Host Tax Return Requirements and Platform Reporting

As a host, you are responsible for declaring your rental income correctly and meeting the tax reporting requirements set by your local authorities and the platforms you use. Understanding these obligations helps you stay compliant and keeps your rental business running smoothly.

General Tax Return Obligations

• All income earned from short-term rentals must be reported on your annual tax return, in line with the tax laws of your country.
• Rental-related expenses, such as utilities, repairs, and management fees, may be deductible depending on the tax rules in your country.
• Which costs you can deduct depends on your tax residency, legal entity, and applicable tax regime. We recommend consulting a local tax professional to confirm which expenses are eligible in your jurisdiction.
• Keep detailed records of earnings, expenses, and supporting invoices for each property and booking.
• In many countries, rental income must be declared as personal or business income, even when you earn it through an intermediary platform.
• 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 detailed host income information with EU tax authorities. This applies from 2023 onward.

Under DAC7, Holidu is required to report the following information for each host:

• 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 shared with the relevant tax authorities. Holidu does not send annual reports automatically. Your tax summary is available for download in your account, and it can support your personal tax return preparation. It does not replace your obligation to file your own return.

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
• Providing a VAT number or a commercial registration number

How to Download Your Tax Return Summary

1. Log in to your Holidu account.
2. Click on Account in the top right menu.
3. Scroll down to Your reports & certificates.

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

• Tax regulations and reporting obligations may change from year to year. Stay informed about updates in your country.
• Check your tax information in your account regularly to confirm that it is accurate and up to date.
• If you receive a request or notification from Holidu about your tax information, respond promptly and provide any required documentation to avoid delays in payments or account restrictions.

Need Help?

If you have questions about your tax return or reporting requirements, please use the Assistant in your Holidu account. It can guide you to the right information and next steps.

Summary

• Declare all rental income and follow both local tax rules and platform-specific reporting requirements.
• Holidu reports host earnings to tax authorities under DAC7 and local regulations, such as Italy's Cedolare Secca.
• Keep records, save expense receipts, and consult a local tax advisor for guidance specific to your region.
• Stay up to date on compliance changes in your region.
• You can download your tax return summary and reports directly from your Holidu account.