What tax implications does renting out to holiday guests through platforms like Airbnb have?
June 5, 2023 | 50,00 EUR | answered by Mia Pilz
Dear tax advisor,
My name is Irmgard Schlosser and I own a property that I would like to rent out to holiday guests through platforms like Airbnb. I am now concerned about the tax implications of this rental and unsure of the correct way to proceed.
The current situation is unclear to me, as I do not know what tax obligations and options come with renting out through Airbnb. I am worried that I may be evading taxes or incorrectly reporting income, which could have legal consequences.
Therefore, I am wondering about the tax implications of renting out my property to holiday guests through platforms like Airbnb and how to act correctly to avoid tax pitfalls. Are there any specific regulations or tax benefits for renting to holiday guests? Do I need to submit specific tax returns or provide special documents?
I would greatly appreciate it if you could help me with this and show me possible solutions to rent out my property through Airbnb without running into tax issues.
Thank you in advance for your support.
Sincerely,
Irmgard Schlosser
Dear Mrs. Schlosser,
Thank you for your inquiry regarding the tax implications of renting out your property through platforms like Airbnb. It is understandable that you are concerned about possible tax pitfalls and want to ensure that you are acting correctly. Below, I will explain in detail the tax aspects to consider when renting out your property to holiday guests through Airbnb.
First of all, it is important to know that income from vacation rentals is generally subject to tax. This means that you must declare the rental income earned in your annual tax return. The income from the rental is treated as income from renting and leasing (§ 21 EStG). Therefore, you must pay taxes on the income earned, minus any deductible expenses.
Deductible expenses are all costs incurred in connection with the rental that can be claimed as tax deductible. These include, for example, maintenance and repair costs, depreciation on the building, property taxes, insurance premiums, cleaning costs, management fees, and also a proportional depreciation on the furnishings of the vacation rental. It is important that you keep all receipts and invoices carefully to be able to prove your deductible expenses to the tax office.
Furthermore, there are specific tax regulations and options that apply specifically to renting out to holiday guests. For example, you can take advantage of the so-called small business regulation according to § 19 UStG if your annual rental income is below the threshold of 22,000 euros. In this case, you are exempt from sales tax and do not have to pay sales tax on your rental income.
However, it is important to note that special documentation requirements apply when renting out through platforms like Airbnb. For example, you must document and record all income and expenses precisely to ensure proper tax reporting. Additionally, you should familiarize yourself with any local regulations and rules that apply to vacation rentals in your area.
In conclusion, renting out your property through Airbnb has tax implications that must be carefully considered. It is advisable to inform yourself early on about the tax obligations and options, and to consult a tax advisor if necessary to ensure that you are calculating everything correctly and avoiding any tax issues.
I hope that my explanations have been helpful and that you now have a better understanding of the tax aspects of renting out your property to holiday guests through Airbnb. If you have any further questions or need assistance, please feel free to contact me.
Best regards,
Mia Pilz
Tax Advisor
