Overview

• Airbnb has agreed to pay $621 million to settle a tax dispute with Italy over unpaid taxes.
• The dispute was over short-term rental taxes Airbnb failed to pay on behalf of Italian landlords who used the platform between 2017 and 2021.
• Airbnb is introducing new tools for hosts to have their taxes withheld automatically and paid to the Italian tax authorities on their behalf.
• The European Union ruled in 2022 that member countries could require short-term rental platforms to collect income taxes.
• The Italian government is planning to raise the tax rate for owners from 21% to 26%.