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 in your jurisdiction.

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 applies regardless of whether you use a rental platform or manage bookings independently.

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

Keep detailed records of earnings, expenses, and supporting invoices for each property and booking. These records are essential for:

• Preparing accurate tax returns
• Supporting your deductions if audited
• Demonstrating compliance with local regulations

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 requirement began in 2023 and applies to all booking platforms operating within the EU.

Under DAC7, 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
• Identification data of the property, including complete address
• Total revenue earned by the host
• Fees, commissions, or tax per property
• Total number of days booked per property

To prepare for DAC7 reporting, ensure that your profile information and property details are accurate and up to date. You can download a summary of the information reported to tax authorities from your Holidu account. This summary can support your personal tax return preparation, but 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 through platforms. This tax regime simplifies tax obligations for rental hosts operating in Italy.

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 Is Withheld

For private hosts without a VAT number or commercial registration, Holidu applies the Cedolare Secca withholding tax by default. This automatic withholding remains in place unless the host is considered a professional host by either:

• Proactively confirming to have 3 or more properties
• Providing a valid EU VAT number
• Providing a commercial registration number

If you meet any of these criteria, update your account settings to ensure the correct tax treatment is applied to your earnings.

How to Download Your Tax Return Summary

To access your tax reporting documents from Holidu:

1. Log in to your Holidu account
2. Click on the menu in the top right corner and select Account
3. Scroll down to the section titled "Your reports & certificates"
4. Download your tax return summary or annual report

Downloading Booking Invoices

If you need your booking invoices for tax purposes, you can download them separately:

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

Keep these invoices organized and easily accessible for tax filing and potential audits.

Important Considerations

Tax regulations and reporting obligations can change annually. Stay informed about regulatory updates in your country to ensure continued compliance. If you receive requests or notifications from Holidu or other platforms about your tax information, respond promptly and supply any required documentation to avoid delays in fund transfers or account restrictions.

Tax compliance is an ongoing responsibility. If you are uncertain about how tax rules apply to your rental business, consult with a local tax advisor who understands rental income regulations in your jurisdiction. They can help you:

• Understand which expenses are deductible
• Determine whether you should register as a professional host
• Prepare accurate tax returns
• Stay compliant with local regulations

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. You can download your tax reporting documents directly from your Holidu account at any time.