Under pressure from local tax authorities, Airbnb has turned over user data to the city of Brussels, sparking a wave of tax enforcement actions.
As a result, hundreds of hosts are now facing fines for unpaid municipal taxes related to their short-term rentals.
Belgian newspapers L’Echo and Le Soir report that Brussels tax officials, armed with the information provided by Airbnb, have started issuing penalties and back-tax demands to residents who have rented out their properties through platforms like Airbnb in recent years.
Many local hosts have been taken aback by tax bills that amount to thousands of euros. According to Le Soir, officials estimate that the city could collect between €1.5 to €2 million in back taxes just for the 2022 tax year.
Airbnb Forced to Comply After Legal Battle
This extensive enforcement campaign follows a legal battle between Airbnb and the Brussels-Capital Region, which was resolved in 2022 by the European Court of Justice. The court ruled in favor of Brussels, affirming that the city’s 2016 ordinance on taxing tourist accommodations is in line with EU law.
A crucial part of the regulation mandates that rental platforms like Airbnb provide detailed data to tax authorities, including host identities, property listings, and the number of overnight stays. Following the court’s ruling, Airbnb complied and shared the requested data, allowing local officials to enforce tax regulations more effectively.
Fines and Back Taxes for Non-Compliant Hosts
According to the 2016 ordinance, any host who hasn’t officially registered their property for tourist accommodation faces a fine of €1,000. Moreover, all short-term stays are subject to a retroactive city tax of €3 per night.
These developments represent a significant shift in Brussels’ approach to regulating short-term rentals and could serve as a blueprint for similar enforcement actions in other EU cities looking to recover unpaid taxes from home-sharing platforms.
