2,000 Airbnb landlords in Brussels fined for not paying tourist tax

Brussels tax authorities have imposed heavy fines on owners of 2,000 properties rented on Airbnb for their failure to pay the proper taxes.

On top of the fines is a retroactive payment of taxes for the individuals who had listed properties for rent on the platform but skirted the law, RTBF reports.

According to Le Soir, between €1.5 and €2 million could be recovered for 2022 alone.

The regularisation stems from a dispute between Airbnb and the Brussels region, which was settled before the European Court of Justice (ECJ) in 2022.

The ECJ ruled that a Brussels order of December 2016 on the tax on tourist accommodation did not contravene EU law. One of the articles of the order requires intermediaries, including Airbnb, to provide the tax authorities with data on operators, tourist accommodation units operated and the number of overnight stays.

Airbnb was finally forced to comply, handing over information about hundreds of Brussels residents who were illegally skirting the law.

One of these owners, Joséphine, told RTBF that she felt "ripped off" for having to pay taxes on the money she earned renting one of her properties to tourists through the American-based company, as Brussels grapples with a drastic shortage of housing.

“They know exactly how to find you to send the fine, but they didn't send me a warning or a letter saying that the rules had changed, so it's a bit like getting a fine for driving over 50 km/h when there's no sign,” the landlord said.

“It's disproportionate, but no one is supposed to be ignorant of the law.”

Studies have long shown that the American corporation Airbnb has had a negative effect on the local housing markets of European cities.

A 2021 study on Brussels alone found that nearly half of listings on the platform were of professional leasing companies, not "authentic, local hosts" as the corporation once promised. This means that many suitable homes sit empty most of the year when not occupied by tourists, while actual residents struggle to find a place to live.

“I estimate there are more than 5,000 Airbnb dwellings in the very tight, very expensive housing market of Brussels, and that’s more than 5,000 dwellings that are not going to local inhabitants,” Professor Dr Pieter-Paul Verhaeghe, a sociologist at VUB, said at the time.

The 2016 order stipulates that operators who have not registered their tourist accommodation must pay a fine of €1,000 per unit. They must also retroactively pay the tax of €3 per night for private accommodation.

Grégory Huon, president of Short Team Rental Belgium, an association of owners of properties rented out for short stays on Airbnb and other online platforms, has reminded landlords that “just because you’re a private individual doesn't mean you're exempt from your tax obligations.”

“I think that what Brussels Taxation is doing is applying the regulations in force,” Huon said.

“However, we still insist that the fines imposed should be proportionate, and we are still hearing of cases where, for a few nights’ rental per year, a tax of €2,000 is automatically imposed for failure to register with Brussels Taxation. We find that completely disproportionate.”

Airbnb said in a statement that it "continues to inform Brussels hosts of the need to comply with all applicable regulations when listing on the platform. We are committed to supporting them in understanding and complying with local requirements, including through the resources available in our help centre and regular communications on regulatory updates."

Airbnb, for its part, denies wrongdoing and claims to support the regulations that it fought against for years.

“For years, we have been advocating for common-sense rules that allow Brussels hosts to rent out their homes occasionally in a legal and straightforward way,” the American company said in a statement.

“The current situation only highlights the need for clear and balanced regulations on short-term rentals. We remain very open to dialogue with local officials to help develop rules that work for hosts, travellers and the local community.”