Help with Airbnb rules on tax when you are UK based host with a property in the EU

[Ed409]

Does anyone have experience of how to deal with the new Airbnb rules on tax. If you are a UK resident with a property in the EU do you pay tax on your Airbnb income in the UK, if so how do you deal with the situation that Airbnb are insisting on tax details for the country where you property is located?

Did you already pay tax locally or have now had to register to do so?

It is very confusing and Airbnb themselves don't seem to have a solution to pass on the information to the country where your property is that you pay tax in your country of residency which is now outside the EU and not part of the regulation requiring tax details to be shared. My understanding is that a tax treaty is normally in place to allow for tax to be paid in the owners country of residence.

Any thoughts on this?

[Mike-And-Jane0]

@Ed409 Most countries in the world (and certainly the EU) expect you to pay tax in their country. You then declare both the foreign income and tax paid on your UK tax return and, assuming there is a dual tax treaty, you won't pay a huge amount of tax on that income in the UK. There are dual tax treaties with all the countries in the EU so you should be fine.

What you cannot do is mix foreign earned holiday let income with UK earned FHL income.

You probably need to find an accountant versed with EU property income.

[Robert7432]

Hello @Ed409 !

I understand that you are a UK resident with a property in the EU and are wondering how to deal with the new Airbnb rules on tax. If you earn income from hosting on Airbnb, you may be required to pay taxes on that income in both your country of residence and the country where your property is located.

According to Airbnb, UK hosts can receive a £1,000 tax-free allowance on income earned from hosting. However, you cannot claim both the £1,000 tax-free allowance and Rent-a-Room relief on the same income. If your income is more than £85,000, you’ll need to register for VAT.

Regarding your specific situation, it’s best to check with a qualified advisor or the UK government as circumstances may vary. It’s also important to note that there are dual tax treaties with all countries in the EU, so you should be fine. However, it’s recommended that you find an accountant who is well-versed with EU property income.

I hope this clear things out!

[Helen3]

Sorry @Robert7432  that's not great advice. The rent a room scheme in the UK is completely irrelevant to someone who lives in the UK but hosts in another EU country. 

And what taxes you pay on earned income depends on your other income streams.

The UK government does not advise on tax issues for individuals @Ed409  needs to speak to a UK accountant with knowledge of EU tax laws.