Restrictions on short-term leases
Government moving to provide order to the rapidly growing market for Airbnb rentals
The government is moving toward a clear distinction between small owners who rent their property for a few days a year to foreign or Greek visitors and owners or companies who rent a larger number of properties systematically under the short-term rental scheme.
In order to be able to continue this activity, the latter will be subject to the provisions on commercial activity – i.e. the rentals will be subject to VAT, among other things.
The supply of services such as cleaning is being explored, provided the services offered are in conformity with labor legislation and people employed in these establishments are registered and insured the same as all employees. This is especially important in the case of entire blocks of apartments and buildings whose rooms are offered as short-term rentals and are supervised by vested interests, constituting a hotel activity.
Furthermore, it is being examined whether it should be explicitly stated for apartment blocks that if the entire unit or apartment complex is rented out on short-term leases, it will be considered tourist accommodation and will need to be licensed appropriately.
The VAT exemption on collected rent will be reserved only if the income beneficiary is an individual and has registered up to a certain number of properties in his/her VAT number on the Independent Public Revenue Authority (AADE) platform. It has not yet been determined whether it will be two or three properties, of which one must be used for owner-occupation.
The goal is to provide order to a rapidly growing sector that frequently works in the gray area between hotel and rental property, as well as to ensure each case receives fair tax and regulatory treatment. It also aims to preserve the character of urban core neighborhoods and tourist areas, as well as ensure that properties are available for regular rental for residents, students, police, firefighters, teachers, nurses and seasonal workers.
The Finance Ministry is still drafting the required bill in collaboration with the Tourism Ministry and the government before the final decisions will be made.
Another proposal on the table is to impose time limits on the length of the year that short-term rental of a property will be permitted, as well as the number of properties in a neighborhood, though it has not yet been determined whether the local government will be given the authority to do so.
