A judge in Italy has ordered the confiscation of €779 million from rental platform Airbnb. The company is suspected of not paying taxes on rental income between 2017 and 2021.
According to a 2017 law, Airbnb had to pay 21% of rental income to the Italian tax authorities. But the company failed to do so, Milan prosecutors say.
Airbnb has previously challenged the law. But in December, the Court of Justice of the European Union ruled in favor of the Italian government.
Airbnb said in a statement that it was “surprised and disappointed.” A company spokesperson said: “We are confident that we acted in full compliance with the law and intend to exercise our rights in relation to this matter.”
The Meloni government wants to crack down on tax fraud
Earlier this year, prosecutors in Milan also launched an investigation into Meta Platforms, Facebook’s parent company, among other companies. This company is also accused of not paying value-added tax worth a total of about 870 million euros, insiders told the news agency in February. Bloomberg.
Prime Minister Giorgia Meloni’s government wants to crack down on tax fraud by rental platforms. For example, there is a plan to increase tax rates for owners of multiple short-stay rental properties from 21 to 26 percent.