Draft law foresees three short-term rental categories
The government, local authorities and tourism businesses are trying to strike a balance between regulating the largely unregulated short-term rental market and maintaining tourism’s growth momentum.
Short-term rentals are now an integral part of the local tourism product. A recent Grant Thornton study showed that the turnover they generate amounts to 14.41% of the economic activity of Greek tourism. At such a size, the negative effects on destinations’ character, on hyper-tourism, on local communities and on the housing needs of residents, students, workers and civil servants are now evident.
Short-term rental interests are separated into three categories: Small-scale owners renting out their main residence or other property elsewhere; owners with three or more apartments that serve as their main source of income; and large-scale landlords (individuals or companies) who acquire entire properties, refurbish them and operate them as hotels, using the mantle of short-term leases to avoid regulatory, tax and other obligations.
This distinction will be reflected in the new law being prepared. On Monday, the prime minister will lead a teleconference with the competent ministries to clarify specific issues and move the process forward.
