Short-term rentals spark GDP boost in Brazil. And tax disputes

When traveling to San Francisco in 2013, historian Ana Paula Gaspar had her first contact with short-term rental app Airbnb, as a guest. Keen on discovering new adventures and meeting people, she decided to become a host herself in 2014, upon returning to Brazil. Five years and three properties later, short-term rentals have become not only a cultural experience for Ms. Gaspar, but also an alternative source of income that pays her own rent.

Ms. Gaspar’s case is an example of how the phenomenon of short-term rentals has gone from a novelty to an important market in Brazil. During the country’s worst economic recession on record, Brazilians have figured out ways to earn extra cash amid rampant unemployment. A 2018 report from Época magazine shows data from Airbnb, showing that 53 percent of Brazilian hosts use the platform as a supplementary source of income, while 44 percent are reliant on this money to pay their bills.

Operating in Brazil since 2012, Airbnb has 220,000 listings in the country. The average annual revenue for a host is BRL 6,570, according to the tech company. And the number of guests using the platform continues to grow.

Short-term rentals have become not only a novel source of income in a still-sluggish economy, but also a way to save money while traveling. Data from the Ministry of Tourism show that foreign tourists spend less money per capita