“Airbnb will share information about Danish homeowners' revenues with tax authorities as of July 1st, 2019. As of 2021, the reporting will be done automatically,” Denmark's taxation ministry said in a statement.

Income taxes are deducted at the source in Denmark. The information shared with Airbnb will concern only tax details and no other information about the users' profile.

A tax ministry spokesman told AFP this was the first deal reached between Airbnb and a country's tax authorities.

According to VisitDenmark, a million people stayed in an Airbnb residence in Denmark in 2018. Some 39,000 homes were listed on the site last year.

“The new rules … will ensure that ordinary Danes can continue to benefit from tourism to Denmark … and that the government can get its share of the economic boost provided by tourism,” Airbnb's head of northern European operations, Hadi Moussa, said in the statement.

Airbnb, accused of aggravating housing crises by driving up rents and pushing out tenants and criticised by the hotel industry, currently faces legal battles in several countries.

In France, Airbnb risks a 12.5 million euro fine for listing 1,000 homes on its site that have not been officially registered with the city of Paris.

Paris, Berlin, Amsterdam, Barcelona, Tel Aviv and Dublin have all either announced or adopted measures to regulate temporary rentals through Airbnb.

READ ALSO: In world first, Airbnb to report income directly to Danish authorities