"It's Because of You"... Companies Responsible for Soaring House Prices and 1 Trillion Won Seized

Regulatory Movements Continue

Airbnb, the global accommodation sharing platform blamed for rising house prices in Italy, has had its assets seized over allegations of massive tax evasion.

On the 8th (local time), BBC and others reported that an Italian court ordered the seizure of 779.5 million euros (approximately 1.0937 trillion KRW) from Airbnb on the 6th.

Prosecutors stated that Airbnb failed to collect taxes on approximately 3.7 billion euros (about 5.1914 trillion KRW) of short-term rental income earned by homeowners from 2017 to 2021. They also said investigations are underway into three individuals who held managerial positions at Airbnb during this period.

An apartment in Italy. [Image source=Getty Images]

Airbnb Says "We Complied with the Law"

According to Italian law, homeowners must pay 21% tax on short-term rental income. Last year, Airbnb challenged this Italian law, which requires withholding a portion of rental income from homeowners and paying it to tax authorities, arguing that it conflicts with the European Union (EU) taxation principles.

However, the Court of Justice of the European Union, the EU's highest court, ruled that Airbnb must comply with Italy's requirements. In response, Airbnb stated, "We were surprised and disappointed by the measures announced by the Italian prosecutors."

[Image source=Pixabay]

Additionally, Airbnb spokesperson Christopher Nutley said, "Our European headquarters has been working with the Italian Revenue Agency since June to resolve this issue," adding, "Airbnb has complied with the law and will exercise our rights regarding this matter."

Airbnb Blamed for Housing Shortage and Overtourism

Meanwhile, since the COVID-19 endemic, calls to regulate shared accommodation businesses have grown louder in Italy. As homeowners rushed into the accommodation sharing business, the number of rental homes available to residents decreased, and house prices rose, causing problems.

Moreover, overtourism became controversial as residents suffered from noise and garbage due to excessive tourist influx. In response, the Italian government raised the tax rate from 21% to 26% for homeowners owning two or more shared accommodations. This was intended to reduce profitability and prevent homes from being used as Airbnb rentals purely for profit.

Beyond Italy, movements to regulate Airbnb continue worldwide. Since September, New York City in the United States requires residents who want to rent their primary residence for less than 30 days to register with city authorities and obtain permission. Additionally, homeowners must stay with guests, and the number of guests is limited to two.

Barcelona in Spain, Florence in Italy, Copenhagen in Denmark, and Penang in Malaysia have also restricted the use of private homes as Airbnb accommodations.

This content was produced with the assistance of AI translation services.