Time is running out for owners and managers of short-term rental properties like Airbnb, as they have until Saturday, February 28 to check and finalize their property and income data in the Tax Authority Registry for 2025, which will form the basis for this year’s tax bill. If they discover errors or omissions, they must make corrections and modifications to avoid additional taxes and hefty fines.
Taxpayers can correct erroneous entries and modify critical information without penalty, such as rental days, other beneficiaries, percentages, etc. In cases with multiple beneficiaries, they must allocate income based on corresponding percentages. Otherwise, they risk being taxed on 100% of the income declared in the original statements, even if they are not the final beneficiary of all proceeds.
What applies to income taxation from short-term rentals like Airbnb – Wave of cross-checks by the Tax Authority
It should be noted that under the current system, income from short-term rentals is taxed from the first euro with rates ranging from 15% to 45% depending on income level, while the minimum rental amounts that must be declared to the tax office in 2026 will be calculated based on the presumed income of freelance professionals with rates of 9%-44%.
Meanwhile, the Tax Authority is planning a wave of data cross-checks to detect hidden income from short-term rentals based on data from international platforms Airbnb, Booking and VRBO, which includes names, addresses, tax numbers, property addresses, rental days, income received, commissions, fees and taxes.
What are the penalties
If inspections reveal that properties have not been declared in the “Short-Term Accommodation Property Registry” or were posted on digital platforms without visible display of the Property Registry Number (Α.Μ.Α.) for Short-Term Accommodation or the Special Operating Mark (Ε.Σ.Λ.) or the Unique Notification Number (Μ.Α.Γ.), depending on the type of violation, the following penalties will be imposed:
– For non-registration in the Short-Term Accommodation Property Registry, an independent penalty per year equal to 50% of gross income for the tax year when the violation occurs, which cannot be less than €5,000. In case of repeat offense within one year from the issuance of the penalty notice, the penalty increases to double the originally imposed amount.
– For non-submission or submission of inaccurate Short-Term Accommodation Declaration, the penalty equals double the rent as displayed on the digital platform, and in case of late Short-Term Accommodation Declaration, an independent administrative penalty of €100 is imposed.
Penalties are imposed on the “Manager” and if it is not evident that the “Manager” is a sublessee or third party, the penalty is imposed on the owner or usufructuary of the property.
