related to vacation rentals in Greece
The general line is that there is no limit on overnight stays, and the current tax is the same as for urban monthly property rental Law 4446 of 2016, which refers to short-term leases, and is separate from Law 4179 of 2013, which specifically refers to mansions and is in force at the same time, and determines the definition of the mansion, sets the maximum booking allowance limit in nights (3 months-92 nights, although it is informal, you will not be checked for this) and there is an obligation to issue a special operation permit; the Law specifically states what is needed for issuing the permit. In short, if you have a mansion, you definitely need an EOT permit (EOT = The Greek Board of Tourism), and the maximum in nights without the obligation to starting a Business is 92 nights-if you are very formal and stick to the letter of the Law. However, what will be of interest to the tax office will not be if you brought more nights, but if you declared them, and if you have an operation permit from the Greek Board of Tourism. You will register on the relevant Greek Tax Platform (known as ‘AADE’) no matter whether you are starting a Business or stay and rent as a private person. What changes when registering to the AADE platform is that if you are renting as a private person, the platform issues automatically a registration number for you, known as ‘A.M.A’-you need to show this everywhere (on rental platform listings etc.). If you rent as a Business you use the license number taken from the Greek Board of Tourism license and enter this in the AADE Tax platform (EOT). If you want more details, there is the amazing article by Mr. Batakis, Accountant-Tax Officer, which explains in simple words the rental of the house through Airbnb type platforms, which we quote.
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 lease of up to 2 properties per VAT number as well as the income limit of 12,000€ even if we have exceeded 90 or 60 days of lease 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 and it is now possible to undertake the process of listing the property on digital platforms for the purpose of 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 legal claims can be raised by tenants in the event of possible damage during for their stay).
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:
a. The short-term lease of more than two (2) properties per VAT number should not be allowed for each beneficiary of income.
b. 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 duration of the previous paragraph is allowed, provided that the total income of the landlord or sublease, from all the properties available for rent or sublease, does not exceed twelve thousand (12,000) euros during the relevant tax year.
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.
The above applies to the income obtained from the tax year starting from 1.1.2017 onwards.
The income obtained from the short-term lease of real estate of the sharing economy is exempt from VAT.
Pursuant to Articles 57-61 of Law 4446/2016, which concern 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 acquisition of 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 VAT number of the employee-employees. Detailed instructions are provided in Law 1009/19.1.2017.
The entry into force and operation of the Short-Term Residence Register as well as any other necessary details of implementation will be determined by a decision of the Commander of A.A.D.E.