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 with 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 requirement applies regardless of whether you use intermediary platforms or manage bookings independently.

Income Declaration

Your rental activity must be reported to tax authorities according to the regulations in your country or region. Many jurisdictions treat rental income as either personal or business income, with classification often depending on specific criteria such as:

• The number of properties you own
• Your total rental income volume
• The number of days your properties are rented annually

In many regions, registering as a business becomes a legal obligation rather than a voluntary choice once certain thresholds are met. We recommend consulting with a local tax professional to understand how your specific situation is classified.

Deductible Expenses

Rental-related expenses may be deductible from your taxable income, depending on the tax rules in your country. Common deductible expenses include:

• Utilities
• Repairs and maintenance
• Management fees
• Insurance premiums
• Cleaning costs

The specific expenses you can deduct depend on your tax residency, legal entity type, and the applicable tax regime in your jurisdiction. A tax professional can guide you on which costs are eligible for deduction in your particular situation.

Record Keeping

Maintain detailed records of all earnings, expenses, and supporting documentation for each property and booking. These records should include:

• Booking confirmations and revenue statements
• Invoices and receipts for expenses
• Platform payment records
• Communication with guests regarding payments

Proper documentation is essential in case of tax audits or inquiries from authorities.

Platform-Specific Tax Reporting Requirements

DAC7 Directive (EU-wide)

DAC7 is a European Union directive that requires platforms to collect and share detailed host income information with EU tax authorities. This reporting requirement began in 2023.

Under DAC7, platforms like Holidu are required to report the following information to tax authorities:

• Host identification data including Taxpayer Identification Number, address, date of birth, and commercial registration number where applicable
• Property identification data including complete address
• Total revenue earned by the host
• Fees, commissions, and taxes per property
• Total number of days booked per property

As a host, you may receive annual reports from platforms summarizing the information sent to tax authorities. While these reports can support your personal tax return preparation, they do not replace your obligation to file your own tax return.

Cedolare Secca (Italy)

The Cedolare Secca is a substitute flat-rate tax for rental income in Italy, including income earned through rental platforms. This simplified tax regime applies to hosts meeting specific criteria.

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 Tax Withholding Applies

Tax withholding under Cedolare Secca is applied by default to private hosts without a VAT number or commercial registration. This automatic withholding remains in place unless you are considered a professional host.

You are considered a professional host if you:

• Proactively confirm that you own 3 or more properties, or
• Provide a valid EU VAT number, or
• Provide a commercial registration number

If you meet any of these criteria, contact support through the Assistant to update your host classification and adjust your tax withholding status.

How to Access Your Tax Return Summary

You can download your tax return summary directly from your Holidu account by following these steps:

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 & Certificates
4. Download your tax summary or annual report

Downloading Your Booking Invoices

If you need individual booking invoices in addition to your tax summary, you can download these from the Invoice section under the Financial tab in the left-side menu of your account.

Important Considerations

Accuracy and Completeness

Filing incorrect or incomplete tax returns can result in audits, penalties, and fines. Ensure that all income from all sources is properly reported and that calculations are accurate.

Regulatory Changes

Tax regulations and reporting obligations may change annually. Stay informed about regulatory updates in your country or region to ensure ongoing compliance with current requirements.

Responding to Tax Authority Requests

If you receive requests or notifications from Holidu or other platforms about your tax information, respond promptly and supply any required documentation. Failure to do so may result in withholding of funds or account restrictions.

Summary

To maintain proper tax compliance as a rental host:

• Declare all rental income according to local and platform-specific tax reporting rules
• Keep comprehensive records of earnings and expenses for each property
• Download your earning statements and tax summaries from your Holidu account
• Save all expense receipts and supporting documentation
• Consult with a local tax advisor for guidance specific to your region and situation
• Stay updated on regional compliance changes and tax regulation updates
• Respond promptly to any requests for tax information or documentation

For assistance with accessing your tax reports or understanding your specific tax obligations, use the Assistant feature in your Holidu account to connect with support.