Renting out your holiday home or buy-to-let on a home-sharing website such as Airbnb or Vrbo can yield attractive returns. However, tax on Airbnb property abroad can be perplexing. Many overseas landlords don’t realize how much tax they owe as a host. Are you getting all of your tax breaks?
We’ve answered some of the most common tax questions from short-term rental hosts with properties abroad like you. Here is what you need to know about tax on Airbnb property abroad.
General Tax Obligations and Reporting
Do I have to pay taxes on Airbnb income?
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Yes, in general, Airbnb income is taxable.
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If you are renting out your property abroad, you have to pay income tax on it.
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In general, you will be able to deduct some of the allowable expenses, such as mortgage interest, rates, insurance, and so on.
How do I report Airbnb income on a tax return if I own an overseas property?
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Compliance with the tax on Airbnb property abroad is essential to avoid legal issues and financial setbacks.
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If you are renting an overseas property, you are obliged to file an income tax return not only in your home country but also abroad – where your property is.
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Airbnb rentals are involved in the national tax system.
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Airbnb recently revealed that they are sharing hosts’ data with the tax authorities. Landlords should fill out their Airbnb tax returns appropriately to avoid government penalties.
Will I be taxed twice?
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You won’t be taxed twice. If there is a tax treaty between the two countries, you should not be double-taxed.
How much taxes do I pay on my Airbnb rental income?
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The amount of taxes you must pay will be determined by your gross rental income as well as any deductible expenses you may be able to claim.
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It also depends on the income tax rates in the country where your property is.
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Allowable expenses lower your taxable income so that you pay less tax in the end.
Deductible Expenses and Record Keeping
What expenses can I deduct from my Airbnb income?
Most expenses that you can deduct are similar for all countries including:
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Purchase costs (including notary fees)
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Land registry taxes
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Depreciation of the building
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Depreciation of the furniture
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Interest on a loan
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Facility charges
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Letting agency’s fees
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Utilities ( gas, electricity, water, TV, internet)
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Accountant’s fees
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Property insurance fees
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A “maintenance” trip (to check your property)
Where can I see my Airbnb earnings for tax purposes?
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Simply navigate to the Settings page and select “Transaction History” to view all of your Airbnb earnings information.
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Once there, you can sort transactions by payout method, listing, and date.
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You will then be able to see completed payouts, upcoming payouts, and gross earnings.
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This page also allows you to export your earnings and transaction history into a spreadsheet for use when filing your income tax return.
Why do you need to keep all the records of your rental periods?
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If you want to properly complete your Airbnb tax return, you must keep accurate records of when you rented out your house.
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You will also need to keep the income documents and receipts for all your expenses.
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In addition to the dates your property was rented out on the Airbnb platform, you’ll need to keep track of the days you occupied it yourself.
Platform and Local Tax Rules
May I receive a tax form from Airbnb?
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Yes, you may receive a tax form from Airbnb.
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They should also send you a form if taxes were withheld from your payouts, so you can claim them on your tax return.
If I don’t get a notice or tax form, do I still owe taxes?
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If you do not receive a tax form, this does not mean that you do not owe income taxes.
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Your host site reports your income to the tax authorities, so you must report the same income when you file your property tax return.
Does Airbnb/Vrbo collect taxes on my behalf?
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Each listing site has its own income tax withholding rules.
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Airbnb and VRBO ask for taxpayer information from hosts because they must disclose it to the tax authorities in the respective country.
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Airbnb’s policy is that if you do not provide them with accurate tax information, they will deduct income taxes from your payouts. The amount they withhold is between 24% and 28%, which is likely more than you owe.
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If Airbnb withheld income from your payments, you can claim it on your tax return as a credit.
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The most important thing you can do is to simply report your rental income on your tax return.
What about local taxes?
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Depending on where your property is, you may also be required to pay local taxes on your Airbnb earnings. Sales tax and occupancy tax are common local taxes that Airbnb hosts must pay.
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In some countries, Airbnb may collect and remit occupancy tax on your behalf, often known as a hotel tax, lodging tax, or transient occupancy tax. This indicates that these taxes will be added to a guest’s bill automatically.
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Still, as an Airbnb host, you are ultimately responsible for meeting your local tax requirements.
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To find out what taxes you’ll have to pay, contact the tax authorities in the area where your property is located.
Country-Specific Tax Information (Non-Residents)
If your property is located abroad – in France, Spain, Germany, the UK, the USA, Ireland, Hungary, and Poland, check out the most important information you need to know below.
France
Do I need to declare it?
Yes, rent earned is taxed the same as furnished rental. Landlord is classified as an unprofessional landlord (Loueur Meublé Non-Professionnel LMNP). Must file a French rental tax return and an income tax return in your home country. Unlikely to be taxed twice if a double taxation treaty exists.
How much tax?
Rental Income: 20% up to €28,797, and 30% for income exceeding this.
Social Charges: 7.5% for EU residents and 17.2% for non-EU residents.
Can I claim deductions?
Yes.
Real mode taxation allows all allowable expenses to be deducted.
Micro Mode of taxation (Micro – BIC) allows a 50% of gross rental income notional deduction.
Spain
Do I need to declare it?
Yes, money earned is taxable income. Must file a separate tax return for “Deemed tax” for periods the property is not rented out. Non-resident taxpayers must file Form 210 and pay quarterly.
How much tax?
EU/EEA Residents: Rental income tax rate allows deduction of expenses.
Non-EU/EEA Residents: 24% for the first €600,000, 47% above this. Cannot deduct expenses linked to property management or maintenance.
Can I claim deductions?
Only if you are an EU resident. Deductions include mortgage interest, transfer tax, community fees, maintenance/repair costs, utility fees, and insurance. The maximum deductible amount is not bigger than your total income.
Ireland
Do I need to declare it?
Yes, income from short-term lettings is generally taxable as trading income (Case I) or miscellaneous income (Case IV). If considered trading income, register with Revenue (TR1 form) and file a Form 11 tax return (Form 12 if income < €5,000). Tax due on all income; income does not qualify for rent-a-room relief.
How much tax?
Income Tax: 20% up to the standard cut-off rate (€42,000 for singles in 2024), 40% beyond this limit. Also required to pay PRSI and USC. Tenant must deduct tax (currently 20%) if paying rent directly to a non-resident landlord, which the landlord can claim as a credit.
Can I claim deductions?
Yes, you can claim the general tax deductions mentioned above.
Germany
Do I need to declare it?
Yes. If you are not a German resident, you are only taxed on your German-source income. An annual German property tax return is obligatory there and in your home country.
How much tax?
Taxed at the same progressive rates as regular income. Non-residents always pay Income tax even if their income is below €11,604. Solidarity Surcharge: 5.5% (exempt for singles earning less than €18,130).
Can I claim deductions?
Yes. Thousands of German landlords pay more taxes on their rental revenue than they should every year because they do not claim their allowable expenses.
Poland
Do I need to declare it?
Yes. Every non-resident who owns a rental property in Poland is liable to taxation. Owners must submit monthly calculations and payments to the tax office by the 20th of the following month, and file an annual Polish property tax return. Married couples who own a property must file two personal tax returns.
How much tax?
From the 2023 tax year, all rental income will be taxed at a flat rate of 8.5%.
Can I claim deductions?
No allowable expenses can be deducted.
Hungary
Do I need to declare it?
Yes. A foreigner who owns a rental property in Hungary that generates a rental profit must file a Hungarian property tax return with the tax office every year.
How much tax?
Income tax is levied at a flat rate of 15%. You should pay tax on either your rental earnings, reduced by 10%, or your real profit (rental income with allowable costs deducted).
Can I claim deductions?
Yes, you can claim the general tax deductions that we mentioned earlier.
USA
Do I need to declare it?
Yes, nonresidents with US properties should usually file a US property tax return and one in their home country. You can provide Airbnb with Form W-8288 – B to avoid withholding, or Airbnb will withhold 30% of your payments if you present an IRS Form.
How much tax?
Not Effectively Connected Income: Taxed at 30% (or a lower treaty rate).
ECI (Effectively Connected Income): Taxed at progressive rates based on the net income earned after expenses and deductions are applied.
Can I claim deductions?
Yes, you can claim the tax deductions we mentioned earlier.
UK
Do I need to declare it?
Yes, the income is taxed by the UK government, even if the landlord lives in another country. They should file a UK property tax return both in their home country and the UK. The tenant or rental agent has a legal obligation under the Non-resident Landlord Scheme to withhold the tax before the rent is paid to the landlord.
How much tax?
A Personal Allowance of £12,570 (for 2023/24) can be deducted from the non-resident landlord’s profit before standard income tax rates are applied (Basic Rate 20%, Higher Rate 40%, etc.).
Can I claim deductions?
Yes, you can claim the tax deductions we mentioned earlier.
Getting Professional Tax Assistance
Do I need a property tax expert to help me file my Airbnb taxes?
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Before submitting an Airbnb tax return, it is best to seek professional assistance.
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Taxes are a complicated subject, and you can definitely benefit from professional tax assistance.
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Tax professionals can advise you on how to save money, which expenses you can claim, and how to fill out your tax returns appropriately. If you can afford it, you should certainly hire tax assistance.
Who can help me deal with my Airbnb property taxes?
No one wants to pay more tax than they have to. If you own a rental house, apartment, or office space out of your country, you might be able to save on taxes. With the help of an experienced property tax expert, you will be able to claim all the tax credits and deductions applicable to your personal circumstances.
Our services are available to non-resident and resident property owners in the following countries:
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France (non-residents)
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Germany (non-residents)
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Hungary (non-residents)
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Ireland (residents and non-residents)
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Poland (non-residents)
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Spain (non-residents)
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UK ( residents and non-residents)
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USA (residents and non-residents)
We are here to help you! Property Tax International’s tax specialists can help you file your property tax return online.
Why choose PTI Returns (Property Tax International)?
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Save time and stress – Our property tax specialists will handle all the tricky Spanish tax paperwork
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Peace of mind – PTI Returns is part of Clunetech. We have more than 25 years of experience in international tax, and we will keep you compliant with the tax authorities in the jurisdictions we operate in
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Convenient service – Our service is online
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Your questions answered – If you have any questions that we did not answer, you can request a free callback from our tax experts
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No language barrier – Our tax experts will deal with language barriers and with the local tax office on your behalf
Got questions? You can request a free callback from a tax expert!
If I am a non-resident, earning Airbnb income from Spain, do I need to declare it and file a tax return?
In general, the money you earn as an Airbnb Host is considered taxable income. For the period your property is not rented out, you are liable to a tax called “Deemed tax“, and you must file a separate tax return.
Non-resident taxpayers must file an income tax return (use Form 210) and pay quarterly, on the 20th of the month after each quarter (20 April, 20 July, 20 October, or 20 January).
If you are a non-resident with property in Spain, you have to file an income tax return both in your home country and in Spain and pay Spanish tax on rental income.
Can I claim any tax deductions for my Airbnb income in Spain?
You can deduct the following expenses from your rental income (only if you are an EU resident):
– mortgage interest on loans for the purchase or renovation of real estate
– transfer tax, legal fees, and other costs associated with the purchase of the real estate
– community fees
– advertising fees
– non-national taxes, e.g. local council rates (IBI)
– maintenance and repair costs
– utility fees, i.e. water, gas, and electricity costs if you pay them
– insurance policy costs
The Spanish tax authorities do not allow you to deduct the expenses of property renovations or improvements. You cannot also claim expenses for addition, such as adding another room or a swimming pool. The maximum deductible amount is not bigger than your total income.
If you want to know more, check out our guide on Non-resident Tax in Spain.
Can I claim any tax deductions for my Airbnb income in Ireland?
Yes, you can claim the general tax deductions that we discussed above.
If I am a non-resident, earning Airbnb income from Germany, do I need to declare it and file a tax return?
Yes. If you are not a German resident, you are only taxed on your German-source income.
German rental income is usually classified as German source income, and an annual German property tax return is obligatory there and in your home country.
Can I claim any tax deductions for my Airbnb income in Germany?
Yes. Thousands of German landlords pay more taxes on their rental revenue than they should every year because they do not claim their allowable expenses.
If I am a non-resident, earning Airbnb income from Poland do, I need to declare it and file a tax return?
Every non-resident who owns a rental property in Poland is liable to taxation.
Owners of rental properties in Poland who receive rental income must declare this income to the tax authorities each year by filing a Polish property tax return.
Everyone earning rental income must submit monthly calculations and payments to the tax office by the 20th of the month following the month in which rent was received.
It is important to know that if you are a married couple that owns a rental property in Poland, you must file two personal tax returns.
How much tax will I have to pay on my Airbnb income in Poland as a non-resident landlord? Can I claim any tax deductions for my Airbnb income in Poland?
As per the tax reform in Poland, from the 2023 tax year, all rental income will be taxed at 8.5%, with no allowable expenses to be deducted.
If I am a non-resident, earning Airbnb income from Hungary do I need to declare it and file a tax return?
If you are a foreigner who owns a rental property in Hungary that generates a rental profit, you must file a Hungarian property tax return with the tax office every year.
How much tax will I have to pay on my Airbnb income in Hungary as a non-resident landlord?
In Hungary, income tax is levied at a flat rate of 15%. You should pay tax on either your rental earnings, reduced by 10%, or your real profit (rental income with allowable costs deducted).
Can I claim any tax deductions for my Airbnb income in Hungary?
Yes, you can claim the general tax deductions that we mentioned earlier.
If I am a non-resident, earning Airbnb income from the USA, do I need to declare it and file a tax return?
Nonresidents with properties in the US usually should file a US property tax return (and one in their home country) and pay tax to the IRS on income earned through Airbnb.
In this situation, you can provide Airbnb with Form W-8288 – B and they won’t withhold tax on your payouts. Instead, Airbnb will issue you an IRS Form 1042-S annually reporting your income, so that you can report it on your US rental income tax return.
The other option is – Airbnb will withhold 30% of your payments from US listings if you present an IRS Form, and pay the tax to the tax authorities. Airbnb will give you an IRS Form 1042-S at the end of the year detailing the amount of withheld tax credits on your payouts.
How much tax will I have to pay on my Airbnb income in the USA as a non-resident landlord?
US real estate income owned by a nonresident alien is taxed at 30% (or a lower treaty rate) if it is not effectively associated with a US trade or business.
On the other hand, ECI (associated with a US business/ trade) is taxed at progressive rates based on the net income earned after expenses and deductions are applied.
Can I claim any tax deductions for my Airbnb income in the USA?
Yes, you can claim the tax deductions we mentioned earlier.
If I am a non-resident, earning Airbnb income from the UK, do I need to declare it and file a tax return?
Yes. Even if the landlord lives in another country, the income is taxed by the UK government, even if it is paid into a foreign bank account. They should file a UK property tax return both in their home country and the UK.
The tenant or rental agent has a legal obligation under the Non-resident Landlord Scheme to withhold the tax before the rent is paid to the landlord.
Every three months this tax is paid to HMRC.
When the overseas landlord files a UK Self Assessment Tax Return, any tax withheld by the tenant or letting agent is deducted from the landlord’s UK tax liability.
Can I claim any tax deductions for my Airbnb income in the UK?
Yes, you can claim the tax deductions we mentioned earlier.