Greece: “explosion” of short-term rental income

Tax revenue from short-term rental properties like Airbnb shows explosive growth. Since 2017 they have increased more than 10 times.

Tax revenue

The head of the Greek Tax Revenue Authority (ΑΑΔΕ), Georgios Pitsilis, said that in 2017 tax revenues amounted to about 70 million euros, while last year they reached 740 million euros. This year, revenues amounted to 742 million euros in the first nine months, up from 640 million euros for the same period in 2023. The amount is expected to reach 830 million euros by the end of the year.

The increase in tax revenue is due to an increase in the number of properties offered for short-term rentals, as well as active audits and cross-checks carried out by ΑΑΔΕ in collaboration with the Airbnb, Booking.com and VRBO platforms, which reveal hidden income.

Georgios Pitsilis, speaking at the Prodexpo conference, noted that the level of compliance with the new tax rules for short-term rentals among taxpayers is quite high. A total of 6,200 legal entities have registered more than three objects, and 90% of them maintain records. However, checks showed that about 500 of them indicated incorrect codes for their properties, and another 500 did not take any action. “We have identified them and will be contacting them as soon as possible to ensure compliance,” he added, noting that only 12% of listings on short-term rental platforms are now problematic.

40,000 new registrations in the last four years

Economic Adviser to the Prime Minister Alexis Patelis said there are 100,000 properties registered on the Short-Term Rentals Register, each with a unique registration number (ΑΜΑ). Over the past four years, 40,000 new properties have been added, and the average income per Airbnb property is €7,350.

Of the 100,000 properties with ΑΜΑ, only a quarter are rented for more than 90 days a year. “That’s why we decided not to introduce time restrictions,” said Alexis Patelis, adding that 80,000 properties are owned by individuals, of which 4 out of 5 are rented for less than 90 days. In turn, 20,000 properties belong to legal entities, and at least half of them are rented out for more than 90 days, which has led to stricter rules for legal entities.

Regarding the ban on new short-term rentals in the first three districts of Athens for one year, the prime minister's economic adviser left open the possibility of extending the measure. “In these areas, short-term rentals are above 5%. The measure will come into force from the beginning of 2025, and at the end of the year we will assess its effectiveness and the need for extension,” he said.

Empty properties

The register of ownership and management of real estate, which is created by ΑΑΔΕ in cooperation with the cadastre, will make it possible to identify the exact number of empty properties. According to Georgios Pitsilis, the register will be ready in 2025. Regarding the three-year tax exemption for vacant properties that will be returned to the market, Chairman TOMATO Stratos Paradias noted that this will lead to an increase in the number of affordable homes if the law is passed correctly.

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