New short-term rental rules

The government is about to initiate changes in the legal framework and possibly taxation for some 145,000 residences in Greece.

The increase in short-term rentals, with the revenues of the state almost tenfold over a period of four years and currently amounting to 530 million euros, is leading the government to make further interventions aimed at the smooth operation of the sector and at avoiding even greater problems for those seeking property for long-term lease.

Sources say the interventions are to start from scratch, with the government putting forward the separation of individuals from companies, to separate asset managers from owners who have one or two properties.

At the same time, the government wants to establish a maximum number of days during which a property can be made available annually for short-term rental (in cooperation with local authorities). In this case, the institutional framework exists, but no relevant ministerial decision has ever been issued that sets time limits and restrictions on the number of homes that each owner can make available for short-term rental.

As far as real estate managers and large companies that own apartment buildings are concerned, they should be converted into legal entities and receive a special operating badge. For these cases, the government is considering imposing a residence fee and VAT, as currently applies to hotels.

Today, owners who rent out properties through Airbnb-type platforms are exempt from VAT, but from 2025, a pan-European VAT will be imposed on short-term rentals.

It is noted that the VAT on the tourism package is set at 6% (the reduced rate decided during the pandemic is maintained), while the accommodation fee for hotels and tourist accommodation amounts to 0.50 to 4 euros depending on the type of establishment.

Finally, a fee will be established which will finance structures for the accommodation of civil servants where they cannot find housing with affordable rent.