Do I have to tax Airbnb income?

Yes. Income from short-term rental is generally taxable — usually as rental income (Vermietung und Verpachtung). An exception applies only to occasional rental of temporarily used living space: if this income stays below €520 a year, it can remain tax-free for simplicity.

When does the rental become a business?

If you rent out not just the space but offer hotel-like extra services — such as daily cleaning, breakfast, laundry — or rent on a large scale, the tax office may assume business income. Then trade tax applies on top and different obligations apply.

Do I have to pay VAT on Airbnb income?

Short-term accommodation is VAT-liable. If you stay below the small-business threshold, you can use the small-business rule and show no VAT. If you exceed it, the accommodation is taxed at the reduced rate, extra services partly at the standard rate.

Does Airbnb report my income to the tax office?

Yes. Since the DAC7 directive, platforms like Airbnb and Booking.com must automatically report their hosts' income to the tax authorities. The tax office cross-checks this data against your tax return — so not declaring it stands out.

Airbnb Rental Tax 2026 in Germany: What to Know

Renting your own home on Airbnb sounds like easy extra income — until the question of tax comes up. And since the platforms report automatically to the tax office, the topic is more serious than ever in 2026. This guide shows what stays tax-free, when it becomes a business, and which costs you offset.

In short: Airbnb income is taxable (usually rental income). Only occasional rental under €520/year can stay tax-free. If you offer hotel-like services, business status looms with trade tax. VAT applies unless you’re a small business. Via DAC7, the platform reports your income automatically to the tax office.

The €520 exemption threshold for occasional hosts

If you temporarily rent out part of your owner-occupied home — such as a room while you’re on holiday — a simplification applies: if the income from it stays below €520 a year, you can leave it tax-free.

Important: this is a threshold (Freigrenze), not an allowance. From €520.01 the entire amount is taxable — not just the part above.

The normal case: rental income

If you’re above the threshold or rent regularly, you earn rental income (Vermietung und Verpachtung). You declare it on Anlage V and deduct the proportional expenses:

proportional cleaning, laundry, consumption costs
platform fees (Airbnb commission)
proportional depreciation and running costs

How Anlage V works is in Rental income and Anlage V 2026.

When it becomes a business

If you rent out not just space but, like a hotel, with extra services (daily cleaning, breakfast, reception, laundry) or on a large, organised scale, the tax office may assume business income. Consequences:

Trade tax (with a €24,500 allowance)
Business registration
possibly bookkeeping obligations

The line is fluid — the more “hotel-like”, the more likely a business.

VAT and small business

Short-term accommodation is VAT-liable. But: if you stay below the small-business threshold, you show no VAT (see Small business threshold 2026). If you exceed it, the reduced rate applies to the pure overnight stay, and partly the standard rate to extra services.

DAC7: the platform reports too

Since the DAC7 directive, Airbnb, Booking & co. report their hosts’ income automatically to the tax authorities. The tax office compares this data with your return. More in Online sales & DAC7. Consequence: not declaring it stands out.

Worked example

Ms Heine rents out her second home on Airbnb for 60 days in 2026, for a total of €6,000.

above the €520 threshold → taxable
expenses (commission, cleaning, proportional costs): €2,200
taxable surplus: €3,800 → at the personal tax rate
no hotel-like services → stays rental, not a business

Common mistakes

Misunderstanding the €520 as an allowance. One euro over makes everything taxable.
Underestimating platform reporting. DAC7 gives the tax office your figures.
Slipping into business status. Too many services turn rental into a business.
Forgetting expenses. Commission and proportional costs reduce the profit significantly.

How Restio helps

Whether tax-free, rental or business — the classification decides your tax but isn’t obvious. Restio helps:

Classify — describe how and how often you rent, and Restio tells you which category you fall into.
Find costs — photograph receipts; Restio assigns the proportional expenses.
Instant answers — ask in English or German: “Is my Airbnb rental a business?” or “What can I offset against the income?”

For distinguishing business status and the VAT, a tax advisor helps — Restio prepares your figures so the question is quickly settled.

Airbnb is convenient extra income — but not tax-free. Since DAC7, the tax office sees your income anyway. Those who know the €520 threshold, the business line and the deductible costs rent out relaxed and correctly. The basics are explained by the Federal Ministry of Finance.