Tax Return

As a host, you are responsible for properly declaring your rental income and meeting the tax reporting requirements set by both local authorities and the platforms you use. Understanding these obligations helps you stay compliant and ensures you meet all legal requirements.

General Tax Return Obligations

All income earned from short-term rentals must be reported on your annual tax return, in line with local tax laws in your jurisdiction.

Rental-related expenses such as utilities, repairs, and management fees may be deductible, depending on the tax rules in your country. What you can deduct depends on your tax residency, legal entity, and the applicable tax regime. We encourage hosts to consult a tax professional to understand which costs are eligible for deduction in their specific jurisdiction.

It is essential to keep detailed records of earnings, expenses, and supporting invoices for each property and booking. These records will support your tax filing and help demonstrate compliance with local regulations.

Many countries treat rental income as personal or business income and require you to declare it even if you use intermediary platforms. Local regulations often determine whether your activity is classified as 'professional' or 'non-professional' based on specific criteria such as the number of properties, income volume, or days rented. In many jurisdictions, registering as a business is a legal obligation rather than a voluntary choice once these thresholds are met.

Platform-Specific Tax Reporting Requirements

DAC7 (EU-wide Directive)

DAC7 requires platforms to collect and share detailed host income information with EU tax authorities, starting from 2023. Holidu is required to report the following information to relevant tax authorities:

• Identification data of the host, including Taxpayer Identification Number, address, date of birth, and company Commercial Registration Number where applicable
• Identification data of the property, including complete address
• Total revenue earned by the host
• Fees, commissions, or tax per property
• Total number of days booked per property

You can download your DAC7 report directly from your Holidu account to support your personal tax return preparation. However, this report does not replace your obligation to file a complete tax return with your local authorities.

Cedolare Secca (Italy)

The Cedolare Secca is a substitute flat-rate tax for rental income in Italy, including income earned through platforms. Italian platforms and international platforms operating in Italy may be required to withhold part of the tax and remit it to Italian authorities on behalf of hosts.

We apply the Cedolare Secca withholding tax by default to private hosts. This automatic withholding remains in place unless the host is considered a professional host by proactively confirming to have 3 or more properties, or by providing a valid EU VAT number or commercial registration number.

How to Download Your Tax Return Summary

To access your tax return summary and reports:

1. Log in to your Holidu account
2. Click on your profile menu in the top right corner and select Account
3. Scroll down to the section labeled "Your reports and certificates"
4. Download your DAC7 or Certificazione Unica report as needed

Downloading Your Booking Invoices

If you need your booking invoices in addition to your tax reports, you can download them from the Invoice section. Navigate to the Financial tab on the left-side menu of your account to access all booking-related invoices.

Important Considerations

Filing incomplete or inaccurate tax returns can result in audits and other consequences. Tax regulations and reporting obligations may change annually, so it is important to keep up with regulatory updates in your country or region.

If you receive requests or notifications from Holidu or other platforms about your tax information, respond promptly and supply any required documentation. This helps ensure smooth processing and maintains your account in good standing.

Summary

Hosts must declare all rental income and comply with local and platform-specific tax reporting rules. Keep detailed records of all earnings and expenses, download earning statements from your account, and retain receipts for all rental-related costs. Consult a local tax advisor for guidance specific to your region and jurisdiction.

For questions or assistance with your account, please use the support assistant available through your Holidu account.