How do I do my Tax when Hosting a listing in another country?

[Jemal1]

Hi,

We currently have a listing in a country where we regardless have to pay about 11% in taxes on our property. Because of interneational wiring and all of those annoying routes it takes so long to get money transfered to the bank account in that country. We wanted to know If we would set up a bank account specially for the Airbnb payouts in the U.S if we will be having to pay double taxes?? We are already paying all required taxes in the other country, but if we were to begin sending the money in the U.S (which would make it easier for Airbnb i'm assuming) would that cause us to pay double taxes?? AKA in U.S and the other country?>

[Gerry-And-Rashid0 · Accepted solution]

@Jemal1

My understanding is that as a US resident/citizen you need to declare all income whether earned in the US or overseas...

Certainly that is the case for US citizens in Europe - they must declare income earned here and in the US. It often means additional tax needs to be paid. The only way around this, which some people do, is to give up US citizenship (which also has a cost involved)

Perhaps someone else in the US with a property abroad can shed more light on what needs to be declared

[Jemal1]

.Thank you for the response Gerry/Rashid. New to all of this so just trying to figure it all out and do it in the appropriate manner. 

[Kiera89]

Can you give me update about how you resolved this? Do you pay taxes in both countries? I am starting a Airbnb in another country and I just don't know if I need to declare I am making income from the property I list in the other country.

[Uli26]

I have asked Airbnb about this on several occasions and they simply can not or will not give me a straight answer. So basically if you have a listing in the US and in another country, they can not tell you if you need to pay taxes on both properties in the US or individually in each country. And that is so crazy when you think about it, because they gladly let you list a bunch of properties in several countries and receive the profit from that, but they are not equipped or interested in clearly explaining the tax situation.

[Kiera89]

Do you have a airbnb in another country? Do you pay taxes in both countries? I am starting a Airbnb in another country and I just don't know if I need to declare I am making income from the property I list in the other country.

[Uli26]

Hey.I have asked Airbnb about this on several occasions and they simply can not or will not give me a straight answer. So basically if you have a listing in the US and in another country, they can not tell you if you need to pay taxes on both properties in the US or individually in each country. And that is so crazy when you think about it, because they gladly let you list a bunch of properties in several countries and receive the profit from that, but they are not equipped or interested in clearly explaining the tax situation.

[Laura2592]

@Jemal1 you need the advice of a good tax accountant familiar with international real estate holdings. So many factors go into this that unless someone HERE is  a good tax accountant familiar with international real estate holdings, you are going to get poor advice. Sometimes you have to pay for the correct information .

[Umut26]

If I have a US-based real estate LLC and rent a building long-term under the LLC and list that property on Airbnb? I will have the lease agreement state that I can sublease. What are the tax-deductible items on that business income?