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 rental platforms you use. Understanding these obligations helps you stay compliant and keeps your tax filings accurate and complete.

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.
• 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 applicable tax regime. We encourage you to consult a qualified tax professional to understand which costs are eligible in your jurisdiction.
• Keep detailed records of earnings, expenses, and supporting invoices for each property and booking.
• In many countries, rental income is treated as personal or business income and must be declared even when you use intermediary platforms. Local regulations often determine whether your activity is classified as professional or non-professional based on criteria such as the number of properties, income volume, or days rented. In many jurisdictions, registering as a business becomes a legal requirement once these thresholds are met.

Platform-Specific Tax Reporting Requirements

DAC7 (EU-wide Directive)

The DAC7 directive requires digital platforms, including Holidu, to collect and share certain host income information with EU tax authorities, starting from 2023. Holidu is required to report the following information for hosts in scope:

• Identification data of the host, including Taxpayer Identification Number, address, date of birth, and, for companies, the Commercial Registration Number
• Identification data of the property, including its complete address
• Total revenue earned by the host
• Fees, commissions, or taxes per property
• Total number of days booked per property

This information is reported to the authorities as required by law. Make sure the details in your Holidu account, such as your address, tax identification information, and property details, are accurate and up to date so that the reported data matches your official records.

Cedolare Secca (Italy)

The Cedolare Secca is a substitute flat-rate tax for rental income in Italy, including income earned through 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 do 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. You can be recognized as a professional host by proactively confirming that you have 3 or more properties, or by providing a VAT number or commercial registration number.

How to Download Your Tax Return Summary

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 the tax return summary available for your account.

Need Your Booking Invoices?

If you also need your booking invoices, you can download them from the Invoice section under the Financial tab in the left-side menu.

Important Considerations

• Filing incorrect or incomplete tax returns can lead to audits and additional tax liabilities, so review your reported figures carefully before submitting.
• Tax regulations and reporting obligations may change from year to year. Keep up with regulatory updates in your country.
• If you receive requests or notifications from Holidu or other platforms about your tax information, respond promptly and provide any required documentation so your account remains in good standing.

Summary

• Hosts must declare all rental income and comply with local and platform-specific tax reporting rules.
• Holidu reports host information and earnings to authorities under DAC7 and applicable local regulations, such as Italy's Cedolare Secca.
• Keep your records organized, download your reports and invoices, save expense receipts, and consult a local tax advisor for guidance specific to your region.
• Stay informed about regional compliance changes so your tax returns remain accurate.
• You can download your tax return summary directly from your Holidu account.

If you have any questions about your tax reporting, please reach out to us through the Assistant.