Airbnb to report homeowners' income to Danish tax authorities

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COPENHAGEN (Reuters) - Airbnb will automatically report homeowners’ income to Danish tax authorities in what will be the first such agreement globally for the short-term rental service.

The agreement is aimed at making tax avoidance easier to detect and comes as Airbnb, like its taxi-hailing peer Uber, faces growing pressure from regulators worldwide.

As part of the agreement, which is still to be passed by the Danish parliament, the number of days an owner may list a property is limited to 70 per year. It also includes a tax-free allowance of up to 40,000 Danish crowns ($6,350) annually.

“We want a flourishing sharing economy in Denmark where it is possible for renters to earn a reasonable tax-free amount on making their property available,” said the Danish tax minister Karsten Lauritzen.

“But it is under the condition that tax payments are in order,” he added.

Airbnb and similar rental platforms have also faced criticism for driving up property prices and contributing to a housing shortage in big cities such as Paris, Berlin and Amsterdam.

The company said more it had more than 30,000 renters in Denmark in 2017 and more than 900,000 visiting users.

Reporting by Emil Gjerding Nielson; Editing by Stine Jacobsen/Keith Weir