the real seasonal distribution is the foundation of any honest yield model.

Period	Weeks	Demand Level	Rate vs Peak
Peak (late June to August)	8 to 10	Maximum demand	100%
High shoulder (May, early June, September)	5 to 6	Strong	60 to 75%
Low shoulder (October, April)	3 to 4	Moderate	35 to 50%
Off-season (November to March)	20 to 21	Minimal	15 to 25% (if lettable)

Well-managed Positano properties typically achieve 8 to 10 weeks of peak occupancy and 6 to 8 weeks of shoulder occupancy per year. Total gross revenue for a three-bedroom sea-view villa at these occupancy levels: 65,000 to 90,000 EUR annually. The gross figures used in each model below are built from these occupancy assumptions, not from peak-week rates multiplied out.

The Full Cost Stack: What Gets Deducted

Professional Management (25 to 35%)

Professional short-term rental management on the Amalfi Coast runs higher than the Italian national average. The compressed season requires intensive attention during peak weeks. Step-access properties require porterage coordination for guest luggage, which adds staff cost. Guest communication and concierge services that are optional elsewhere are expected on the coast. Budget 25% as a minimum; step-access Positano properties with full concierge service often run 30 to 35%.

Cedolare Secca Income Tax (21%)

Short-term rentals (contracts under 30 days) can elect the cedolare secca flat tax regime at 21% on gross rental revenue. This is generally the optimal election for non-resident Americans letting their Italian property -- it replaces standard progressive IRPEF rates and eliminates the need to include rental income in the ordinary Italian income tax return. The election is made annually through your Italian commercialista.

IMU (Annual Property Tax)

IMU is calculated on cadastral value, not market value. For a 2M EUR Positano property, the annual IMU typically runs 4,000 to 6,000 EUR depending on the specific comune and the property's cadastral classification. Step-access villas in historic Positano often have cadastral values that run well below market -- which reduces IMU relative to what the purchase price might suggest. Verify the specific rendita catastale for any property under consideration. Full IMU mechanics at imu-property-tax-italy-americans.

Maintenance (1.0 to 1.5% of Asset Value)

This is the most severely underestimated line in Amalfi Coast ownership. The salt-air coastal environment accelerates corrosion of ironwork, light fixtures, and external finishes. Humidity causes plasterwork and woodwork issues that require more frequent attention than inland properties. External terraces and swimming pools (where present) have elevated maintenance demands. Step-access properties add a further cost layer: every maintenance job -- plumber, electrician, appliance delivery -- requires porterage coordination. Budget 1.25% of asset value annually as a working assumption.

Three-Town Yield Model

Model 1: Positano Villa (2M EUR, 3 Bedrooms)

Line Item	Conservative	Optimistic
Gross Rental Revenue	65,000 EUR	90,000 EUR
Management (25%)	(16,250 EUR)	(22,500 EUR)
Cedolare Secca (21%)	(13,650 EUR)	(18,900 EUR)
IMU	(5,000 EUR)	(5,000 EUR)
Maintenance (1.25%)	(25,000 EUR)	(25,000 EUR)
Net Annual Return	5,100 EUR (0.26%)	18,600 EUR (0.93%)

Model 2: Praiano Villa (700K EUR, 3 Bedrooms)

Line Item	Conservative	Optimistic
Gross Rental Revenue	38,000 EUR	55,000 EUR
Management (25%)	(9,500 EUR)	(13,750 EUR)
Cedolare Secca (21%)	(7,980 EUR)	(11,550 EUR)
IMU	(2,500 EUR)	(2,500 EUR)
Maintenance (1.25%)	(8,750 EUR)	(8,750 EUR)
Net Annual Return	9,270 EUR (1.32%)	18,450 EUR (2.64%)

Note: Praiano's optimistic scenario reflects a property with strong road access, good management, and a well-positioned rental listing. Not all Praiano properties achieve this.

Model 3: Ravello Apartment with View (1.2M EUR, 3 Bedrooms)

Line Item	Conservative	Optimistic
Gross Rental Revenue	40,000 EUR	60,000 EUR
Management (22%)	(8,800 EUR)	(13,200 EUR)
Cedolare Secca (21%)	(8,400 EUR)	(12,600 EUR)
IMU	(3,500 EUR)	(3,500 EUR)
Maintenance (1.0%)	(12,000 EUR)	(12,000 EUR)
Net Annual Return	7,300 EUR (0.61%)	18,700 EUR (1.56%)

Note: Ravello management fees are lower (22%) due to road access and simpler logistics. Maintenance runs 1.0% reflecting better protection from coastal salt exposure at elevation.

What These Numbers Actually Mean

The correct framing for Amalfi Coast rental income is not yield. It is carrying cost offset. A Positano villa generating 10,000 EUR net per year on a 2M EUR asset is not an investment return -- it is a reduction in the annual cost of owning and using the property. The question is not "what yield do I get?" but "how much does it cost me to own this asset each year, and how much does rental activity reduce that cost?"

For a 2M EUR Positano property, total annual carrying costs (IMU, maintenance, insurance, management overhead, utilities, Italian accountant fees) run approximately 35,000 to 50,000 EUR before any rental income. Rental activity reduces that net cost materially -- to 15,000 to 45,000 EUR depending on performance -- but does not eliminate it. This is the honest financial model for Amalfi Coast ownership.

The US Reporting Dimension

American owners of Italian rental property have US reporting obligations that exist regardless of Italian tax elections. Rental income from Italian property must be reported on the US federal return (Schedule E for rental activity). The cedolare secca paid in Italy may be claimed as a foreign tax credit on Form 1116, reducing the US tax liability on the same income. The interaction between Italian rental taxation and US obligations requires a US CPA with international real estate experience -- this is not a standard tax return situation.

Frequently Asked Questions