Taxes & Fines for Undeclared Vacation Rentals on Airbnb & Booking

By , 02 Oct 2018, 10:25 AM Business
Taxes & Fines for Undeclared Vacation Rentals on Airbnb & Booking Screenshot from airbnb.com

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STA, 1 October 2018 - The Financial Administration (FURS), which announced stepped up measures targeting a surge in undeclared vacation rentals at the end of last year, issued a total of EUR 237,000 in fines and charged EUR 230,000 in additional tax by the end of August. 

FURS had called on owners to report their revenue to avoid fines even earlier.

Measures were first announced at the beginning of last December, with FURS deciding to put a stop to undeclared leasing of real estate to tourists after the practice skyrocketed with the increasing popularity of platforms like Airbnb and Booking.

Noting that all data had been obtained, FURS called on property owners to review and potentially revise their revenue figures by the end of January 2018, saying that failure to do so could cost the offenders from EUR 400 to EUR 30,000.

Until the end of January, FURS inspectors did not issue fines, but instead helped owners register their services. The response was poor at first, with only 374 owners registering their services by the deadline, but the number started to grow as inspectors stepped up their measures.

In the first six months, FURS inspectors carried out inspections at more than 450 locations, launching minor offence proceedings against 227 owners in relation to a total of 427 violations, most of them relating to undeclared work and illegal advertising.

They issued a total of EUR 237,000 in fines and 56 warnings by the end of August and charged an additional EUR 230,000 in tax to owners who have declared their revenue since the public call, FURS said on Monday.

Between the beginning of February and the end of April, an additional 973 home owners registered their services. In the first eight months of the year, a total of 2,154 owners registered anew, which is 30% than in the same period in 2017 and 53% more than in 2016.

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