Short-term letting through Airbnb or Booking is taxed differently in Slovakia and Czechia, even though the underlying question is the same: is it passive rental of property, or an accommodation service that counts as business? Both countries treat a typical Airbnb — where guests rotate every few nights and cleaning and linen changes are provided — as a business activity rather than passive rental, but the sections, rates and thresholds differ. In both, the platform reports your income to the tax authority under DAC7.
Is short-term letting rental or an accommodation service?
In Slovakia, the Income Tax Act (No. 595/2003 Coll.) separates passive rental under § 6(3) — where you provide little more than the premises and utilities — from an accommodation service under § 6(1), which requires a trade licence and arises once you add hotel-type services such as cleaning during the stay, linen changes, check-in and check-out, or breakfast. A typical Airbnb falls under § 6(1).
In Czechia, the line is drawn by the purpose and length of the stay. Short stays for recreation are an accommodation service taxed as self-employment income under § 7 of the Income Tax Act (No. 586/1992 Coll.), not as rental under § 9; the 30 % expense allowance reserved for § 9 rental cannot be used for it. The practical outcome is the same in both countries — a real Airbnb operation is business, not passive rental — but the legal route differs. Our note on rental, capital and other income covers the Slovak categories in detail.
How does income tax and social insurance compare?
In Slovakia, business income under § 6(1) is taxed from 2026 at 15 % up to EUR 100,000 of taxable income, with a progressive scale of 19 % to 35 % above that; you may claim a flat 60 % expense allowance capped at EUR 20,000, and you pay social and health contributions. The passive § 6(3) regime, by contrast, carries no contributions and a EUR 500 exemption, but rarely applies to a genuine Airbnb.
In Czechia, § 7 accommodation income is self-employment income subject to social and health insurance, with a 60 % flat expense allowance for licensed activity (40 % without). The § 9 rental regime, with its 30 % allowance and no insurance, is reserved for genuine long-term letting. So in both countries stepping into the accommodation-service category brings insurance costs that passive rental avoids. The 2026 Slovak rate scale is explained in our article on progressive taxation from 2026.
When does VAT apply, and at what rate?
Providing accommodation is an economic activity, so VAT rules apply in both countries — and here the difference in rates is sharp. In Slovakia the standard 23 % rate applies to accommodation, and you become a VAT payer once turnover exceeds EUR 50,000 per calendar year (immediately above EUR 62,500). In Czechia accommodation services fall under the reduced 12 % rate, with registration triggered by turnover over CZK 2,000,000 per calendar year (immediately above CZK 2,536,500).
In both countries a hidden obligation exists regardless of turnover. The commission Airbnb or Booking deducts is a service received from abroad: in Slovakia this may oblige a non-payer to register under § 7a, in Czechia it typically makes you an identified person who must declare the tax on it. Who is caught by these rules is covered in our note on who must pay VAT on economic activity.
What do Airbnb and Booking report under DAC7?
Since 2023, operators of digital platforms in both countries must report hosts and their income to the tax authority. Slovakia transposed the DAC7 directive through Act No. 442/2012 Coll. (as amended by Act No. 250/2022 Coll.), and Czechia through Act No. 164/2013 Coll. In both, the platform reports your identity and income by 31 January of the following year.
The effect is identical: the tax authority sees your platform turnover and compares it with your return. Undeclared Airbnb income does not stay hidden — DAC7 surfaces it and exposes you to back-assessed tax and interest. A non-compliant platform faces a fine of up to CZK 1.5 million in Czechia and up to EUR 10,000 in Slovakia. DAC7 is not a new tax; it is a transparency tool that makes concealment impractical.
What expenses can you claim, and when does a flat allowance pay off?
Both countries let you choose between a flat allowance and actual expenses, but the figures differ. In Slovakia, business income under § 6(1) carries a 60 % flat allowance capped at EUR 20,000 per year; in Czechia, a § 7 accommodation service carries 60 % with a trade licence, 40 % without. In both, the alternative is keeping records and claiming actual costs — platform commission, utilities, cleaning, furnishings, repairs and property depreciation.
The flat allowance is simplest and usually pays off when real costs fall below the allowance percentage; actual expenses win when you invest heavily — a renovation, full furnishing or high commissions. Example: on EUR 25,000 of income the Slovak 60 % allowance gives EUR 15,000 of expenses, so only costs above that make the records worthwhile. In Slovakia’s passive § 6(3) regime no flat allowance is available — only actual expenses.
What local and record-keeping duties come with hosting?
Beyond income tax and VAT, both countries levy a local accommodation or stay charge that the host collects from guests and remits to the municipality, at rates that vary locally. Running accommodation as a business also brings record-keeping duties — a guest register and, for guests from third countries, notification duties towards the immigration police.
Keep your monthly platform settlement reports, commission documents and property-expense records in order; these prove both the income and the deductibility of expenses in an audit. Because the boundary between rental and accommodation service is sensitive in both jurisdictions, it is worth settling the classification before volumes grow.
Letting through Airbnb or Booking in Slovakia or Czechia and unsure whether you are already running a business and how to tax it? We will go through your income, assess the correct regime and set up tax, insurance and VAT so they match.
FAQ
Is Airbnb income taxed as rental or as business?
In both Slovakia and Czechia a typical Airbnb counts as a business accommodation service, not passive rental. Slovakia treats it under § 6(1) of Act No. 595/2003 Coll. (trade licence required), Czechia under § 7 of Act No. 586/1992 Coll. Passive rental — § 6(3) in Slovakia, § 9 in Czechia — is reserved for genuine longer-term letting without hotel-type services.
What VAT rate and threshold apply to Airbnb hosting?
Slovakia applies the 23 % standard rate to accommodation, with registration above EUR 50,000 turnover per calendar year (immediately above EUR 62,500). Czechia applies the reduced 12 % rate, with registration above CZK 2,000,000 (immediately above CZK 2,536,500). In both, the platform commission received from abroad can create a VAT obligation even below these thresholds.
What do platforms report under DAC7?
Airbnb, Booking and similar platforms report each host’s identity and income to the tax authority by 31 January of the following year — under Act No. 442/2012 Coll. in Slovakia and Act No. 164/2013 Coll. in Czechia. The authority compares this with your return, so undeclared income risks back-assessment, interest and penalties.