Airbnb, a short-term home rental company, had 779 million euros seized in Italy on the grounds of tax evasion. The investigation, initiated by the Milan Prosecutor’s Office, alleges that the company failed to pay a 21% tax on the 3.7 billion euros of revenue from its European headquarters in Ireland between 2017 and 2021. Here ate the details…

Airbnb Tax Evasion Investigation in Italy Targets Company and Individuals

As part of the investigation, it was revealed that the financial police confiscated 779 million euros from the company. Additionally, an ongoing investigation targets three individuals who held managerial positions at Airbnb between 2017 and 2021. The company had previously contested the 2017 Italian law regarding rental taxes, arguing that it violated European Union regulations. According to this law, Airbnb and other short-term rental companies are required to pay 21% of their rental income to tax authorities.

Airbnb

Last December, Airbnb’s objection to this law was rejected by the European Court of Justice. Following the recent action by Italian authorities, Airbnb officials expressed their surprise and disappointment with the prosecutor’s decision. They also noted that they have been in discussions with the Italian tax authority since June 2023 in an effort to resolve the issue.

Airbnb emphasized its belief in operating in full compliance with the law and its intention to assert its rights. The Italian government had also announced last week that it would intensify its scrutiny of homeowners engaged in short-term home rentals. Furthermore, there are plans to increase the tax rate from 21% to 26% for those who rent multiple properties, with the government aiming to generate approximately 1 billion euros in additional revenue through this measure.

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