Airbnb only paid 86,000 euros in Spain for corporate tax

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

Airbnb invoiced 5.6 million euros and earned 264,000 euros in 2018

The Airbnb shared hosting platform continues to bring down landmarks. This year, it has already exceeded 7 million ads worldwide and in Spain, one of its most important markets, has already exceeded half a million. A growth that has fattened their accounts in 2018, reflecting the divergence between their income and their tax bill. 

Last year, the company invoiced 5.6 million euros in Spain, which represented 22.1% more than twelve months earlier, and obtained a profit of 263,572 euros, 23.1% more annually. On the other side, what the company pays for the corporate tax (which taxes corporate profits) is barely 86,000 euros compared to 72,000 subscribers a year earlier.

Why does this mismatch occur between what you invoice and what you pay in taxes? The company's tax office in Europe is in Ireland, a low tax country, in which the rate that companies pay for their benefits is 12.5%, half of which is paid in Spain. 

The giant of tourist accommodation follows the steps of other multinationals such as Google or Facebook to try to minimize your tax bill. Thus, the bulk of the income obtained in Spain, from the commissions charged to the owner of the house and the tenant of the tourist apartment, are taxed to the parent company in Ireland, while in Spain only marketing services are billed.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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