Airbnb Greece Rules (Greece short-term rentals laws)

(Legal tax matters for short-term rentals in Greece)

There have been many changes to the vacation rentals law in Greece over the years. The latest change will come into effect in January 2025. There have also been changes in 2024, 2016 and 2013. It seems that politicians love to change it, but this is not true. The reason for the frequent changes is that short-term rentals are popular and they bring revenue to the tax payers and the country. There are also conflicts of interest, affecting hoteliers and those who rent their properties long-term. The government is trying to strike a balance and make sure that the money keeps flowing. As for the property owners things are more complicated now as their obligations in order to be legitimate are different and depend on their type of property, number of properties and many other factors. So it is impossible with one statement to cover everyone, and copying the exact law here will only make things worse.

For this reason we decided to provide a consultation service. If you wish to know what your correct obligations are, you can contact us using the form below and we will setup a meeting at the time of your choice to address your questions regarding short term rentals and the legal obligations that you may have before and during renting.

Our work is contract-based; we use a globally trusted online Projects service, to run and manage projects like this. Charge is per work hour (depends on the size and complexity), and your payment is on escrow until we finish work. The total number of hours depends on the size of work to be carried out.

To get an idea of how complicated things are, have a look at an older article that explains the short-term rental law back in 2016. It is an excellent article written back then by Mr. Batakis, Accountant-Tax Technician, who made an excellent job in over-simplifying things.

You can contact us by filling out the contact form below:

"Airbnb Home Rent"

Introduction

Prior to the implementation of Article 111 of Law 4446/2016, which first set out the terms and conditions for short-term leases of property through digital sharing platforms (Airbnb or others), it was voted by the Greek Parliament in May 2017 Law 4472/20107, which makes significant changes to this article.

The most important concerns the determination – in addition to a joint ministerial decision of the Ministers of Economy and Development, Finance and Tourism – of the geographical areas where the restrictions in force and concerning the lease limit of 90 or 60 days (for islands up to 10,000 inhabitants) will apply. Short-term leases of up to 2 properties per VAT number and the income limit of 12,000€ even if we have exceeded the lease’s 90 or 60 days during the relevant tax year. Until the issuance of the above joint ministerial decision, none of the above restrictions exist.

Also, the concept of real estate manager is defined. It is now possible to list the property on digital platforms for the purpose of a short-term lease, not only private but also for any other legal entities.

Finally, the conditions that were valid for the inclusion in the Register of Short-Term Residence and had to do with the minimum area (9 sq.m.) of the property as well as the obligation of legality of the building (s.s. Attention: the elimination of the latter condition on the legality of the building may no longer create an obstacle to registration, but it should be of concern to property managers because tenants can raise legal claims in the event of possible damage during their stay).

Important Definitions

Short-term lease is defined as the lease of real estate concluded through digital platforms for a specific period of time, specifically less than a year.

A short-term rental property manager is a natural or legal person or any legal entity that undertakes the process of listing real estate on digital platforms for the purpose of short-term lease and generally takes care of the short-term lease of the property. A property manager may be either the owner of the property or a prefect or a usufructuary or a lessor or a third party.

Conditions

The property manager has been registered in the “Register of Short-Term Residence Properties” kept by the Independent Public Revenue Authority (AADE).
The registration number in the Short-Term Residence Property Register must accompany the listing of the property, in a visible place, on the digital platforms, as well as in each media.

The registration in the Register of Short-Term Residence Properties is made per leased property.

By joint decision of the Ministers of Economy and Development, Finance and Tourism, for reasons related to the protection of housing, geographical areas may be determined, where restrictions on the disposal of real estate for short-term lease will apply as follows:

The short-term lease of more than two (2) properties per VAT number should not be allowed for each income beneficiary.
The lease of each property should not exceed ninety (90) days per calendar year and for islands with less than ten thousand (10,000) inhabitants per sixty (60) days per calendar year. Exceeding the previous paragraph’s duration is allowed, provided that the landlord’s total income or sublease from all the properties available for rent or if the sublease does not exceed twelve thousand (12,000) euros during the relevant tax year.

Penalties and fines

In case of non-compliance with the above conditions, an independent administrative fine of five thousand (5,000) euros is imposed on the real estate managers.

The fine is public revenue, is imposed and collected in accordance with the provisions of KEDE from AADE.

From the finding of the infringement, the manager of a short-term lease property is obliged to take the necessary compliance actions within fifteen (15) calendar days.

In case of non-compliance with the above conditions, within one year from the issuance of the act of imposition of the fine, this fine is imposed at double and in the case of each same subsequent violation, at four times the amount initially imposed.

In case of non-submission or submission of an inaccurate Short-Term Declaration, the property manager shall be fined twice the rent as shown on the digital platform on the day of the audit.

In the case of an overdue Declaration of Short-Term Residence, an independent administrative fine of one hundred (100) euros is imposed.

In case of non-response of the digital platform to the request of AADE, regarding the provision of any information necessary for identifying the property managers and the properties that are posted on them, fines of 250 or 500 euros are imposed. Depending on whether there is an obligation to comply with simplified or complete accounting standards.

For the application of the provisions concerning the short-term lease, checks may be carried out by mixed control teams consisting of employees of A.A.D.E. and the Ministry of Tourism. In addition, the assistance of the Financial Police may be requested.

Liabilities per case

The property owner or the perfect or the usufructuary or the lessor, if he entrusts the management of his property to a third party for a short-term lease, has an obligation to submit a Real Estate Lease Information Statement to which he will enter his details.
In case of non-submission, the same property manager is considered.

In the case of co-ownership of a property, when the manager of the property is one of the co-owners, the other co-owners are not obliged to submit a Statement of Real Estate Lease Information.
The owner of the property or the nominee or the usufructuary or the lessor, if he rents a property with the right of sublease, still has an obligation to submit the Statement of Real Estate Lease Information.
In cases where the real estate managers have a Special Operating Signal (EOT), they are not obliged to register in the Register of Short-Term Residence Properties. Still, they are obliged to indicate, in a visible place, the number of the Special Operating Signal (EOT license number) when posting the property on digital platforms, as well as in any media.
The property manager who does not have a Special Operation Signal (EOT) is obliged to submit a Declaration of Short-Term Residence in an electronic application that will be created by AADE and does not submit Statements of Real Estate Lease Information.
The owners of real estate, who bear the characteristics and specifications of the tourist furnished villas, and who may rent it outright and not in parts, to natural persons for some time, without the right to further pretend, are also subject to the same obligation to submit a Short-Term Declaration. One week and not more than three (3) months in total per year, prohibited from its successive lease beyond the quarter of the same year.

Income tax

Income earned by natural persons from the short-term lease of real estate of the sharing economy is considered income from real estate, provided that the property is rented furnished without the provision of any service other than the provision of bed linen. In case any other services are provided, this income is income from business activity.
The income obtained from legal entities or legal entities from the short-term lease of real estate of the sharing economy, as defined in the previous paragraph, is considered income from real estate.

The above applies to the income obtained from the tax year starting from 1.1.2017 onwards.

VAT

The income obtained from the short-term lease of real estate of the sharing economy is exempt from VAT.

Possibility of voluntary disclosure of taxable material of previous years

According to Articles 57-61 of Law 4446/2016, which concerns the “Voluntary Disclosure of Taxpayers’ Materials of the Past Years,” it is possible to declare the income derived from short-term leases (from Airbnb-type platforms of years, etc., reduced). Additional taxes and other charges, with an initial or amending statement of income tax on a case-by-case basis, in the year of acquiring the right to collect this income. It is also possible to submit with the same provisions, declarations of real estate lease information either by lease or collectively annually regardless of the existence or not of the employee-employees’ VAT number. Detailed instructions are provided in Law 1009/19.1.2017.

Entry into force

The entry into force and operation of the Short-Term Residence Register and any other necessary details of implementation will be determined by a decision of the Commander of AADE.