Tax Return Guide for Hosts: Declaring Rental Income and Meeting Platform Reporting Requirements

As a host, you are responsible for properly declaring your rental income and meeting the tax reporting requirements set by both local tax authorities and the platforms you use. Understanding these obligations helps you stay compliant, keep accurate records, and file your tax return with confidence.

General Tax Return Obligations

• All income earned from short-term rentals must be reported on your annual tax return, in line with the tax laws of your country.
• Rental-related expenses, such as utilities, repairs, and management fees, may be deductible depending on the tax rules in your country. Which costs you can deduct depends on your tax residency, your legal entity, and the applicable tax regime. We recommend consulting a tax professional to understand which costs are eligible in your jurisdiction.
• Keep detailed records of earnings, expenses, and supporting invoices for each property and each booking.
• Many countries treat rental income as personal or business income and require you to declare it, even if you use an intermediary platform. Local regulations often classify your activity as either "professional" or "non-professional" based on criteria such as the number of properties, income volume, or days rented. In many jurisdictions, registering as a business becomes a legal obligation once these thresholds are met.

Platform-Specific Tax Reporting Requirements

DAC7 (EU-wide Directive)

• DAC7 requires digital platforms, such as Holidu, to collect and share detailed host income information with EU tax authorities. This applies from 2023 onward.
• Holidu is required to report the following information for hosts and properties:
  • Identification data of the host, including Taxpayer Identification Number, address, date of birth, and, for companies, the Commercial Registration Number
  • Identification data of the property, including the complete address
  • Total revenue earned by the host
  • Fees, commissions, or taxes per property
  • Total number of days booked per property
• This information is reported to the tax authorities. Holidu does not send annual reports to hosts. Instead, you can download your tax return summary directly from your account at any time (see the steps below). The summary can support your personal tax return preparation, but it does not replace your obligation to file.

Cedolare Secca (Italy)

• The Cedolare Secca is a substitute flat-rate tax for rental income in Italy, including income earned via 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.

When Do 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 can qualify as a professional host by proactively confirming that you have 3 or more properties, or by providing a VAT number or commercial registration number.

How to Download Your Tax Return Summary

1. Log in to your Holidu account.
2. Go to Account by clicking the top right menu.
3. Scroll down to Your reports & certificates.
4. Download your DAC7 or Certificazione Unica report, depending on your country.

Need Your Booking Invoices?

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

Important Considerations

• Incorrect or incomplete tax returns may lead to audits or additional tax obligations. Review your figures carefully before filing.
• Tax regulations and reporting obligations may change from year to year. Stay up to date with regulatory changes in your country.
• If you receive a request or notification from Holidu or another platform about your tax information, respond promptly and provide any required documentation. This helps avoid delays in payouts or account restrictions.

Need Help?

If you have questions about your tax return or your reporting obligations, please use the Assistant in your Holidu account. For tax-specific advice tailored to your situation, consult a local tax advisor.

Summary

• Hosts must declare all rental income and comply with local and platform-specific tax reporting rules.
• Holidu reports host earnings to tax authorities under DAC7 and local regulations, such as Italy's Cedolare Secca.
• Keep records, save expense receipts, and consult a local tax advisor for guidance specific to your region.
• Stay informed about regional compliance changes to keep your tax return accurate.
• You can download your DAC7 or Certificazione Unica report directly from your Holidu account at any time.