The Deputy Minister of National Economy and Finance Haris Theocharis announced that the government will soon vote on a bill that will change the way that short-term rentals operate in Greece.
During his intervention at the 24th Prodexpo conference on the real estate market, Theocharis said the changes aim to rationalize and balance the tax burden in the real estate market. Specifically, a short-term lease will be considered 60 days and it will be mandatory for persons with three or more properties for lease to start a business. Also, they will be subject to VAT, visitors tax and a climate resilience tax. Those with two properties for short-term lease will be covered by the previous framework.
Theocharis says that the proposals are intentionally mild as they are designed to address an imbalance in the property market, unfair competition and the housing crisis, but “we do not want to close the short-term market as the economy benefits from it.”
Under the new rules, income from short-term rentals for three or more properties will be subject to 13% VAT as well as to the fees that apply to hotels and rooms for let, as of January 2024.
The above taxation framework for persons with 3 or more properties for short-term lease necessitates that owners incorporate a company, hire an accountant to file VAT returns, register income and expenses in myDATA, and pay all relevant VAT and fees.
VAT related to package tourism currently stands at 6pct, while hotels and rooms to let taxes range from approximately 0.50 to 4 euros per night, dependent upon the type of accommodation.