Million-dollar hit to Airbnb in Italy for tax evasion

11-11-23

New setback for Airbnb in Italy. The country's Financial Guard has announced the seizure of €779 million from the accommodation platform for allegedly failing to meet its tax obligations.

As reported by Expansion, the investigation by the Prosecutor's Office has detected that Airbnb evaded the payment of withholdings of up to 21% in tax for short-term rentals between January 2019 and January 2023. This percentage should have been applied on the amount paid by tenants for advertising on the platform, which was €3.7 billion.

The injunction document collects "in the challenge of the crime of omission to declare the tax". An act that also punishes the "economic damage caused to other operators in the sector by the non-payment of the tax due".

In addition to the aforementioned seizure, the Italian justice points to three former managers of the platform between 2017 and 2021 as possible culprits.