Airbnb: changes coming to short-term rentals

In his speech at the 24th Prodexpo, Deputy Minister of National Economy and Finance Haris Theoharis mentioned changes in the short term to the tax bill that the government intends to put to a vote in the near future.

As Mr. Theoharis emphasized, “the definition of short-term rentals is being rationalized as The limit is set at 60 days. Also becomes mandatory registration of starting a business activity for individuals who have three or more properties for rent“

At the same time, he clarified that for individuals with up to two properties for short-term rental, The old regime is spreading.

Mr. Theoharis characterized the restrictions as softbecause, as he noted, The government’s goal is to balance the real estate market, fight unfair competition in the tourism sector, and also cope with the housing crisis.

“We don’t want to close the short-term rental market because the economy benefits from it, but to balance the market,” Mr Theoharis said.

From the beginning of January, the government is introducing VAT on short-term rental income for those who manage 3 or more properties.

According to new data in Greece, from January 2024, income from short-term rentals of three or more properties will be subject to VAT at a rate of 13% and levies that apply to hotels and rooms for rent.

Payment of VAT obliges property owners who receive income from short-term rentals of at least 3 properties to open books of accounts with the tax office, proceed with the formation of a company, hire an accountant to file a VAT return, register income-expenses in myDATA, pay VAT and other fees , which are currently paid by hotels and for room rentals, such as room charges.

It is noted that VAT on a tourist package is currently 6%, and fees for hotel accommodation and tourist accommodation range from 0.50 to 4 euros, depending on the type of establishment.

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