Taxes on short-term rentals
The National Economy and Finance Ministry will impose an accommodation fee on the 170,000 properties that are active in the short-term rental sector, as well as value-added tax (VAT) on those owner-managers who have three or more properties.
The ministry’s plan is expected to be submitted to Parliament soon.
In the event that an entire apartment building is utilized by short-term rentals, the owner should proceed to convert it into tourism accommodation. This means it will have to obtain a relevant license from the Ministry of Tourism, fulfilling the terms and conditions that currently apply to tourism accommodation.
As announced Tuesday by Deputy Finance Minister Haris Theocharis, “a combination of interventions is being established with the aim of dealing with unfair competition with hotels, but also with the secondary negative effects on the real estate market and rents. The development of short-term rentals, which are an important source of income for thousands of owners, is not affected.”
From the accommodation fee, the Greek state can potentially collect more than 38 million euros, as based on the latest figures overnight stays last month amounted to 25.5 million. The daily accommodation fee will amount to €1.50.
At the same time, VAT will be imposed on those property owners who rent three or more assets through the platforms. This means that they will have to proceed with starting a professional activity. In addition, they will pay a temporary-resident fee.
According to ministry data, 168,819 properties belonging to 107,719 individuals and corporations are listed in the Register of Short-Term Accommodation Properties of the Independent Authority for Public Revenue (AADE). They concern 27,367 properties belonging to 5,297 enterprises, and 141,452 properties belonging to 102,422 individuals. Of these, up to two properties are owned by 94,982 taxpayers (92.7% of natural persons), while 7,440 individuals own three or more properties, concerning 30,329 assets.
Consequently, 7,440 individuals and 5,297 enterprises will be required to pay VAT and a temporary-resident fee, unless they switch to long-term lease.
