The minister's response made it clear that individuals making an earning from AirBnBs must declare this income on their tax returns. If it's considered a commercial activity, then it should be considered as commercial profit.
Several days ago, Gramegna provided a joint response to a parliamentary question alongside Minister of the Economy Etienne Schneider and Minister for Tourism Lex Delles. The question, submitted by Pirate Party MP Sven Clement, focused on how AirBnB contracts should be considered. The ministers wrote that 'if AirBnB contracts are not considered a classic lease (which lasts at least a year, then revenue should be considered as commercial activity.' Hosts must appropriately declare the revenue on their tax returns.
In another response, ministers Schneider and Gramegna explained that they were having consultations with the US management of the platform so that money collected by Luxembourg taxpayers on Airbnb would be reported to the relevant authorities.
Generally, the conclusion is that renting property out via AirBnB is not technically depicted as a commercial activity as stipulated in the Commerce Code. However, AirBnb activities are also not formally cited in the right of establishment.
