AirBnB will pay 576 million Euros to Italian Revenue Service for due taxes

Airbnb pays 576 million euros and settles its accounts with the Italian tax authorities for the period 2017–2021. The giant has reached an agreement with the Internal Revenue Service regarding withholding tax on non-professional hosts’ income from short-term rentals (“cedolare secca”) in relation to tax years 2017 to 2021, for a total payment of 576 million euros. This is what the U.S.-based short-let platform announced in a note after it was subject to a Council of State ruling in October regarding the collection and payment of the dry coupon on short rentals by booking portals.

“Airbnb will not seek to recover withholding taxes from hosts for this period. We are also continuing constructive discussions with the authorities regarding the period 2022–2023,” reads the note. – Italy is an important market for Airbnb. Today’s agreement means we can focus on continuing our collaboration with the Italian authorities on taxes, rules for short rentals, and sustainable tourism, for the benefit of hosts and guests.”

There are thousands of hosts in Italy; more than three-quarters of them, the platform recalls, have only one listing; the typical host earned just over 3,500 euros last year. About two-thirds (59 percent) said the income made from hosting allows them to make ends meet. Fifteen percent say they work in health care, education, or public administration. The vast majority of hosts on Airbnb in Italy are ordinary people who rely on the platform to supplement their household income. “We hope that the agreement with the Internal Revenue Service and recent regulatory changes will provide clarity on the rules regarding short rentals for years to come,” the company concludes.