Airbnb Settles $621M Tax Dispute with Italy

The settlement comes as the company introduces new tools for tax withholding and the Italian government plans to raise the tax rate for owners.

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%.