The Greek legislation regulates short-term rentals of real estate property within the so-called framework of “sharing economy” (through digital platforms like Airbnb) in the article 111 of Law 4446/2016, as amended and in force.
Important definitions
A sharing economy is considered to be any model where digital platforms create an open market for the temporary use of goods or services that are often provided by individuals.
Digital platforms are electronic, bilateral or multilateral markets where two or more user groups communicate via internet with the mediation of a platform manager facilitating a transaction between them.
Types and terms
Subject to the provisions of the above mentioned law are apartments, houses, any other form of building with structural and functional autonomy, as well as rooms in apartments or houses.
As far as the duration is concerned, a short-term lease of property may be concluded for a specific period not exceeding one year.
Obligations of the property manager
A short-term lessor (hereinafter “property manager”) is an individual or a legal person or any legal entity that undertakes the process of posting immovable property on digital platforms for the purpose of short-term letting and generally arranges for the short-term lease of the property. A property manager may be either the owner of the property or the possessor or a sub-tenant or even a third party.
Short-term rental of real estate property through digital platforms can be provided under the following conditions:
- The property manager has been registered in the “Short Term Residence Real Estate Registry” maintained by the Independent Public Revenue Authority (AADE).
- The registration number from the Short Term Residence Real Estate Register must be visibly present when the property is posted on the digital platforms, as well as on any promotional tool.
- In case the property managers have an Authorized License from the Hellenic Organization of Tourism, they are not obliged to register with the Short-Term Residence Real Estate Register, but they have the obligation to visibly post the Authorised License Number on digital platforms’ posting, as well as on any promotional tool.
A registration with the “Short-Term Residence Real Estate Register” is to be made for each leased property.
Taxation of income from short-term lease in Greece
The income generated from short term lease of real estate property in the context of sharing economy under the conditions that the real estate property is furnished, without the provision of any other service (except for bedding) is taxed as following:
| Income from property (EUR) | Taxation Rate |
| 0-12,000 | 15% |
| 12,001-35,000 | 35% |
| 35,001- | 45% |
In case of any other services (apart from the furnished lodging and bedding) the relevant income is considered as income from business activity and is taxed accordingly.
VAT: The income from the short term lease of property is exempted from VAT, provided that the property is leased furnished and no service other than bedding is provided.
Additional requirements
The owner or the possessor or sub-tenant of a property, when assigning to a third party the property management rights for short-term lease purposes, has the obligation to submit a Real Estate Lease Data Information Declaration (via “TAXISnet”) which will include the details of the property manager. In the event of failure to submit such Declaration, the owner/possessor/sub-tenant will be deemed to be the manager of the property itself.
In case of co-ownership of property, when the property manager is one of the co-owners, the other co-owners are not obliged to submit a Real Estate Lease Data Information Declaration.
The owner of the property or the possessor or sub-tenant is also required to submit the Real Estate Lease Data Information Declaration when leasing a sublet property.
| Infringement | Fine |
| Non-compliance with certain obligations | EUR 5,000 (in certain cases may be doubled or even quadrupled) |
| Outdated “Short Term Residence Declaration” | EUR 100 |
| Failure to submit or submission of an inaccurate “Short Term Residence Statement” | A fine in amount of double the rent as shown on the digital platform shall be imposed on the property manager on the day the audit is executed |
For the application of the Law, AADE may conduct audits with the support of the Ministry of Tourism and Financial Police. AADE may ask from every digital platform being active in the sharing economy any information related to the property managers as well as to properties posted on them.
The Tax and Legal Department of Eurofast Global Ltd in Athens remains at your disposal for any further question and/or clarification as well as special advice.
The present article contains general information and in no way covers exhaustively its subject matter. Interested clients should seek specific professional advice.
Your contact for further queries is:
Maria Sarantopoulou, Tax & Legal Counsel
Direct tel: +30 210 8257720
Email: maria.sarantopoulou@eurofast.eu
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