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 and maintains the integrity of your rental business.

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 in your jurisdiction.

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 the applicable tax regime. We encourage hosts to consult a tax professional to understand which costs are eligible for deduction in their specific jurisdiction.

Keep detailed records of earnings, expenses, and supporting invoices for each property and booking. This documentation is essential should you need to substantiate your tax filing or respond to inquiries from tax authorities.

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 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 to tax authorities:

• 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 complete address)
• Total revenue earned by the host
• Fees, commissions, or tax per property
• Total number of days booked per property

You may receive information from Holidu summarizing earnings data. While this information can support your personal tax return preparation, it does not replace your obligation to file your tax return in accordance with local regulations.

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 we withhold tax

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 the host is considered a professional host by proactively confirming to have 3 or more properties, or by providing a valid EU VAT number or commercial registration number.

How to Access Your Booking and Financial Information

Download Your Tax Return Summary

To access your tax information from Holidu:

1. Log in to your Holidu account
2. Go to Account by clicking on the top right menu
3. Scroll down to Your reports and certificates

Download Your Booking Invoices

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

Important Considerations

Filing incorrect or incomplete tax returns can result in audits and other consequences. Tax regulations and reporting obligations may change annually, so it is important to 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 supply any required documentation. Failure to do so may result in withholding of funds or account restrictions.

Consult with a local tax professional to understand your specific obligations. Tax laws vary significantly by jurisdiction, and a qualified advisor can help ensure you meet all requirements applicable to your situation.

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.

To stay compliant:

• Keep detailed records of all earnings and expenses
• Download your earning statements and invoices from your Holidu account
• Save all expense receipts and supporting documentation
• Consult a local tax advisor for guidance specific to your region
• Stay updated on regulatory changes in your jurisdiction

If you have additional questions or need assistance accessing your financial information, use the support options available in your Holidu account.