Tax Return

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 with your tax responsibilities.

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 applicable to your jurisdiction.

Rental-related expenses such as utilities, repairs, 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.

Keep detailed records of earnings, expenses, and supporting invoices for each property and booking. These records will help you when preparing your tax return and responding to any tax authority inquiries.

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.

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 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 complete 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 rental 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.

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 by either proactively confirming you have 3 or more properties, providing a valid EU VAT number, or providing a commercial registration number.

How to Download Your Tax Return Summary

To access your tax documents from Holidu:

1. Log in to your Holidu account
2. Go to Account by clicking on the top right menu
3. Scroll down to Your reports and certificates

How to Download Your Booking Invoices

If you need your booking invoices for tax reporting purposes, you can download them from the Invoice section under the Financial tab on the left-side menu of your account.

Key Points to Remember

Tax regulations and reporting obligations may change annually. Keep up with regulatory updates in your country to ensure continued compliance.

If you receive requests or notifications from Holidu or other platforms about your tax information, respond promptly and supply any required documentation. Delayed responses could result in restrictions on your account or withholding of funds.

Filing incorrect or incomplete tax returns can result in audits and other serious consequences. We strongly recommend consulting with a local tax professional who understands the specific tax requirements in your jurisdiction.

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 from your Holidu account regularly
• Save all expense receipts and supporting documentation
• Consult a local tax advisor for guidance specific to your region and circumstances
• Stay updated on regulatory compliance changes that may affect your rental activity
• Respond promptly to any tax-related communications or requests for information

You can download your DAC7 report, Certificazione Unica, or other tax documents directly from your Holidu account under Your reports and certificates. If you have questions about downloading your documents or accessing your account, our support team is available to assist you through the in-app Assistant.