Airbnb: New Procedure for Issuing Permits for Short-Term Rentals

Government of Greece seeks solutions to radically overcome the severe housing crisiswhich affects thousands of families. The situation is getting worse every day, as tens of thousands of residents of the country are unable to rent housing.

The main objective of the measures is ease the pressure on households that rent propertyespecially in urban centers and tourist areas of the country. It is reported that changes that will come into force in 2025, will include a number of measures that will be put to a vote in parliament in the autumn. The main points of the rules will be as follows:

• Decision of the meeting of owners: The owners of apartment buildings will decide by a majority vote at a general meeting whether to allow short-term rental of apartments in the building.
• Incentives for long-term rentals: Owners who leave platforms like Airbnb and return to long-term rentals will be exempt from tax on the rent they receive for a period of 3 or 5 years.
• Increase in tax liabilities for those who own multiple properties and rent them out for short-term rentals: those who own three or more properties for short-term rentals will be taxed as sole proprietors, with all the ensuing obligations such as presumption, business tax and advance tax.
• Platform restrictions: There will be a limit on the number of properties each city can offer on platforms like Airbnb.
• Rental days limit: A limit will be imposed on the number of days of short-term rental property per year, depending on the population of each city.
• Mandatory long-term lease for “golden visa”: Golden Visa applicants will be required to provide their property exclusively for long-term rental.

The government believes that The proposed measures will help stop the rise in rents and free up a significant amount of housing, which is currently located for short-term rent.

The problem is acute not only in large urban centres such as Athens, where finding accommodation has become difficult, but also in provincial towns and islands, where relocating students and civil servants often face difficulties finding available apartments. The new rules are being drafted by National Economy Minister Kostis Hatzidakis, Citizen Protection Minister Takis Theodorikakos and Tourism Minister Olga Kefalogianni.

The proposal will be submitted to the prime minister in early September, sources said, and Kyriakos Mitsotakis is expected to mention the upcoming changes during his speech at the Thessaloniki International Fair (TIF). Kostis Hatzidakis already gave preliminary information about these measures in May. Olga Kefalogianni recently confirmed the government's upcoming measures, pointing to the contribution of short-term rentals to rising rents, especially in tourist and urban areas.

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