IAPR audits for unreported Airbnb income... and steep fines

IAPR is stepping up its efforts to "combing" short-term rental income as the company's turnover for 2022 will approach 1.9 billion euros, or 10% of all tourism-related spending, tightening the perimeter around Airbnb.

The government's intentions for harsher regulations in the industry have sparked a surge of responses, and in their letter to the prime minister, the agencies discuss ways to "strangle" short-term rentals.

It is possible, though, that the measures will be put on hold while a larger discussion about the housing crisis is launched.

The barometric pressure on the market and the economy is low, although housing inflation is accelerating at rates that last month reached 35.4%, competent sources underline, "However, not now"

In an effort to uncover "hidden" revenue, IAPR is initiating a bombardment of electronic inspections and cross-checks on tax returns, data from the Airbnb and Booking.com sites, as well as on credit cards and bank accounts.

Also targeted are property owners who list their rentals on social media platforms like Facebook and Instagram.

The auditors are looking for those who use platforms for short-term rentals to rent out houses but "hide" their revenue from the tax office or only declare a portion of it in order to pay less in taxes.

Owners and managers of properties like Airbnb who have not disclosed the Property Registration Number (AMA) on the online short-term rental platforms where the properties are rented or have disclosed false information about their properties will first pass through the "scanners" of the inspectors.

An instant tax audit of the income reported by owners of short-term rental properties will come after that.

The IAPR will compare the information provided by online platforms for short-term rentals with the incomes reported by taxpayers on their tax returns, specifically on the E2 form.

The information about the properties and managers is sent to the DOU in situations where it is determined that the properties have either not been declared in the "Short-term Accommodation Property Register" or have been posted on digital platforms without a clear indication of the Short-term Accommodation Property Registry Number, the Special Operation Mark (ESL), or the Unique Notification Number (UNIN).

The Tax Office will "seize a suit" of additional taxes and fines up to 5,000 euros for tax offenders.

IAPR will send letters to taxpayers requesting their quick compliance.

In addition to being fined 5,000 euros, those who fail to make the required corrections will have their property removed from the digital platforms where they had posted and exploited it. These corrections can be made by declaring the AMA or by correcting any mistakes or omissions in the details of their properties.

It should be noted that the IAPR has signed a cooperation protocol with Expedia Group companies Airbnb, Booking.com, and VRBO for the purpose of the registration process in the Independent Authority's website's Short-term Rental Register.

By fLEXI tEAM