Tax Return

As a host, you are responsible for properly declaring your rental income and meeting the tax reporting requirements mandated by both tax authorities and rental platforms. Understanding your obligations ensures legal compliance and helps you manage your tax responsibilities effectively.

General Tax Return Obligations

All income generated from short-term rentals must be reported on your annual tax return in line with local tax laws. This applies regardless of whether you rent through a platform or independently.

Rental-related expenses such as utilities, repairs, cleaning, and management fees may be deductible, depending on the tax rules in your country. However, what you can deduct depends on your tax residency, legal entity type, and the applicable tax regime. We strongly encourage you to consult with a tax professional to understand which costs are eligible for deduction in your specific jurisdiction.

Keep detailed records of all earnings, expenses, and supporting invoices for each property and booking. These records are essential for accurate tax reporting and may be required by tax authorities during an audit.

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 certain thresholds are met.

Platform-Specific Tax Reporting Requirements

DAC7 (EU-wide Directive)

DAC7 is an EU-wide directive that requires platforms to collect and share detailed income information of hosts with EU tax authorities. Starting from 2023, Holidu reports the following information to tax authorities:

• Your identification data (including Taxpayer Identification Number, address, birthday, and if applicable, Commercial Registration Number)
• Identification data of each property (including complete address)
• Total revenue earned per property
• Fees, commissions, and tax per property
• Total number of days booked per property

This information helps tax authorities maintain accurate records of rental income. You are still responsible for filing your own tax return in accordance with local requirements.

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: For private hosts without a VAT number or commercial registration, we apply the Cedolare Secca withholding tax by default. This automatic withholding remains in place unless you are considered a professional host by proactively confirming that you have 3 or more properties, or by providing a VAT or commercial registration number.

How to Access Your Tax Information

Download Your Tax Return Summary

To download your tax return summary from Holidu:

1. Log in to your Holidu account
2. Go to the Account section (top right corner)
3. Scroll down to "Your reports & certificates"
4. Download your tax summary

This summary provides an overview of your income reported to tax authorities and can assist with your personal tax return preparation, though it does not replace your obligation to file your own return.

Download Your Booking Invoices

If you need booking invoices for your records, you can easily download them from the Invoice section under the Financial tab in the left side menu of your Holidu account.

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 stay informed about requirements in your jurisdiction.

If you receive requests or notifications from Holidu or other platforms regarding your tax information, respond promptly and supply any required documentation as requested.

We recommend consulting with a local tax advisor who understands rental income taxation in your country. They can help you understand your specific obligations, identify deductible expenses, and ensure you remain compliant with all applicable regulations.

Key Takeaways

• You 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
• Keep detailed records of all income and expenses for each property
• Download your earnings statements and invoices from your Holidu account regularly
• Consult with a local tax advisor to understand your specific tax obligations and deductions
• Stay updated with regulatory changes in your jurisdiction to maintain compliance

If you have questions about accessing your tax information or need assistance with your account, please use the Assistant feature in your Holidu account for support.