Giant Airbnb pays 286 thousand euros in Spain by transferring its income to Ireland

Airbnb, like other large groups in the online commerce or tech industry, is centralizing all this revenue from commissions at its parent company headquartered in Ireland, a country that continues to offer tax benefits for multinational corporations. Regarding Spanish Treasury, the group has only one subsidiary, responsible for both the Irish parent company and the marketing and advertising duties for the global company based in the United States.

The result of this completely legal tax strategy is that Airbnb’s tax payments in Spain are very low, despite the Spanish market’s weight in the tourism business. Spanish subsidiary paid 286,337 euros in corporate tax last year In Spain, according to accounts deposited by the company in the Commercial Register. An amount that has a net effect on its results, as the firm has activated a tax credit of €126,869, which it will cover with profits it hopes to achieve in the coming years.

From its arrival in Spain in mid-2011 to the end of 2021, the company paid €1.15 million in corporate taxes and posted a net profit of €2.2 million, accumulated over a decade for business support activity alone. company.

Advertising agency

Spanish subsidiary, Airbnb Marketing Services SLis headquartered in Barcelona and does not engage in any activity related to tourist rentals for tax purposes; and It works just like an advertising agency. The local subsidiary’s income is discounted for services billed to other companies of the group, so recognized profits are reduced and with it, corporate tax payment.

As clearly stated in the financial accounts report, the corporate purpose of Airbnb Marketing Services is “limited to providing marketing and market targeting services and is hereby contracted with Airbnb Ireland UC to provide such services.” In fact, the Spanish subsidiary is listed under code 7311 of the National Classification of Economic Activities (CNAE), which is reserved for advertising agencies.

Airbnb complies with all tax regulations It is emphasized that the official company resources of the Prensa Ibérica group pay El Periódico de España, all applicable taxes where it is subject and where it operates. “Airbnb Marketing Services SL provides marketing and business support services in Spain and pays all applicable taxes. The Airbnb model is unique and allows many people to earn additional income that has a direct impact on their family and local economies.”

Owners of apartments are taxed

The group’s claim, although Airbnb’s commission income centralized in another country (up to 18% of the rental amount), The remaining 82% of the owners of touristic apartments is taxed in Spain.. “The vast majority of economic activity generated through the platform remains in local communities through homeowners’ income and is subject to local taxes.”

In this sense, Airbnb insists that the company provides periodic information to hosts to help them pay the taxes they must pay in Spain, enables the option to cancel all host transactions to ease taxation, and works with independent companies. organizations to help landlords understand their tax obligations.

Airbnb assures that it “works closely with Spanish and EU tax authorities to help simplify taxation at the European level.” The group has shown its support for expanding the community directive on tax cooperation between countries to include digital platforms (called DAC 7). ), to better define the business that platforms have in each country through information exchange, and also to support OECD plans to impose a minimum corporate tax rate of 15% on multinational companies.