Dec 13, 2023

Airbnb to pay Italy €576m to settle tax dispute

Accommodation website Airbnb has agreed to pay the Italian tax authorities €576m to settle a tax dispute. Landlords in Italy are required to pay a 21% tax on their earnings. Last month, an Italian judge ordered the seizure of €779.5m from Airbnb's European headquarters in Ireland for alleged tax evasion for the 2017-21 tax years. The Italian authorities have recently launched inquiries into tax practices of major companies such as Airbnb. In 2022, Airbnb, which has been operating in the country since 2008, challenged the Italian law that requires short-term rental providers to withhold 21% of the rental income from landlords and pay it to tax authorities.

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