Airbnb claims that it "acted within the law".

Italy's financial police have seized €779.5 million from the online short-term rental platform Airbnb for alleged tax evasion, the prosecutors' office in Milan announced on Monday evening.

Prosecutors allege that the online accommodation giant did not pay the Italian state the required 21 per cent tax on Airbnb hosts' rental income in Italy between 2017 and 2021, as required by Italian law.

The seizure order relates to Airbnb's European headquarters in Dublin and three people who held managerial roles within the company during the period in question.

Milan prosecutors claim that Airbnb's failure to comply with Italian regulations by allegedly not paying the so-called cedolare secca tax on short-term rentals had been "a deliberate corporate choice for years", reports state broadcaster RAI.

Airbnb Ireland said in a statement that it has been in "active discussions" with Italy's tax authorities since June 2023 to resolve the issue, saying it was "surprised and disappointed" by the decision, Reuters reports.