In its standoff with Airbnb, Italy has decided to move up a gear by attacking the company’s finances. Authorities have ordered the seizure of more than 779 million euros from the rental platform as part of an investigation into tax evasion, financial police said on Monday.
The Milan public prosecutor’s office accuses Airbnb of not having collected a tax on rental income received by owners between 2017 and 2021, according to the same source, and which must be remitted to the Italian tax authorities.
Airbnb “surprised and disappointed”
Airbnb for its part said it was “surprised and disappointed” by the seizure, claiming to have engaged in “active discussions with the Italian tax authorities since June 2023 to resolve this matter”. “We believe that we have acted in accordance with the law and we intend to assert our rights,” the platform said.
In its press release, the group further specifies that it has challenged in court the 2017 Italian law which requires it to collect a 21% tax on income from short-term rentals. Airbnb is also once again attacking a law that brings, according to him, “complexity and uncertainty”, ensuring that it “continues to believe” that it does not apply to him.
At the end of October, the Italian government affirmed its intention to strengthen the fight against short-term rentals which escape taxation and to increase taxation on owners who offer more than one apartment on platforms such as Airbnb.
New rules in the 2024 draft budget
An amendment to the 2024 draft budget provides for the creation of a “national identification code” associated with tourist accommodation which will make it possible to track down those which have not been declared to the tax authorities, explained the vice-president of the Council Antonio Tajani, following a summit meeting of the government coalition. “Thus, there will be transparency and the entire system will be regularized,” he argued, adding that this budgetary measure “will also increase state revenue” and will contribute to “reducing the burden tax” of families. As for the planned increase in the tax rate, “it will only be applied from the second apartment rented by each owner, so it will not be for everyone”.
Owners of short-term rental apartments can currently opt for a flat rate of 21%. This rate will rise to 26% for other apartments rented for a period of less than 30 days.