Short-term rental discrepancy
Revenue from the short-term rental industry in Greece is estimated to have reached 2.4 billion euros in 2023, according to data from AirDNA, which monitors this market.
Based on the latest monthly report on the European market, Greece recorded 12.4 million overnight stays, 8.8% more than in 2022 and 27.5% more than in 2019. Given that supply has not grown significantly since then, it is evident that those in the industry are also collecting more revenue.
The supply of accommodation increased by 7% from 2022, while in some areas it still falls short of the 2019 supply.
The average price per night for the whole of 2023 was €193, almost unchanged from 2022. This is a clear sign that property owners and managers have reached the limit of how much they can charge, as Greece’s most popular destinations during the summer were also the most expensive in all of Europe.
The average price per night in August across the country was €224, but on islands such as Mykonos, Santorini, Crete, Rhodes and Corfu the prices were higher in many cases.
AirDNA specializes in short-term rental market research and sources its data from Airbnb and Vrbo.
At this point, some reasonable questions seem to arise regarding the data announced by the tax administration regarding declared income from short-term rentals. According to the most recent figures, this amounted to approximately €677 million and there was also a 36% increase in the number of declarations submitted, from €1.24 million to €1.69 million. It is estimated that by the end of 2023 the declared incomes will come to or even exceed €800 million.
Trying to explain the large discrepancy observed, in relation to the €2.4 billion resulting from AirDNA data, market executives point out that the above amount is gross. This does not take into account the deductions of digital platforms, which are about 20% and amount to almost €500 million (out of €2.4 billion).
They also add that the independent authority for public revenue only takes into account individual private owners. If someone owns more than one property and operates it through a company, this does not “show up” in these figures, as it is taxed with income tax as a business and not as an individual (with tax on rents).
