Around the world, Airbnb is working with cities on regulations and proposals that diversify tourism, protect housing and make it easier for more hosts to pay more tax. Already we have worked with more than 500 governments and organizations globally, and we have partnered to collect more than $2 billion in hotel and tourist taxes on behalf of hosts and guests.
We have always maintained that clear rules and regulations would benefit our community and that partnering with countries and cities, from Japan to San Francisco, would be critical for the long-term and sustainable growth of our business.
Last year, and following numerous positive consultations with Airbnb, the Danish government passed new and innovative rules for home sharing. The new rules make it clear that Danes are free to share their homes with guests and make income tax simple for everyone. They also include new benefits – including increased day limits and tax-free earnings – for hosts who use platforms that collaborate with the government and share typical information to ensure their tax compliance.
Airbnb was the first to welcome these rules and to sign a collaboration agreement with the Danish government to ensure hosts on Airbnb can benefit from them and to help hosts follow the rules.
Our plan is working and today*, almost one year since the law was enacted, there are more listings on Airbnb in Denmark than ever before and data indicates strong rule compliance amongst hosts:
- More listings on Airbnb than ever before – Since the new rules came into effect, we’ve seen more and more Danes list their homes on Airbnb. On 1 November 2019, we counted over 70,000 listings on Airbnb in Denmark, offering our global network of loyal guests more places to stay than at any time since Airbnb has been operating in Denmark.
- Following the rules – Our collaboration with the Danish government has kick-started a trend towards a greater number of occasional hosts in Denmark. So while more Danes are sharing their homes, their homes are typically being shared less frequently. Many are also making use of the new tax free limits. A typical entire home listing on Airbnb in Denmark was shared for 21 days during 2019, which is less than in 2018 and far below the new maximum of 70 days**. The typical yearly host account income (DKK 17,000 in 2019) is also far below the new tax-free limit of DKK 28,000.
- More travelers on Airbnb than ever before – During 2019, over 1.1 million people visited Denmark via Airbnb, which is the highest number ever recorded in Denmark. Equally, as Airbnb becomes more mainstream in Denmark, over 1 million Danes used Airbnb to travel themselves domestically or internationally, which is higher than the year before and equally a new record.
- More destinations – Our fastest growing destinations in Denmark are in towns and cities outside of the big cities, helping to spread the benefits of tourism across the country. Løgumkloster in South Denmark for example is our top trending destination in Denmark for 2019, experiencing a 305% increase in bookings compared to the year before.
- Private rooms – The share of private rooms in the total amount of listings on Airbnb in Denmark has almost remained unchanged since the new rules came into force.
- Transparency – In January 2020, the tax authorities will receive for the first time earnings data of hosts on Airbnb with a listing in Denmark for bookings from 1 July, 2019. The shared information will help make tax simpler for everyone and ensure that the right amount of tax is paid.
Clear and proportionate home sharing rules provide a solid foundation for the sustainable growth of our business and are good news for everyone. As we continue to grow, we will continue working closely with the Danish government, as well as other authorities across the region.
Pieter Guldemond, Head of Public Policy for the Nordics at Airbnb
Last year, Airbnb shared data that showed responsible growth of the Airbnb community in both San Francisco and Japan – following the introduction of new home sharing rules and renewed partnerships with Airbnb.
* Comparison between Nov 2017-Nov 2018 and Nov 2018-Nov 2019.
** This 70 day limit can be raised by cities to 100 days yearly.