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 ensures transparency in your rental activity.

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, cleaning, 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 your specific jurisdiction.

It is essential to keep detailed records of all earnings, expenses, and supporting invoices for each property and booking. 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. This ensures transparency and helps tax authorities verify that all income is properly reported.

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

Hosts can expect to receive annual reports from platforms summarizing the information sent to tax authorities. This report can support your personal tax return preparation, but does 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 platforms like Holidu. This simplified tax regime is designed to make tax compliance easier for hosts renting out properties in Italy.

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. This automatic withholding helps ensure that tax obligations are met promptly.

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 you are considered a professional host. You can change your status by proactively confirming that you have 3 or more properties, or by providing a valid EU VAT number or a commercial registration number to Holidu.

How to Download Your Tax Return Summary

To access your tax reporting documents, follow these steps:

1. Log in to your Holidu account
2. Click on your account menu in the top right corner
3. Scroll down to the section labeled "Your reports and certificates"
4. Download your tax return summary or certificazione report

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

Important Considerations

Tax compliance is crucial for hosts. Filing incorrect or incomplete tax returns can result in audits, penalties, and fines imposed by tax authorities. 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, please respond promptly and supply any required documentation. Failure to do so may result in withholding of funds or account restrictions while compliance issues are resolved.

If you have questions about your tax obligations or need assistance navigating the tax reporting process, please reach out to the Holidu Assistant, who can provide guidance and support.

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 tax reports from your account, save all expense receipts, and consult a local tax advisor for guidance specific to your region. Stay updated on regulatory changes in your area to ensure continued compliance with tax requirements.