apartment in Italy

[Andrey221]

I have a question: I have an apartment in Italy that I would like to rent out on airbnb at the beginning of the season. I am a tax resident of the Czech Republic. Is it possible? To continue paying taxes from the Czech Republic and have accounts in the Czech Republic? How do I pay the tourist tax, etc.? Do you have some experience?

[Helen3]

You would need to check with accountant with experience of taxation in both countries @Andrey221 

[Oksana127]

1. Yes, It’s Possible to Pay Taxes in the Czech Republic
   Since you are a tax resident of the Czech Republic, you will generally pay income tax there on your worldwide income (including income from Airbnb in Italy). However, you need to ensure that Italy’s tax authorities recognize this through double tax treaties between the two countries. Both the Czech Republic and Italy are part of the EU, which simplifies some tax agreements, but you might need to file declarations in both countries to comply with local laws.

2. Tourist Tax in Italy (Imposta di Soggiorno)
   Italy requires hosts to collect and remit a tourist tax (usually a small fee per person per night).

   • How it works: In some cities or regions, Airbnb automatically collects the tourist tax from guests and remits it directly to the authorities. Check the Airbnb help center for Italy-specific guidance.
   • If Airbnb doesn’t handle it for your area, you will need to collect the tax from guests and report it to the local municipality yourself.
   • Contact the Comune (local municipal office) in the city where your property is located to find out the exact process. Some municipalities require registration as a host before you begin renting.

3. Registering Your Activity in Italy
   Some Italian cities or regions require that you register as a short-term rental operator. This may include obtaining a CIR code (a unique identifier for your rental) or registering your property for compliance with Italian regulations. This process varies depending on the region, so check the local rules.

4. Bank Accounts and Payments
   You don’t need to open an Italian bank account; Airbnb can deposit payments into your Czech bank account. However, having a local Italian account could be beneficial if you’ll have regular expenses (e.g., cleaning services, maintenance) in Italy, as it avoids currency conversion fees.

5. Tax Filing

   • In the Czech Republic, report your Airbnb income as part of your total annual income. You’ll likely be able to deduct expenses related to the rental (e.g., cleaning, maintenance, supplies).
   • In Italy, even though you’re not a tax resident, some of your income may be taxable there (specifically tied to the rental property). If so, you’ll declare this in Italy and then offset it in the Czech Republic via the double tax treaty. Consider hiring a tax advisor who specializes in cross-border situations to ensure full compliance.

6. Practical Tips for Starting Your Airbnb in Italy

   • Professional Photos: Invest in high-quality photos. Italian properties stand out when they are well-presented.
   • Seasonal Pricing: Begin with competitive rates and adjust as you gain reviews. In Italy, summer months and holiday periods (e.g., Christmas) tend to be high-demand.
   • Local Team: Find reliable cleaners and handymen in Italy, especially if you don’t live nearby. Consider a local co-host if you need someone to handle check-ins or guest issues.
   • Language: Make sure your listing is available in multiple languages (e.g., Italian, English, and German), as Italy attracts a global audience.

I would recommend reaching out to an accountant or tax consultant familiar with Italian laws to set up the correct structure from the beginning. Mistakes in taxation or tourist tax compliance can lead to penalties, which you want to avoid.