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 regulatory standards.

General Tax Return Obligations

All income earned from short-term rentals must be reported on your annual tax return, in accordance with local tax laws in 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 their specific jurisdiction.

It is essential to keep detailed records of 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 directive ensures transparency in the rental market across the European Union.

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

You can download your annual tax return summary from your Holidu account to support your personal tax return preparation. However, this report 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 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.

We apply the Cedolare Secca withholding tax by default for 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 withholding status by proactively confirming that you have 3 or more properties, or by providing a valid EU VAT number or commercial registration number.

How to Download Your Tax Return Summary

Follow these steps to access your tax reporting documents from your Holidu account:

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
4. Download your tax return summary

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

Filing incorrect or incomplete tax returns can result in audits and fines. Tax regulations and reporting obligations may change annually, so it is important to keep up with regulatory updates in your country or region.

If you receive requests or notifications from Holidu or other platforms about your tax information, respond promptly and supply any required documentation to avoid withholding of funds or account restrictions.

Key Takeaways

• 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
• Keep detailed records of all earnings, expenses, and receipts for each property and booking
• Download your tax reporting statements directly from your Holidu account
• Consult a local tax advisor for guidance specific to your region and circumstances
• Stay updated on regional compliance changes and regulatory requirements

If you need further assistance with your tax return or have questions about your specific situation, please use the Assistant feature in your account to contact our support team.