1/14/2025
Starting January 1, no new Airbnb licenses will be issued in several neighborhoods in central Athens.
In an effort to tackle Greece’s housing shortage and increase property tax revenues, the government has introduced a revised framework for Airbnb rentals. The Independent Authority for Public Revenue (AADE) has published a guide detailing the updated rules for property owners.
The AADE guide specifies that rentals are classified as short-term if their duration does not exceed 59 days. These rentals must offer only basic amenities, such as linens, and the property must be furnished. The 59-day limit applies to the length of individual leases, not the total rental days within a calendar year.
Property owners are required to register their rental properties in the Short-Term Stay Property Registry, acquire a Property Registry Number (PRN), and submit a Short-Term Stay Declaration for each rental agreement.
Eligible properties for short-term rental include apartments, standalone houses, individual residential units, and rooms within these properties. Even if rooms within a property are rented out separately, each rental unit must have its own PRN.
For rentals exceeding 59 days, they are considered long-term leases and are subject to different tax obligations.
If additional services such as breakfast, cleaning, or transportation are provided, the property is reclassified as a tourist accommodation. This reclassification entails a separate tax and administrative framework, requiring the property owner to register a business activity with AADE.
A single property can be used for both short-term and long-term rentals. When a lease exceeds 59 days, a Long-Term Lease Declaration must be submitted. For leases of 59 days or fewer, a Short-Term Stay Declaration is required.
For taxation, income from up to two properties rented short-term without extra services is categorized as property income. However, renting out three or more properties or offering additional services reclassifies the income as business income, which mandates VAT registration at a 13% rate.
The guide also clarifies how the number of PRNs determines the count of properties a person rents. For instance, if a single property is partially rented, such as two individual rooms within one unit, it is counted as two separate properties. This clarification aims to help property owners better understand and comply with the new tax and administrative rules for short-term rentals.
Source:https://www.tovima.com/finance/new-rules-and-taxes-for-greeces-airbnb-owners/