December 13, 2023Business Desk

Airbnb Settles Tax Dispute in Italy with €576 Million Payment

Airbnb settles Italy tax dispute, agreeing to pay €576 million ($620.58 million) to the Italian Revenue Agency for host income tax obligations from 2017-2021.

Source: Airbnb

The settlement does not involve any admission of liability by Airbnb Ireland, and the company will not seek reimbursement from hosts.

Source: Airbnb

Excluded from the settlement are assessments for 2022 and 2023, with potential amounts described as "material" in Airbnb's regulatory filing.

Source: Airbnb

A recent legal episode involved the seizure of 779.5 million euros from Airbnb's European headquarters in Ireland, citing alleged tax evasion by the platform.

Source: Airbnb

Italian tax probe focused on Airbnb's failure to withhold 21% of landlords' rental income, as mandated by a 2017 law, leading to a legal battle that ended with an EU court ruling against Airbnb.

Source: Airbnb

Italy plans a crackdown on tax cheating in short-term rentals, considering a tax increase from 21% to 26% for owners of multiple short-term rental properties.

Source: Airbnb