Italy to Crack Down on Airbnb’s Tax Evasion with Massive $835 Million Seizure

Airbnb’s Tax Evasion

An Italian judge has ruled that €779.5m be seized from Airbnb for unpaid taxes.

In summary, prosecutors argue that the company did not levy tax from landlord on approximately €3.7b of rental earnings.

A tax of 21% has been imposed upon what Italians call ‘rentier’.

The BBC has reported that Airbnb is “surprised and disappointed at the action announced by the Italian public prosecutor”.

Airbnb’s European headquarters began attempts to settle the dispute with the Italian tax authority in June, according to its spokesman, Christopher Nutley.

Mr. Nutley added, “we believe that we have complied fully with the law and will exercise our rights regarding this matter”.

The authorities of Milan Tribunal reported that three managers, who worked for Airbnb from 2017 till 2021, were also inspected.

For instance, in 2022 Airbnb disputed the Italian statute which compelled them and the remaining short-term rental suppliers to withhold 21percent from rental income and dedicate is as payment towards tax authorities on behalf the landlords.

The company asserted that Italian regulations with respect to taxation were not in line with the freedom to provide services in context of 27 countries within the European Union.

Eventually, the EU’s top court ordered Airbnb to adhere to these requirement.

The Italy tax authorities have been on a crackdown on the big corporations with the likes of Airbnb who has operated in Italy since 2008.

Based on media reports, the prosecutors from Italy are also questioning Netflix and Meta companies regarding their tax issues.

The Italian lawmaker revealed that a few weeks ago they proposed imposing penalties on those property owners who failed to declare their income obtained from short-renting via the AirBnB platform.

The nation will take steps to develop a national identity code for short-term rentals, according to the co-ruling Forza Italia party.

“That code will extract the income from those who lease apartments without disclosing them,” Antonio Tajani, the leader of Forza Italia and deputy prime minister, stated to reporters.

Politicians predict that the action will increase Italy‘s tax revenue by €1 billion.

what is Airbnb

Airbnb is a website that enables people with spare rooms and apartments to offer accommodation to travelling guests. 

Brian Chesky, Joe Gebbia, and Nathan Blecharczyk established it in 2008. “Airbnb” is the abbreviated form of “Air Bed & Breakfast”, which was the original start-up business that involved letting them out a few air mattresses to tourists at their apartment.

It links host (those who give out their place) and guest (travellers wishing to rent accommodation facility). 

Hosts can post their properties, could be just a spare room, a complete house or even something unique as a treehouse or boat with specific details about the place, availability, and rate.

All these amenities allow guests to search for accommodations according to location, date, and preferences. 

This enables them to make reservation for a certain duration in selected hotels. Airbnb offers a secure payment system and allows communication between the host and guest.

The company has become among the largest online markets where one can find accommodation listings from various countries of the world. It goes beyond just lodging and offers experiences and other activities provided by local hosts for tourists to have more authentic experiences with their journeys.

what is Airbnb plus

Airbnb Plus is a premium offering by Airbnb which offers a select group of verified upscale properties for luxury travelers who prefer premium accommodation. This is an automated tool that aimed at identifying listings that met particular aesthetics and quality principles.

Here are some key features of Airbnb Plus:

Stringent Quality Standards: The staff visit and check this website lists personally, ensuring that it meets certain level of quality standard. These criteria will include hygiene, comfort and design aspect.

Enhanced Amenities: Most of the time, Air Plus listings provide special amenities with a goal towards improving guest comfortability. These may range from top of the line beddings like linen, fully stocked kitchens, among other details.

Stylish and Thoughtfully Designed Interiors: The look of the plus listings is very distinct and appealing. Their houses usually up-to-date with good interior.

Prime Locations: Most of Air Plus hosts offer their services within sought after districts or the city center to enable travelers with easy access to leisure destinations, gastronomic hubs, among others.

Dedicated Support: In case of challenges while staying in any of such properties, guests will enjoy premium support services offered through the website at no extra charge.

Professional Photography: The Website often employs professional photographers who take good quality pictures of the Plus Listings and display them impressively.

It is important to note that although the Air Plus provides a refined list of options in comparison to the typical listings, it is generally expensive. When it comes to customers that focus on more quality and style, Air plus properties usually do better.