So, for about a year and a half I've been renting out my studio apartment in Milano through Airbnb when I'm not using it. I make around 800-1000 euros a month from it. A friend told me I need to declare it to the tax authority, but honestly I'm not really sure how it works and if I risk getting in trouble if I haven't done it so far. Does anyone know how to get things in order?
Technically, you don't "have to" declare it - but if you don't, you're committing tax evasion. Airbnb shares your data with the tax authorities, so it's not something hidden; the taxman already knows you're making money. What a lot of people don't realize is that if you regularize things now, you can also use the voluntary disclosure procedure, which lets you pay back taxes with a reduced penalty. It's really worth contacting an accountant for a quick consultation - it doesn't cost much and it saves you the risk of a serious audit.
Unfortunately you have to report it. The income you make from Airbnb is taxable income and the tax authority knows about it because Airbnb reports the data to the tax agency (so it's not worth trying to hide it). The best thing is to get yourself straightened out as soon as possible: you can add the revenue to your last 730 or income tax returns without worrying about major problems if you do it now, maybe with help from an accountant who can tell you exactly what to declare and what expenses you can deduct (like maintenance, local taxes, etc.). What exactly do you mean by "you haven't done it so far" - not even one year of tax returns, or never filed anything?
The tax authorities already know you're renting because Airbnb sends them the data, so it's better to get yourself in order before any audits come your way. The most practical move is to contact an accountant who knows the short-term rental rules well (usually costs little for an initial consultation) and have them handle a back-filed return, maybe with a letter to the tax agency explaining the delay. That way you avoid surprises, sort out the situation, and from now on you report everything properly - sure, the €800-1000 a month matters to them, but the penalty for hiding it is what really counts right now.
Airbnb does actually report data to the tax authorities, but the situation isn't really "do it or go to jail" like some of the other answers make it sound - it depends on how much you're declaring overall and your specific situation. If your short-term rental income falls into a low bracket and you don't have other significant income, the risk might be more theoretical than practical, but the fact remains that technically you're required to include it in your tax return (or in form 730 if you're an employee, or in VAT if you exceed certain thresholds). The smartest thing is to contact an accountant to figure out exactly how to get yourself regularized without paying a ton of penalties - it almost always costs less than you'd think.
Log into answer.
