In a move that could have major implications for the online homestay platform, an Italian judge has ordered the seizure of a whopping €779 million ($836 million) from Airbnb for alleged tax evasion.
According to a statement issued by a Milan-based public prosecutor’s office, Airbnb failed to collect and pay taxes on roughly €3.7 billion ($3.96 billion) of rental income generated between 2017 and 2021. This falls under Italy’s 2017 law that mandates a 21 percent tax on rental earnings for landlords in the country.
Airbnb initially challenged this law in a European Union court last December, arguing that it violated the EU’s principle of freedom to provide services across the 27-member bloc. However, the court ruled in favor of Italy, requiring Airbnb to comply with the tax regulations.
Despite this ruling, Airbnb allegedly failed to pay the outstanding taxes, prompting the Italian authorities to take action. The seizure of $836 million is a significant blow to the company and sends a clear message that tax evasion will not be tolerated.
