Tax Return Guide for Hosts: How to Declare Your Rental Income

As a host, you are responsible for declaring your rental income correctly and meeting the tax return requirements set by your local tax authorities and the platforms you use. Understanding these obligations helps you stay compliant and avoid issues with your tax filings.

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.
• 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 applicable tax regime. We recommend consulting a tax professional to confirm which costs are eligible in your jurisdiction.
• Keep detailed records of earnings, expenses, and supporting invoices for each property and booking.
• Many countries treat rental income as personal or business income and require you to declare it, even when you use intermediary platforms. Local regulations often determine whether your activity is classified as 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 platforms such as Holidu to collect and share detailed host income information with EU tax authorities, starting from 2023.
• Holidu is required to report the following information:
  • Identification data of the host, including Taxpayer Identification Number, address, date of birth, and a company's Commercial Registration Number
  • Identification data of the property, including the complete address
  • Total revenue earned by the host
  • Fees, commissions, or tax per property
  • Total number of days booked per property

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.

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

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

• Incomplete or incorrect tax returns can lead to audits and compliance issues with your tax authority. Accurate reporting is essential.
• Tax regulations and reporting obligations may change from year to year. Keep up with regulatory updates in your country.
• If you receive requests or notifications from Holidu or other platforms about your tax information, respond promptly and provide any required documentation to avoid withholding of funds or account restrictions.

Summary

• Hosts must declare all rental income and comply with local and platform-specific tax reporting rules.
• Platforms like Holidu report host earnings to authorities under DAC7 and local regulations, such as Italy's Cedolare Secca.
• Keep records, download your earnings statements, save expense receipts, and consult a local tax advisor for guidance specific to your region.
• Stay updated on regional compliance changes to keep your tax filings accurate.
• You can download your tax return summary directly from your Holidu account.

Need More Help?

If you have questions about your tax return or reporting requirements, reach out through the Assistant in your Holidu account.