Over 2,000 Airbnb hosts in Brussels risk facing financial penalties and other legal consequences due to their neglect of paying taxes.
In Brussels, Belgium, a crackdown on non-compliant Airbnb hosts is underway, as the city aims to regulate the short-term rental market and ensure fair taxation.
The Brussels-Capital Region has made it mandatory for all short-term rental units to be registered with the Brussels Economy and Employment agency. This registration comes with the obligation to pay a tourist tax of €3 per night per rented room or property. Failure to comply with these rules can result in fines of €1,000 per unregistered accommodation unit, in addition to retroactive payments of unpaid tourist taxes.
Airbnb, the online accommodation platform, now automatically shares host income data with Belgian tax authorities, a practice that began in 2021. This data sharing is part of an effort to ensure that income from Airbnb rentals is declared as taxable income, typically 40% of gross rental income categorized as furnished rental income for tax purposes.
The enforcement actions against non-compliant hosts have affected around 2,000 Airbnb operators in Brussels, with fines and back taxes totaling between €1.5 and 2 million for the 2022 tax year alone. The sudden financial burdens have surprised many hosts, with some claiming insufficient information was available about their obligations.
The Brussels Councillor for Urban Planning, Anaïs Maes, stated that the aim is to avoid the hollowing out of residential areas and prevent the center of Brussels from becoming a "sterile environment". The aim is also to address housing shortages and avoid the housing cost increases seen in other European destinations.
Grégory Huon, president of Short-Term Rental Belgium, has called for any penalties to be fair and has argued that fines for non-registration reaching up to 2,000 euros are excessive and "completely disproportionate". Huon has also urged for clearer communication from authorities to help hosts understand their obligations.
Airbnb insists it keeps hosts informed about the need to respect the applicable laws and provides help and resources via its Help Centre. However, some hosts have complained about owing a significant amount to the tax authorities due to a lack of information.
This crackdown in Brussels follows similar actions in other European cities where authorities are tightening regulations on short-term rentals to address housing shortages and ensure fair taxation. The new rules and limits imposed on the Brussels short-term rental market were approved by the European Union's Court of Justice in 2016.
[1] https://www.brussels.be/en/news/brussels-cracks-down-on-non-compliant-airbnb-hosts [2] https://www.brussels.be/en/news/brussels-takes-action-against-non-compliant-airbnb-hosts [3] https://www.brussels.be/en/news/brussels-pursues-crackdown-on-non-compliant-airbnb-hosts [4] https://www.brussels.be/en/news/brussels-continues-crackdown-on-non-compliant-airbnb-hosts
- The financial burden of non-compliance with short-term rental regulations in Brussels has surprised many Airbnb hosts, leading to calls for fair penalties and clearer communication from authorities regarding personal-finance obligations.
- In an effort to ensure fair taxation and address housing shortages, Brussels has implemented strict policies and legislation towards short-term rentals, with the enforcement actions impacting over 2,000 operators and generating millions in fines and back taxes for the 2022 tax year.
- The Brussels crackdown on non-compliant Airbnb hosts is part of a larger trend in Europe, where cities are tightening regulations and implementing policy-and-legislation to cope with housing shortages and promote wealth-management in the industry and finance sector.
- General-news outlets have reported on the Brussels crackdown, noting the growing role of politics in shaping the short-term rental market and the implication for crime-and-justice issues such as housing affordability and tax evasion.
