Mass tax audits target Airbnb and property sales as fines pile up

Recent data reveal a widespread pattern of discrepancies in both declared income and real estate transactions, highlighting the scale of the issue.

According to 2025 figures, 2.46 million declarations for short-term rentals were submitted, with total reported income reaching €973.7 million, representing a 10% increase compared to the previous year. However, behind this growth, audit mechanisms identified significant discrepancies indicative of undeclared income and non-compliance with tax obligations.

Particular attention is drawn to real estate transactions. A total of 873 taxpayers were identified who, despite having paid transfer tax in 2019, failed to declare the relevant expenditure in their E1 tax forms. Following interventions by the Independent Authority for Public Revenue (AADE), 65% of them complied, revealing expenses amounting to €87 million and additional taxes exceeding €577,000. This suggests that underreporting is not limited to income alone but also extends to transactions.

In the short-term rental sector, 24,383 tax identification numbers were found to have undeclared income for the 2020–2022 period, following cross-checks with digital platforms. These cases primarily concern individuals without declared business activity, who are now required to submit amended tax returns. At the same time, 1,545 property owners with multiple holdings are under investigation, as they have either failed to declare the commencement of business activity or do not possess the appropriate business classification codes.

In addition, more than 12,000 properties were identified as lacking a valid registration number and were subsequently removed from digital platforms, reflecting the intensification of enforcement efforts and the growing use of digital monitoring tools.

The applicable penalties are particularly severe. Failure to register in the official registry results in a fine amounting to 50% of gross revenues, with a minimum of €5,000, which is doubled in the event of repeat violations. Inaccurate declarations incur a penalty equal to twice the rental income, while late submissions are subject to a €100 fine.

It should be noted that AADE places strong emphasis on combating tax evasion in the real estate market, with a key initiative being the activation of the Property Ownership and Management Registry (MIDA). Under the current plan, the system will, as of this year, record property ownership status and usage, facilitating cross-checks, the detection of undeclared rental income, and the identification of beneficiaries of public support.