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 rental platforms you use. Understanding these obligations helps you stay compliant with tax regulations in your jurisdiction.

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. This applies regardless of whether you manage one property or multiple listings.

Rental-related expenses such as utilities, repairs, maintenance, and platform 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 your specific jurisdiction.

Keep detailed records of earnings, expenses, and supporting invoices for each property and booking. This documentation is essential should you face an audit or need to verify your reported income.

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 is a directive that requires platforms to collect and share detailed host income information with EU tax authorities. This reporting began in 2023 and applies to all hosts operating in the European Union.

As a rental platform, we are required to report the following information to tax authorities:

• Identification data of the host, including Taxpayer Identification Number, address, date of birth, and any company's Commercial Registration Number
• Identification data of the property, including the complete address
• Total revenue earned by you as a host
• Fees, commissions, or taxes per property
• Total number of days booked per property

You can download your tax reporting summary directly from your account. To access this:

1. Log in to your account
2. Click on your profile menu in the top right
3. Go to Account settings
4. Scroll down to Your reports and certificates

If you also need your booking invoices, you can download them from the Invoice section under the Financial tab on the left-side menu.

Cedolare Secca (Italy)

The Cedolare Secca is a substitute flat-rate tax for rental income in Italy, including income earned via rental platforms. It simplifies the tax treatment of residential rental properties.

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. This automatic withholding helps ensure compliance with Italian tax law.

When We Withhold Tax

For private hosts without a VAT number or commercial registration, we apply the Cedolare Secca withholding tax by default. This automatic withholding remains in place unless you are considered a professional host. You may change this status by proactively confirming that you have 3 or more properties, or by providing a valid VAT number or commercial registration number.

Professional hosts with proper business registration can often benefit from different tax treatment, so it is important to update your host profile if your circumstances change.

Important Considerations

Filing incorrect or incomplete tax returns can result in audits and fines imposed by tax authorities. 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 our platform or other rental services about your tax information, respond promptly and supply any required documentation. Failure to do so may result in withholding of funds or account restrictions.

For questions or concerns about your tax reporting, you can reach out to our support team through the Assistant available in your account.

Summary

Hosts must declare all rental income and comply with local and platform-specific tax reporting rules. As a rental platform, we report host earnings to authorities under DAC7 and local regulations such as Italy's Cedolare Secca.

To maintain proper tax compliance:

• Keep detailed records of all income and rental-related expenses
• Download your tax reporting summary from your account
• Save booking invoices and supporting documentation
• Consult a local tax advisor for guidance specific to your region and circumstances
• Stay updated on regional compliance changes

By staying organized and proactive with your tax obligations, you can ensure smooth operations and maintain compliance with tax authorities in your jurisdiction.