Italian Authorities Seize $836 Million from Airbnb Over Alleged Tax Evasion

Italian law enforcement has seized approximately €779 million (equivalent to $836 million) from Airbnb for purportedly unpaid taxes. This action was initiated after prosecutors in Milan accused the home-sharing giant of failing to remit a 21 percent withholding tax on rental revenue amounting to €3.7 billion ($3.95 billion).

Under Italian law, landlords are obligated to pay a 21 percent tax on their rental earnings, and the responsibility for collecting this tax rests with rental providers such as Airbnb. Allegations from prosecutors suggest that Airbnb did not fulfill this obligation, violating Italian law and prompting the seizure by authorities.

Following the seizure, Airbnb responded to the BBC, expressing surprise and disappointment at the police action. The company stated it had been engaged in ongoing discussions with Italian tax authorities for months regarding the issue. Airbnb claimed compliance with EU laws and declared its intent to contest the case through legal means.

The legislation mandating home-sharing companies and rental providers to withhold the 21 percent tax from landlords dates back to 2017. Airbnb previously contested this law at the Court of Justice of the European Union, which ruled in favor of EU member states’ rights to enforce tax collection by rental platforms, requiring Airbnb’s compliance with Italian laws.

Beyond Airbnb, other American tech entities, including Meta (Facebook’s parent company) and Netflix, are under scrutiny by Italian authorities. Netflix settled a tax dispute last year, paying €55.8 million (about $59 million), while Meta is currently facing investigation for allegedly unpaid value-added taxes totaling about €870 million (approximately $928 million).

Airbnb’s tax issues are not limited to Italy; the company faces scrutiny in several major markets worldwide. Various cities like Dallas, Barcelona, San Francisco, and others have imposed restrictions on short-term rentals due to local protests and incidents, indicating a broader global trend of regulatory challenges for home-sharing platforms.