Airbnb and Short-Term Rental: How to Tax Your Income
Airbnb and Short-Term Rental: How to Tax Your Income in 2026
Renting out a flat through platforms like Airbnb or Booking.com has become a popular way to earn extra income in the Czech Republic. However, many property owners don't realise that hosting short-term guests follows a completely different tax regime than a standard long-term tenancy. Misclassifying your income can lead to back taxes, fines, and unnecessary headaches with the tax office.
In this article, we'll walk you through exactly how to tax your short-term rental income in 2026, when you need a trade licence, what your obligations to the local authority are, and when you need to register as a VAT payer.
Short-Term Rental vs. Long-Term Tenancy: A Fundamental Legal Distinction
The first step to getting your taxes right is understanding the difference between a standard tenancy and an accommodation service. Czech tax law treats these two activities in entirely different ways.
Long-Term Tenancy (§9 of the Income Tax Act)
If you rent your flat to a single tenant for several months or more under a tenancy agreement, your income is classified as rental income under §9 of the Income Tax Act. This regime is advantageous primarily because:
- You do not pay social insurance contributions on rental income
- You do not pay health insurance contributions on rental income
- You do not need a trade licence
- The income is exempt from VAT
Short-Term Accommodation via Airbnb (§7 of the Income Tax Act)
Hosting guests for short stays (typically a few nights) through platforms like Airbnb, Booking.com, or similar services is treated under tax law as an accommodation service — not a tenancy. The income is taxed under §7 as income from self-employment.
The Key Distinction
From the tax authority's perspective, short-term rental through Airbnb is a business activity, not passive rental income. This means you are required to pay social and health insurance contributions, obtain a trade licence, and keep tax records or proper accounts.
How the Tax Authority Distinguishes Tenancy from Accommodation
When assessing a case, the tax authority looks at factors including:
- Length of stay — short stays (days to weeks) point towards an accommodation service
- Additional services — cleaning, linen changes, breakfast, reception
- Frequency and regularity — a regular turnover of guests
- Listing on platforms — being listed on Airbnb, Booking, etc.
- Pricing structure — a per-night rate vs. a monthly rent
If most of these criteria apply to you, your activity is an accommodation service taxable under §7.
Trade Licence: When Do You Need One?
To provide short-term accommodation through Airbnb, you need a trade licence. Specifically, this is a free trade with the business subject of "Accommodation Services."
How to Obtain a Trade Licence
📋Steps to Obtain a Trade Licence
Useful Tip
The Unified Registration Form allows you to simultaneously register with the tax office, the social security administration, and your health insurance provider. You don't need to visit each authority separately.
What Taxes Do You Pay on Airbnb Income?
Personal Income Tax (15%)
Income from short-term accommodation is taxed at a rate of 15% (or 23% on the portion of the tax base exceeding 36 times the average wage). You have two options for calculating your tax base:
1. Actual expenses — you record and document all real costs associated with the accommodation (utilities, cleaning, repairs, depreciation, insurance, platform fees, etc.)
2. Flat-rate expenses — you deduct a percentage of your income without needing to document individual costs:
- 60% of income, if you hold a trade licence (max. 1,200,000 Kč)
- 40% of income, if you operate without a trade licence as other self-employment income (max. 800,000 Kč)
- 30% of income, if you were to declare the income as rental under §9 (max. 600,000 Kč)
Example: Tax Comparison Under §7 vs. §9
| Item | §7 (accommodation, 60% flat rate) | §9 (rental, 30% flat rate) | |---|---|---| | Annual Airbnb income | 500,000 Kč | 500,000 Kč | | Flat-rate expenses | 300,000 Kč (60%) | 150,000 Kč (30%) | | Tax base | 200,000 Kč | 350,000 Kč | | Income tax (15%) | 30,000 Kč | 52,500 Kč | | Taxpayer's basic allowance | −30,840 Kč | −30,840 Kč | | Tax after allowance | 0 Kč | 21,660 Kč | | Social insurance (29.2%) | 29,200 Kč | 0 Kč | | Health insurance (13.5%) | 13,500 Kč | 0 Kč | | Total contributions | 42,700 Kč | 21,660 Kč |
Note: Under §7, social and health insurance is calculated on 50% of the tax base. Under §9, no social or health insurance contributions are due.
Watch Out for This Catch
Even though taxation under §9 may look more attractive, you simply don't have that option for short-term Airbnb accommodation. The tax authority classifies this activity as an accommodation service (§7), and if you report it as rental income (§9), you risk back taxes and penalties.
Social and Health Insurance Contributions
Because Airbnb income falls under §7, you are required to pay:
- Social insurance — 29.2% of the assessment base (50% of your profit), with a minimum monthly advance payment of 5,720 Kč in 2026
- Health insurance — 13.5% of the assessment base (50% of your profit), with a minimum monthly advance payment of 3,306 Kč in 2026
If Airbnb is a secondary activity for you (for example, you are also employed), you are not required to pay social insurance advance payments as long as your profit from the secondary activity does not exceed the threshold set by the ČSSZ for 2026.
VAT and Short-Term Accommodation
When Are You Required to Register for VAT?
You are required to register for VAT once your turnover in a calendar year exceeds 2,000,000 Kč. Since 2025, turnover is calculated on a calendar year basis (rather than over any rolling 12-month period, as was previously the case).
There is also an immediate threshold of 2,536,500 Kč (100,000 EUR) — if you exceed this, you become a VAT payer immediately.
The VAT Rate for Accommodation Services
Short-term accommodation services are subject to the reduced VAT rate of 12%. This applies to accommodation provided through Airbnb as well.
Voluntary VAT Registration
If you are investing in furnishing your flat or carrying out renovations, voluntary VAT registration may be worthwhile. You can then reclaim input VAT on your purchases. However, consider the administrative burden — as a VAT payer, you must file VAT returns, submit control statements, and potentially file summary statements.
Local Accommodation Fee
As a provider of short-term accommodation, you are required to collect a local accommodation fee from your guests and remit it to the relevant local authority.
Key Rules
- The fee rate is set by the local authority's binding decree, up to a maximum of 50 Kč per person per commenced day of stay (the day of arrival is not counted)
- You collect the fee from guests and pay it to the local authority
- You must maintain a guest register with details of each guest
- The fee applies to Airbnb-style accommodation as well
Example: Prague
In Prague, the accommodation fee is 50 Kč per person per night (the maximum rate). If guests stay for 3 nights, you collect 150 Kč from each guest (3 × 50 Kč — in Prague, nights are counted rather than days).
The eTurista System
The Czech Republic is developing an electronic system called eTurista, which is intended to unify the registration of accommodation and guests nationwide. It was originally due to launch in 2025, but its introduction has been delayed. Keep an eye on updates from your city or local authority.
Practical Obligations Step by Step
What You Need to Do Before You Start Renting on Airbnb
📋Complete Checklist for New Hosts
Ongoing Obligations Throughout the Year
- Monthly/quarterly: Pay advance contributions for social and health insurance
- On an ongoing basis: Collect the local accommodation fee from guests and remit it to the local authority
- On an ongoing basis: Maintain tax records and your guest register
- By 1 April 2026: File your income tax return for 2025 (or by 2 May 2026 if filing electronically)
- By 4 May 2026: Submit income and expenditure statements to the ČSSZ and your health insurance provider
How to Record Your Airbnb Income and Expenses
Income
Your income consists of the amounts paid out to you by the platform. Important note — your income is the full amount the guest pays for the accommodation (excluding any service fee charged to the guest by the platform). The platform fee deducted from your payout is your expense.
The Most Common Allowable Expenses (when using actual expenses)
- Platform fee from Airbnb/Booking (typically 3–5% of the accommodation price)
- Utilities (electricity, gas, water) — proportionate share
- Cleaning and laundry
- Bed linen, towels, and toiletries
- Repairs and maintenance
- Property insurance
- Depreciation of the property or furnishings
- Internet and television services
- Property management fees (if applicable)
- Photography of the flat for your listing
Recording Receipts via WhatsApp
Tracking your Airbnb income and expenses doesn't have to be complicated. With DokladBot, all you need to do is snap a photo of a receipt — for cleaning, laundry, or repairs — and send it via WhatsApp. The AI automatically recognises the amount, date, and expense category. Everything is neatly stored in one place, with no complex accounting software required.
Common Mistakes Made by Airbnb Hosts
1. Declaring Income as Rental Rather Than Business Income
This is the most common mistake. Short-term accommodation via Airbnb is an accommodation service (§7), not a tenancy (§9). Incorrect classification can result in back payments of social and health insurance contributions.
2. Operating Without a Trade Licence
Providing accommodation services without a trade licence is an offence punishable by a fine of up to 500,000 Kč.
3. Ignoring Local Accommodation Fees
The obligation to collect and remit the local accommodation fee applies to Airbnb hosts as well. Failure to comply can result in sanctions from the local authority.
4. Not Declaring All Income
Your income is the full amount charged for the accommodation, not just what the platform transfers to your bank account. The platform fee is your expense.
5. Not Taking Advantage of Flat-Rate Expenses
If you hold a trade licence, you can claim flat-rate expenses of 60%. This is often more advantageous than claiming actual expenses, particularly if your costs are relatively low.
Frequently Asked Questions (FAQ)
Do I have to declare Airbnb income even if it's just occasional extra earnings?
Yes. Income from short-term accommodation must be declared regardless of the amount or how often you earn it. The only exception is if your total income from self-employment does not exceed 6,000 Kč for the year and the activity is genuinely occasional — a threshold that regular Airbnb hosting will typically not meet.
Can I declare Airbnb income as occasional income under §10?
Not if the activity is repeated and regular. A one-off rental of your flat for a few days could theoretically fall under §10, but repeatedly offering accommodation through a platform is treated by the tax authority as a business activity.
Is VAT due on Airbnb's platform fee?
Airbnb is an Irish company, so if you are a VAT payer, when you receive a service from Airbnb (the service fee), you are required to declare VAT under the reverse charge mechanism.
What if I only rent out a single room in my own flat?
Even renting out a single room for short-term stays counts as an accommodation service. The same rules apply — a trade licence, taxation under §7, and social and health insurance contributions.
How does joint property ownership work?
If a property is owned by more than one person, income is typically divided according to each owner's share. Each co-owner then declares and pays tax on their respective share.
Summary: Key Takeaways
📊Comparison: Long-Term Tenancy vs. Airbnb
Let Us Help You Stay on Top of Your Records
Running an Airbnb comes with a range of administrative responsibilities — from tracking income and expenses to paying insurance contributions and local fees. But you don't have to handle it all on your own.
DokladBot is your AI accounting assistant, right inside WhatsApp. Snap a photo of a receipt for cleaning, laundry, or repairs, send it via WhatsApp, and DokladBot logs it automatically. By the end of the year, you have a complete overview of all your Airbnb income and expenses — stress-free and without any complicated software.
Official Sources and Links
- Czech Financial Administration — Income Tax — official information on income taxation
- Czech Financial Administration — VAT — information on VAT registration and rates
- Czech Social Security Administration (ČSSZ) — information on social insurance for the self-employed (OSVČ)
Disclaimer: This article is for informational purposes only and does not constitute tax advice. For guidance on your specific situation, we recommend consulting a qualified tax adviser. Information is accurate as of February 2026.
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