payment

Sandra726
Level 1
Blaxland, Australia

payment

I am wondering how payment works if you have a property in a different country from where you live. I understand that the income is paid directly into your account. If your bank account is in your home country then does this mean you pay taxes on the income in your home country even though you have earnt the money in the country of the property you are hosting?

Thank-you,

Sandra.

2 Replies 2
Clare0
Level 10
Templeton, CA

@Sandra726 You will need to consult a tax professional on this, sadly.  A tax expert will be able to evaluate the entire scope of your earnings and will be able to check the tax laws not only in the country where you reside and where you presumably are a citizen as well as the country where the income is earned.  

 

I'm in the US and in general, if I pay income taxes to another country, I do not need to pay them again to the Internal Revenue Service. 

This rule may be different in Australia.  

 

Perhaps another host who has a similar situation as you might be able to give you more insight, but I definitely would consult a tax professional. 

Raf3
Level 2
San Francisco, CA

US persons have to report income on foreign sourced income.  Foreigners with US sourced income have to report the income to the US. The location of the bank account isn't the factor. There is a foreign tax credit under US rules available so that you don't double pay.

https://assets.airbnb.com/eyguidance/us.pdf