The summary of the new Law is as follows:
You can rent a property (or up to 2 properties per unique VAT) and aim for rental revenue of up to 12,000€. Up to this amount the total number of nights booked cannot be more than 90 or 60 (90 nights for mainland Greece and the Greek Islands with population that exceeds 10,000 people. 60 nights for the Greek Islands with population less than 10,000 people). The limit is either the 12,000€ or the number of nights – whichever comes first. The only documentation needed is for the property to have an energy performance certificate (EPC) and register to the Greek Tax Office’s Database for vacation rentals (not ready yet), and obtain a registration number that will be visible in all publications, listings and advertising. Taxation for revenues for up to 12,000€ is 15%.
For properties that exceed 12,000€ in rental revenues, additional documentation is needed and must be issued: a Greek Board of Tourism Certificate with a unique registration Number (also known as MHTE). The total number of nights that can be booked cannot exceed “3 months”, i.e. 92 nights. Taxation for revenues above 12,000€ is as follows: 35% for any additional revenues between 12,001€-35,000€ and 45% for any additional revenues between 35,001€ and above. The unique registration number (MHTE) must be visible in all publications, listings and advertising.
For properties that exceed the limit of 92 nights in bookings, the owners are obliged to start a company.
The penalty for breaking the Law is 5,000€ and two weeks’ time to correct and make everything legal. Otherwise, the owner is fined with a second penalty of 10,000€, and a second opportunity to correct. If a third audit is carried out after two further weeks and the owner is still breaking the Law, the fine shoots to 20,000€.
The Greek Government will certainly modify the Law in the near future, possibly several times, seeking a balance in local markets and try to relieve pressure initially from hotels. Later, future governments will have to take further action in case the rental market shows signs of moving to a greater degree towards becoming ‘short stay’ oriented.