The authorities promise big changes in the short-term rental market

The Greek government is preparing a bill to regulate the activities of entrepreneurs operating in the short-term rental market. At the same time, a different regime is planned for small owners and companies or owners who systematically rent out several properties.

To professionals of Airbnb and other similar platforms business regulations will apply, i.e. they will be subject to value added tax, including on rented premises.

The government is moving forward towards a clear division between, on the one hand, small owners who rent out their properties for a few days a year to foreign or Greek visitors, and, on the other hand, those owners or companies who systematically rent out more properties for short periods.

https://rua.gr/news/bissecon/57351-airbnb-sedaet-hotelerov.html

For the second category of owners, in order for them to continue this activity, they will spread regulations on entrepreneurial activityi.e., among other things, for rent value added tax will apply.

In addition, the possibility of allowing the provision of services, for example, cleaning of premises, is being considered, provided that they are carried out in accordance with labor laws, and persons employed in such premises will be registered and insured just like all employees. This issue is especially relevant in relation to entire apartment buildings and buildings in which rooms are rented out for short periods and which are managed in their own interests, in fact, constitute a hotel business.

https://rua.gr/news/bissecon/57332-airbnb-shtrafy-arendodatelyam-do-500-tysyach-evro.html

It is also being considered for multi-family buildings to explicitly provide that if all apartments or a residential complex are rented out for short-term rental, then this will be considered tourist accommodation, which must be properly licensed.

VAT exemption of the received rent will only be retained if the income recipient is an individual and has registered a certain number of properties on the AADE platform with their VAT number (it has not yet been decided whether these will be two or three properties, of which one should be used for residence by the owner ). The issue of imposing temporary restrictions on the length of the period during which short-term rentals will be allowed is also being considered.

The purpose of the bill is to restore order in a rapidly growing market, which, however, often lies in the “gray zone” between hotel and rental properties, and ensure fair taxation and regulation in each case. In addition, the bill is designed to protect the character of city neighborhoods and tourist destinations, as well as to ensure that real estate is available for regular rental to residents, students and government employees such as police officers, firefighters, teachers, doctors, seasonal workers and others. The relevant bill is still being developed by the Ministry of Finance jointly with the Ministry of Tourism and Megaro Maximuwhere the final decisions will be made.

https://rua.gr/news/bissecon/54732-airbnb-pochemu-vladeltsy-imeyushchie-neskolko-obektov-nedvizhimosti-khotyat-ujti.html

Another proposal under consideration is the introduction of temporary restrictions on the length of the period during which short-term rentals of property are allowed, and also, possibly, on the number of properties in the area, although it has not yet been decided whether local authorities will be given the authority to determine this number or simply their housing needs for government and other employees and individuals. In any case, if this is eventually included in the bill, it will be done on the basis of evidence-based research.

The Ministry of Finance also collected proposals from the Hellenic Chamber of Hotels, the Association of Greek Tourism Enterprises and the Panhellenic Federation of Property Owners (POMIDA). These offers are also evaluated against the best international practices that have been implemented in the last few years in European countries and cities that have experienced a phenomenon of high growth in short-term rental offers, such as Spain, France, the Netherlands, Italy and others. The report also attempts to strike a balance between the side that talks about the ongoing unfair competition with hotels, and the one that talks about the right of owners to use their property after a decade of deep economic crisis.

https://rua.gr/news/bissecon/25590-airbnb-otkryvaetsya-platforma-dlya-vzimaniya-nalogov.html

The regulation of the short-term rental market was recognized as necessary by the previous government, but, in connection with the elections, no measures were taken. The maturation of the relevant procedure was announced in the statements of the Minister of Tourism Olga Kefaloyannis, who spoke of the urgent need to regulate this market, not only to ensure fair competition between hotels and owners who rent out a number of properties for short-term rentals, but also to solve social problems, such as the impossibility find affordable rental housing.

For its part, POMIDA, in a letter to the Prime Minister and the Ministers of Economy, Tourism and State, calls “the government will not resort to unilateral measures that will destroy our country’s dynamic economy and tourism sector, short-term rentals, with tax compliance rates of up to 90% and revenues of 600 million euros from related platforms”announced yesterday by Deputy Treasury Secretary Harris Theoharis, “causing huge damage to government revenues, which will require the introduction of additional taxes at the expense of citizens.”

Source link