The Independent Authority for Public Revenue has begun mass checks on income from short-term rentals via Airbnb, Booking.com and Vrbo, sending notices to thousands of taxpayers for inaccurate or undeclared tax returns from previous years.

The electronic cross-checks carried out by the AADE against the data submitted by short-term rental platforms revealed significant discrepancies in the declared amounts, resulting in many property owners now being asked to submit amended returns.

Why is the AADE sending notices for Airbnb and Booking?

According to data from the Independent Authority for Public Revenue, several taxpayers declared lower income than was actually collected through Airbnb and other short-term rental platforms.

The most common reason was that many property owners declared the net amount that ended up in their bank account, after deducting the platform’s commission.

However, tax legislation provides that the income from short-term rental is deemed to be the total amount paid by the guest and not the amount after Airbnb or Booking deductions.

How is income from short-term rentals taxed?

For short-term rentals without additional services, such as breakfast, transport or daily cleaning, the income is taxed as income from immovable property.

This means that:

  • expenses or platform commissions are not recognised
  • Airbnb and Booking charges are not deductible
  • the total booking amount is taxed

The platforms now send detailed information to the AADE, such as:

  • total rental amount
  • Property Registration Number (AMA)
  • property details
  • rental duration
  • booking details
  • The AADE cross-checks this data with the E1 and E2 declarations and the Short-Term Stay Register.

What should those who received a notice from the AADE do?

Taxpayers who received a notice for Airbnb or Booking are asked to submit an amended tax return for the years in which an income difference was identified.

If they believe that the amounts they declared are correct, they must submit supporting evidence within the deadline stated in the AADE notice.

If there is no compliance or sufficient substantiation, the case may be referred for a tax audit.

Stricter checks for Airbnb and undeclared income

The Independent Authority for Public Revenue is now intensifying electronic checks on short-term rentals, making use of the data it receives directly from the platforms.

The aim is to identify undeclared income from Airbnb, combat tax evasion and ensure full tax compliance by property owners.

Do you need help with Airbnb returns or an amended return?

The AFS team stands alongside individuals and professionals who let property through Airbnb and other short-term rental platforms.

If you have received a notice from the AADE or need support with:

  • amended tax return
  • income from Airbnb
  • taxation of short-term rentals
  • E1 and E2 returns
  • AADE data checks
  • tax compliance for property
  • contact AFS via the contact form for immediate guidance and specialised support.