Airbnb Settles €576M Tax Dispute with Italy

The settlement covers unpaid taxes from 2017 to 2021, marking a victory for the Italian government's crackdown on tax evasion.

Airbnb has agreed to pay €576 million ($621 million) to the Italian tax authorities to settle a tax dispute over unpaid taxes from 2017 to 2021.
The dispute arose from a 2017 law that required short-term rental platforms to withhold 21% of rental income from landlords and pay it to tax authorities, which Airbnb failed to do.
Airbnb will not seek to recover the unpaid taxes from its hosts, the majority of whom are ordinary families using the platform for supplemental income.
Airbnb had previously challenged the law in the EU Court of Justice, arguing it contravened the EU's principle of freedom to provide services, but the court ruled against the company.
The Italian government, under Prime Minister Giorgia Meloni, is planning to raise taxes on short-term rentals from 21% to 26% as part of efforts to combat tax evasion.