Airbnbs and Italy’s tax regulations

https://www.cnn.com/2023/12/13/tech/airbnb-settles-italy-tax-dispute/index.html The tax on short term rentals by will also increase.

The settlement with Airbnb comes as the government of Prime Minister Giorgia Meloni seeks to crack down on rampant tax evasion and raise the tax rate on short-term lets — such as those provided by Airbnb — to 26%. -- ( from JHK's link)

Expect a spike in rates as the landlords now have to account for taxes.?

I love it when communities can make money off tourists. Over tourism is the result of "too cheap" .

Last October the Florence City Council passed a City Ordinance which prohibits any new AirBnB type of short term rentals within the historical center (those such properties already registered can continue to operate). The issue will likely be taken to court (or maybe it has already been taken to court) as many consider that measure a flagrant violation of private property rights guaranteed by Art. 42 of the Italian Constitution. We'll see how it ends.

I would be more in favor of a 50% tourist tax.

I would be more in favor of a 50% tourist tax.

So only the rich get to travel?

Remember, Mr E self describes as non-expert ---- and proves it!!

I looked at the AirBnb prices in District 1, Florence and they start at about $82 including current taxes and cleaning fees. The 50% tax would increase them to starting at $113 if the Host did not reduce the price due to a drop off in sales. (assuming cleaning fees are not taxed).

Probably more practical and in keeping with current practice. Increase the current tourist tax of about $6 a night to $30 or $40 a night. Or better yet, progressively bracket the tourist tax based on size or rental price Naaa, too much accounting. Just whack the tourists $40 a night. They can afford it

The moratorium on new licenses is fine too. Same end result, just takes a bit longer. If its the same as other places where this has been done the current licenses are not transferable so when a place changes hands, it also drops off the market. In time the number of available places diminishes increasing the value of the ones that do still have a license and rates in those places will increase .... maybe 50%?.

If the cause of implementing higher room taxes is tax evasion, how will that matter? If they are evading taxes now, what makes one think they will not in the future if the tax goes up? An increased tax only means that now the tax evader can pocket more money under the guise of the tax.

Good point. AirBnb is being required by Italy and a number of countries to be the tax collector. So, if you list on airbnb, and I presume the other listing agencies, the money is pretty much guaranteed to be collected.

Good point. AirBnb is being required by Italy and a number of countries to be the tax collector. So, if you list on airbnb, and I presume the other listing agencies, the money is pretty much guaranteed to be collected.

Its money. Gets a politician's attention every time!

I suspect due to airbnb losing their latest tax battle with the Italian government things are likely to go up and checking will be stricter. https://hostsandhomes.com/airbnb-settles-italian-tax-dispute-agrees-to-pay-576-million-euros/