Over 2,000 Airbnb hosts in Brussels may face financial penalties and other sanctions due to their failure to pay taxes
In the heart of Europe, the Brussels-Capital Region has taken a firm stance against non-compliant Airbnb hosts who have evaded their tax obligations. The regional authorities have been rigorously enforcing rules, issuing fines, and collecting back taxes, targeting an estimated 2,000 hosts.
The crackdown, spearheaded by Brussels Councillor for Urban Planning, Anaïs Maes, aims to prevent the city centre from becoming a sterile environment and to avoid the hollowing out of residential areas and soaring housing costs.
Airbnb hosts in Brussels are required to comply with a range of regulations, including obtaining fire safety certificates, undergoing criminal record checks, and adhering to urban planning stipulations. They must also register their tourist accommodation with the Brussels Economy and Employment agency and pay a €3 per night city tax.
Failure to comply comes with significant consequences. Hosts who fail to register their properties face fines of €1,000 per unregistered unit. If they also avoid paying the city tax, authorities demand retroactive payments that can amount to thousands of euros.
One Airbnb hostess in Brussels has complained about owing a significant amount to the tax authorities due to a lack of information. However, Airbnb insists it keeps hosts informed about the need to respect applicable laws and provides help and resources via its Help Centre.
The Brussels authorities have recouped an estimated €1.5 to 2 million in unpaid taxes in the 2022 tax year alone. This crackdown follows similar actions in other European cities, such as Paris and Berlin, to address housing shortages and ensure fair taxation.
The regional tax authorities are intensifying efforts to ensure that short-term rental hosts declare their income and pay the required taxes. Grégory Huon, president of Short-Term Rental Belgium, calls for any penalties to be fair, arguing that fines for non-registration reaching up to 2,000 euros are excessive and "completely disproportionate".
The new rules and limits were imposed as part of a crackdown by Brussels Capital Region officials and the European Commission. Approximately 1,800 Airbnb accommodations in Brussels have been identified as non-compliant with tax obligations.
The crackdown on Airbnb hosts in Brussels is part of a broader effort to regulate the short-term rental market and address housing shortages. Airbnb has been forced to share fiscal data, rental proposals, and room occupancy information with the city of Brussels.
In summary, to comply, Brussels Airbnb hosts must register each accommodation unit with a unique registration number, collect and remit the €3 city tax per rented night, declare income from rentals and pay relevant income tax, and fulfill safety and urban planning regulations. Consequences of non-compliance include €1,000 fines per unregistered unit, retroactive payment of city tax (€3 per night), potential fines adding up to thousands of euros, creating significant financial liability, and potential legal action.
In light of the ongoing crackdown on Airbnb hosts in Brussels, it's crucial for them to adhere to strict regulations regarding finance and business. This includes registering their properties, paying the city tax, and declaring their rental income to ensure compliance with tax obligations. Failure to do so can result in severe consequences, such as hefty fines, retroactive payments, and even legal action, potentially leading to significant personal-finance issues.
