Airbnb again in the fall "they'll put pressure on you"

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Following the introduction of stricter conditions for obtaining a Golden Visa, the government plans to introduce new measures in the context of short-term rentals that will more effectively address the housing crisis.

The issue of short-term rentals will be raised again this fall when final decisions are made on the type and scale of changes. This was “let slip” by the Minister of National Economy and Finance, Kostis Hatzidakis, who, referring to the measures that were introduced last December by the latest tax law, noted: “We have reached some initial agreements and now, when we let the ink of the agreement dry, we will see in the summer how it works, and from September we will continue and discuss any interventions again.” Several short-term rental regime scenarios are under consideration. Planned:

1. Establish quantitative, spatial and temporal restrictions on short-term rentals per year. In accordance with what is already provided in paragraph 8 of Article 111 of Law 4446/2016: “By joint decision of the Ministers of National Economy and Finance, Development and Tourism Geographical areas where restrictions may be established for the availability of real estate for short-term rental. In particular, the following will apply:

• Do not allow short-term rentals of more than two properties per property AFM.
• The rental period for each property must not exceed 90 days per calendar year, and for islands with a population of less than 10,000 people – 60 days per calendar year. Exceeding the previous subsection is permitted if the total income of the lessor or sublessor from all rental properties does not exceed €12,000 during the relevant tax year.

2. Define maximum number of real estate objects, which will be rented out for short-term rent per municipality. At the same time, the competent authorities will declare/record data on the need for housing, the amount of rent, and the number of properties available for short-term rental.

The government first wants to see how this legislation will work before deciding on new measures for short-term rentals. It is noted that since the beginning of the year:

• Individuals who own three or more real estate units for short-term lease, oare required to start a business by creating an individual enterprise. They are now subject to the relevant insurance premiums and must pay 13% VAT on the gross short-term rental income they receive from all their operated properties.
• A “Climate Resilience Fee” (“Climate Resilience Fee”) is charged on all short-term rentals and ranges from 0.5 to 10 euros per day.
• The fine for failure to register in the real estate register for short-term rentals, which until 31.12.2023 was 5,000 euros and was collected from the property manager, regardless of whether he is the owner, beneficiary or third party, is now 50% of the gross income for the last tax year and at least 5,000 euros for each tax year.
• The rental period was limited to 60 days to qualify as a “short term” rental status.
• If available for short-term rentals, all apartments in an apartment building or residential complex will be considered tourist accommodation and must have the appropriate permit.

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