What You’ll Learn in This Article

• How Airbnb differs from a standard lease agreement from a legal perspective

• What obligations you face as an Airbnb host

• Why taxes can become your biggest problem

• How to protect yourself legally and financially

Legal View – Airbnb vs. Lease Agreement

Airbnb rentals are usually classified as accommodation services, not a standard lease under the Civil Code. This means you may fall under regulations for providing accommodation, including the obligation to register with the local authority, report foreign guests to the foreign police, comply with fire safety standards, and, above all, pay taxes and possibly social and health insurance if you are considered a business.

If you rent out an apartment via Airbnb in violation of your homeowners’ association (HOA) rules or your lease agreement, you may face not only termination of the lease but also a lawsuit from neighbors or the HOA.

Example from Practice – Airbnb Income Backfired

A client rented out his apartment via Airbnb for two years, without reporting the income or paying taxes. He relied on the belief that “everyone does it and the tax office won’t notice.” Unfortunately, during an audit of another person, the tax office obtained access to his Airbnb booking data. The result was a calculation of tax arrears, penalties, and interest – totaling over CZK 180,000. To make matters worse, he was fined by the trade licensing office for unauthorized business activity. What was initially an “easy side income” turned into a financial disaster that cost him an entire year’s earnings.

“Advocate’s Advice”

If you’re considering Airbnb, don’t treat it as a casual extra income. Have a lawyer review your lease or HOA bylaws to make sure you’re not violating any rules. Also, consult an accountant to correctly set up your tax obligations – including VAT if you exceed the turnover threshold.