Airbnb wants to buy its way out of the tax dispute with Italy

Housing platform Airbnb wants to pay 576 million euros to the Italian tax authorities to end a long-running tax dispute with the Mediterranean country.

The Italian tax authorities accused the company of not paying taxes on short-term rentals in Italy for five years.

The agreement between Airbnb and the Italian authorities covers the years 2017 to 2021, the company announced on Wednesday.

What was the occasion?

In Italy, landlords must pay a 21 percent tax on income from short-term rentals. In 2017, the so-called uniform tax on rental income was introduced in Italy. Airbnb filed a lawsuit against the introduction at the time.

However, the European Court of Justice rejected the company’s arguments almost a year ago and confirmed the obligation to collect and pay the tax. The Public Prosecutor’s Office in Milan accused Airbnb of not paying this tax in 2021.

According to the Tax Authorities, Airbnb had collected approximately 3.7 billion euros in the five years and the unpaid taxes by the housing platform were estimated at 779 million euros. A judge ordered the seizure of this amount in early November.

“Italy is an important market for Airbnb,” the statement said. The company therefore wants to continue its “constructive cooperation with the Italian authorities for 2022 and 2023”. There was initially no official information from the Italian tax authorities about the agreement and the process.

(dsc/sda/awp/dpa)