Do you think you are renting an apartment on Airbnb from a local person who is just earning extra money? A new investigation shows that the short-term rental market in Bratislava is controlled by professional companies, which often hide behind fake names. The tax administration, for its part, reminds people of the duty to declare such income.
How the Airbnb Market Works in the Capital
The short-term accommodation rental market in Bratislava has long ceased to be a platform for individual apartment owners. Instead, professional companies have taken over, managing dozens, and sometimes hundreds, of properties. This was revealed according to a new investigation by journalists from the Ján Kuciak Investigative Center (ICJK).
The way these companies operate is quite simple:
- They take apartments from owners to manage, promising them stable income without hassle.
- On platforms like Airbnb or Booking.com, they create profiles with friendly names, such as "Martin" or "Jana," to give the impression of communicating with a private host.
- In reality, behind these profiles are entire teams of managers, cleaners, and administrators.
This model creates a transparency problem. Neither neighbors nor city authorities often know who is actually responsible for the business operating in a residential building.
Tax Office Reminds: Income Must Be Declared
Amidst the growing market, the Tax Administration of Slovakia (Finančná správa) is increasing its control over income from short-term rentals. Many landlords, especially beginners, may not know that such income is subject to mandatory taxation.
Providing accommodation through online platforms for a short term is considered not as regular rent (prenájom), but as providing accommodation services (ubytovacie služby). This is entrepreneurial activity, which requires proper registration and tax payment.
What Obligations Does a Landlord Have?
If you rent out accommodation through Airbnb, Booking, or similar services, you must:
- Register with the tax office. Before starting your activity, you need to obtain a tax identification number (DIČ). Most often, this involves opening a business license (živnosť).
- File a tax return. All income received must be declared in your annual tax return (daňové priznanie), and you must pay income tax on it.
- Pay local tax. In addition to income tax, the landlord is obliged to collect a tourist tax (miestna daň za ubytovanie) from guests and transfer it to the city budget. In Bratislava, the rate is €3.50 per person per night.
Failure to meet these requirements can lead to significant fines and legal problems. The tax administration provides detailed explanations on taxing income from real estate.
What Does This Mean for You?
The situation in the short-term rental market affects both those who rent out accommodation and those who look for it.
- If you rent out an apartment: Make sure your activity is properly registered. Ignorance of the law does not excuse you from responsibility. If you cooperate with a management company, clearly state in the contract who is responsible for paying taxes.
- If you are looking for accommodation: Be prepared that behind the profile of a "friendly host" might be an impersonal company. This is not always bad – the service might be more professional. However, it also explains why short-term rental prices in the city center are often high, and the number of offers for long-term stays is decreasing.
