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 with regulations and ensures your financial records are accurate.

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 in your jurisdiction. The following principles apply:

• Declare all rental income earned through your properties
• Rental-related expenses, such as utilities, repairs, cleaning, and management fees, may be deductible depending on the tax rules in your country and your tax residency status
• Keep detailed records of earnings, expenses, and supporting invoices for each property and booking
• Understand how your rental activity is classified in your jurisdiction — 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 may be a legal obligation once certain thresholds are met

What you can deduct depends on your tax residency, legal entity, and the applicable tax regime. We encourage hosts to consult a tax professional to understand which costs are eligible for deduction in their specific jurisdiction.

Platform-Specific Tax Reporting Requirements

DAC7 Directive (EU-wide)

DAC7 is a directive that requires platforms to collect and share detailed host income information with EU tax authorities. The reporting requirement applies to platforms operating in the European Union and started from 2023 onwards.

Holidu reports the following information to tax authorities under DAC7:

• Identification data of the host, including Taxpayer Identification Number, address, date of birth, and 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

This information is shared annually with the relevant tax authorities in your country. You should use this information to support your personal tax return preparation, though it does not replace your obligation to file your own tax return.

Cedolare Secca (Italy)

The Cedolare Secca is a substitute flat-rate tax for rental income in Italy, including income earned via platforms. This simplified tax regime applies to certain rental properties and hosts.

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 Tax Withholding Applies

We apply the Cedolare Secca withholding tax by default to private hosts without a VAT number or commercial registration. This automatic withholding remains in place unless the host is considered a professional host.

The automatic withholding is removed if you:

• Proactively confirm that you have 3 or more properties
• Provide a valid EU VAT number
• Provide a commercial registration number

If any of these conditions apply to your situation, contact our support team through the Assistant so we can update your account accordingly.

How to Access Your Tax Information

Download Your Tax Return Summary

You can download your annual tax report directly from your Holidu account. Follow these steps:

1. Log in to your Holidu account
2. Click on your name in the top right menu and select Account
3. Scroll down to find "Your reports and certificates"
4. Download your tax return summary from this section

Access Your Booking Invoices

If you need your individual booking invoices, you can download them from the Invoice section in the Financial tab on the left-side menu of your account.

Key Responsibilities and Best Practices

To ensure compliance with tax regulations and maintain accurate records:

• Keep organized records of all earnings from every booking
• Save receipts and documentation for all rental-related expenses
• Download and review your annual reports from Holidu regularly
• Respond promptly to any requests or notifications from Holidu regarding your tax information
• Supply any required documentation when requested to avoid issues with fund withholding or account restrictions
• Stay informed about changes to tax regulations and reporting obligations in your country, as these may change annually
• Consult with a local tax advisor who understands the rental market in your region to ensure you meet all obligations specific to your circumstances

Important Information

Incorrect or incomplete tax returns can result in audits and other complications. Tax regulations and reporting obligations may change — it is your responsibility to stay current with regulatory updates in your country and jurisdiction.

Summary

As a host, your key obligations are to:

• Declare all rental income on your annual tax return in accordance with local laws
• Comply with platform-specific tax reporting requirements such as DAC7 in the EU and Cedolare Secca in Italy
• Maintain detailed records of earnings and expenses for all properties
• Download and review your annual reports from Holidu to support your tax filing
• Understand your tax classification (professional or non-professional) in your jurisdiction
• Seek guidance from a local tax professional for advice specific to your region and circumstances

By following these guidelines and staying organized, you can ensure that you meet all tax reporting requirements and maintain compliance with both local authorities and rental platforms.