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 and remain in good standing with your rental activity.

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. This is a fundamental requirement across most jurisdictions, regardless of whether you use rental platforms or manage bookings independently.

Rental-related expenses such as utilities, repairs, maintenance, cleaning, 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 you to consult a tax professional to understand which costs are eligible for deduction in your specific jurisdiction.

It is essential to keep detailed records of earnings, expenses, and supporting invoices for each property and booking. These records serve as documentation if you are ever audited and help ensure you accurately report your income.

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 is a European Union directive that requires platforms to collect and share detailed host income information with EU tax authorities. This reporting framework has been in effect since 2023 and applies to all rental platforms operating within the EU.

As a rental platform, 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 if applicable
• Identification data of the property, including complete address
• Total revenue earned by the host
• Fees, commissions, or tax withheld per property
• Total number of days booked per property

You can access a summary of the information reported to tax authorities through your Holidu account. To download your tax return summary, log in to your account, go to Account by clicking on the top right menu, and scroll down to Your reports and certificates. This report can support your personal tax return preparation, but does not replace your obligation to file your own tax return.

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.

Cedolare Secca (Italy)

The Cedolare Secca is a substitute flat-rate tax for rental income in Italy, including income earned via platforms. This tax regime simplifies reporting for eligible hosts by replacing the standard income tax with a fixed-rate tax.

Italian platforms and international platforms operating in Italy, including Holidu, may be required to withhold part of the tax and remit it to Italian authorities on behalf of hosts.

When we withhold tax: We apply the Cedolare Secca withholding tax by default to private hosts who do not have a VAT number or commercial registration. This automatic withholding remains in place unless you are considered a professional host. You are considered a professional host if you proactively confirm that you have 3 or more properties, or if you provide a valid EU VAT number or commercial registration number. If you meet either of these criteria, contact our support team through the Assistant to update your tax status.

Important Considerations

Filing incorrect or incomplete tax returns can result in audits and other consequences. 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. Timely responses help ensure smooth processing and prevent any issues with your account.

How to Access Your Tax Information

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

To download your booking invoices:

1. Log in to your Holidu account
2. Click on the Financial tab on the left-side menu
3. Select the Invoice section
4. Download the invoices you need

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. Keep detailed records, download your earning statements, save expense receipts, and consult a local tax advisor for guidance specific to your region. Stay updated on regulatory changes to remain compliant with all tax requirements. You can download your tax reports directly from your Holidu account at any time.

If you have questions about your specific tax situation or need assistance accessing your tax documents, please reach out to our support team through the Assistant.