Airbnb, like many large players in online commerce and tech, concentrates revenue from commissions at its parent company based in Ireland, a jurisdiction known for favorable tax conditions for multinational groups. The Spain-focused structure features a single subsidiary that handles both the Irish parent and the marketing and advertising responsibilities for the U.S.-based global enterprise.
The outcome of this straightforward, lawful tax approach is that Airbnb’s tax outlays in Spain are comparatively low, even though the Spanish market plays a significant role in tourism. The Spanish subsidiary reported corporate tax of 286,337 euros last year in Spain, as recorded in the company’s filings with the Commercial Registry. That amount is offset by a tax credit of 126,869 euros, which the firm plans to cover with future profits.
From its entry into the Spanish market in mid-2011 through the end of 2021, the company paid 1.15 million euros in corporate taxes and posted a net profit of 2.2 million euros, accumulated over a decade of operation and support activities.
Advertising Agency
The Spanish subsidiary, Airbnb Marketing Services SL, is registered in Barcelona and does not operate as a rental platform for tax purposes; instead, it functions as a marketing agency. The subsidiary’s income is derived from services billed to other group entities, which reduces reported profits and, in turn, lowers corporate tax payments.
As stated in the financial accounts, the corporate purpose of Airbnb Marketing Services is to provide marketing and targeting services and to contract with Airbnb Ireland UC to deliver those services. The Spanish subsidiary is listed under CNAE code 7311, which is the designation for advertising agencies.
Airbnb asserts that it complies with all tax regulations. It emphasizes that the official resources of the Prensa Ibérica group pay the applicable taxes in Spain where required and where operations occur. The company notes that Airbnb Marketing Services SL offers marketing and business support services in Spain and pays all relevant taxes. The Airbnb model is described as enabling many people to earn extra income that directly impacts their families and local economies.
Apartment Owners Are Taxed
The group’s position is that while Airbnb collects commissions centrally in another country (up to 18 percent of the rental amount), the remaining 82 percent accruing to apartment owners is taxed in Spain. The majority of economic activity generated via the platform remains within local communities through homeowner income and is subject to local taxation.
Airbnb maintains that it provides hosts with regular information to assist them with Spain’s tax obligations, offers the option to suspend host transactions to simplify taxation, and partners with independent organizations to help landlords understand their duties.
Airbnb states that it collaborates with Spanish and EU tax authorities to streamline taxation at the European level. The company has supported proposals to broaden the DAC directive on tax cooperation to cover digital platforms, with the aim of clearly defining the business conducted by platforms in each country through information sharing. It also supports OECD plans for a global minimum corporate tax rate of 15 percent on multinational firms.