The new tax framework for short-term rentals like Airbnb is clarified by the Greek tax authority (AADE) with a comprehensive, updated guide that describes step-by-step the obligations of property owners and managers to avoid fines and penalties. The guide coincides with the government’s plans to extend the ban on new licenses to additional areas of the country, as part of measures to address the housing crisis. The ban is already in effect in central Athens and will soon expand to Thessaloniki, Santorini, Chania, Paros and Halkidiki.
Specifically:
– Short-term rental is defined as the rental or subletting of property for up to 59 days, provided the properties are rented furnished without providing any service other than bed linens (hereinafter referred to as Short-term Rental). The characterization of a rental as short-term or not is regardless of whether the rental is concluded through a digital platform or not. The 59-day limit refers to the duration of each rental and not to the total number of days that a property can be rented short-term within the year. Property rental with a duration of 60 days and above is now considered long-term and requires submission of a Declaration of Informational Elements for Real Estate Rental.
– Property rental with the provision of additional services beyond bed linens is considered tourist accommodation and requires starting a business activity with AADE.
– Properties located within the boundaries of the 1st, 2nd and 3rd Municipal Districts of the Municipality of Athens can be registered and receive a new registration number, provided they were registered in the Short-term Accommodation Property Registry until December 31, 2024.
What is provided for Airbnb-type rentals
The following cases are indicatively mentioned:
a) drafting of a new rental contract due to termination of the previous one with a new or the same tenant/subtenant,
b) change in the person of the manager, without change of ownership status,
c) change in the person of the manager due to property transfer (for onerous or gratuitous cause) or inheritance,
d) re-registration of the same property by the same manager due to previous termination of the AMA.
– A new owner/manager of a property that was registered by the previous owner/manager in the Short-term Accommodation Property Registry, in order to carry out short-term rentals within or outside a digital platform, is required to re-register the property in the Short-term Accommodation Property Registry and obtain a new AMA.
– If, during the rental period, re-rental of the property to the same tenant is agreed upon, the time duration of the re-rental, for the characterization of the rental as short-term or not, is examined independently. For example, in case during a short-term rental from June 10, 2025 to July 30, 2025 (departure date July 31, 2025), i.e., duration of 51 days, it is agreed that the tenant stays until August 12, 2025 (departure date August 13, 2025), resulting in a total stay duration of 64 days, it is considered that a second rental has been concluded from July 31, 2025 to August 12, 2025, duration of 13 days, which is also short-term.
– A natural person who carries out Short-term Rental of up to 2 furnished properties without providing any other service except bed linens always acquires income from real property and not from business activity.
– Short-term rental is exempt from VAT when the lessors are natural persons who have up to two properties. Short-term Property Rental is subject to VAT at a rate of 13% when the lessors are either natural persons who operate three or more properties, or legal entities regardless of the number of properties they operate. If the lessor is a natural person who has at least three properties for Short-term Rental, they are subject to VAT for all the properties they operate.
– For determining the number of properties that a natural person has available for short-term rental, the number of AMAs they have received is taken into account, except in the case where a natural person has available for Short-term Rental one apartment/house either as a unified space or as two rooms (the sum of which will be equal to the area of the unified space for which they received the third AMA) separately, in which case it is considered that they operate only two properties for Short-term Rental.
– The bare owner of a property cannot be a Property Manager. The only case to be a Property Manager and acquire a Property Registry Number (AMA) is in the capacity of Subtenant.
– Every foreign person who holds a real right in Greece must acquire a Greek tax number, both for drafting the transfer contract and for fulfilling their obligations (ENFIA, submission of income tax returns for any income they receive from properties). Those who acquire income from property rental, short-term or not, must acquire a tax number to declare this income.
– In case of cancellation of short-term rental, for which a Short-term Stay Declaration has already been registered before the tenant’s arrival, a modified Short-term Stay Declaration must be submitted due to booking cancellation, so that the said cancellation is declared, whether payment is provided based on cancellation policy or not. If an initial Short-term Stay Declaration has not been submitted, an initial Short-term Stay Declaration is submitted by the 20th day of the month following the cancellation, selecting the special field in the application, only in case payment of rent amount from the tenant is provided based on cancellation policy.
