The bad news for Airbnb landlords who hoped to remain under the taxman’s radar is that Israeli officials are negotiating with the company to deduct the tax at source. Negotiations with Airbnb, which are being conducted with the Tourism Ministry, are still in the early stages.
The proposed 15%-20% rate will only apply to those whose income doesn’t exceed 25,000 shekels ($7,260) a year and whose shared-economy business isn’t the person’s sole source of income.
If the taxpayer’s income exceeds 25,000 shekels or is a full-time business, he or she will be taxed at the same rate as other self-employed income earners. On the plus side, the taxpayer can deduct expenses.