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 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 use rental platforms or manage bookings independently.

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

Keep detailed records of all earnings, expenses, and supporting invoices for each property and booking. These records are essential for tax filing and may be requested by tax authorities during an audit.

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

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

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

As a host, you should keep your account information up to date to ensure accurate reporting. While platforms may provide summaries of information reported to authorities, these reports do not replace your obligation to file your own tax return with the relevant authorities.

Cedolare Secca (Italy)

The Cedolare Secca is a substitute flat-rate tax for rental income in Italy, including income earned through rental 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 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 have 3 or more properties, or if you provide a valid EU VAT number or commercial registration number.

If your status changes, you can update your account information to reflect whether you now qualify as a professional host.

How to Download Your Tax Information

To access your tax return summary and financial records:

1. Log in to your account
2. Click on the menu in the top right corner and select Account
3. Scroll down to the section labeled Your reports and certificates
4. Download your tax report for the relevant year

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

What Information Should You Provide

To ensure accurate tax reporting on rental platforms, keep the following information current in your account:

• Your full legal name and date of birth
• Your current residential address
• Your Taxpayer Identification Number
• Your VAT number, if applicable
• Your commercial registration number, if applicable
• The complete address of each property you rent

If you receive any requests or notifications from rental platforms asking for updated tax information or documentation, respond promptly and provide the required details. Failing to do so may result in withholding of funds or account restrictions.

Record-Keeping Best Practices

Maintain organized records for tax purposes:

• Save all booking confirmations and invoices
• Keep receipts for all rental-related expenses
• Document repair costs, cleaning expenses, and property maintenance
• Record platform fees and commissions withheld
• Track any tax payments made throughout the year

These records should be kept for at least the period required by your local tax authority, which is typically several years.

Important Considerations

Filing incomplete or inaccurate tax returns can result in audits and financial consequences. Tax regulations and reporting obligations may change annually, so stay informed about regulatory updates in your country.

Tax laws vary significantly by jurisdiction, and what applies in one country may not apply in another. If you have properties in multiple countries, you may need to comply with tax requirements in each jurisdiction.

Consult with a local tax advisor who understands short-term rental regulations in your area. They can provide guidance specific to your situation and help ensure you are meeting all applicable requirements.

Summary

Key points to remember:

• Declare all rental income in accordance with local tax laws
• Keep detailed records of earnings and expenses
• Understand whether rental activity is classified as professional or non-professional in your jurisdiction
• Be aware of platform-specific reporting requirements such as DAC7 and Cedolare Secca
• Download your tax reports from your account for reference during tax filing
• Respond promptly to any information requests from rental platforms
• Consult a tax professional for guidance on deductions and compliance in your region
• Stay updated on changes to tax regulations that may affect your rental activity

For assistance with your account or questions about downloading your tax information, use the Assistant available in your account.