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What has happened? The National Economy and Finance Ministry will impose an accommodation fee on the 170,000 properties that are active in the short-term rental sector, as well as value-added tax (VAT) on those owner-managers who have three or more properties.
The ministry’s plan is expected to be submitted to Parliament soon.
Details. In the event that the entire apartment building is used for short-term rentals, the owner should proceed to convert it into tourist accommodation. This means that he will have to obtain the appropriate license from the Ministry of Tourism, fulfilling the conditions that currently apply to tourist accommodation.
At the same time, VAT will be imposed on those property owners who rent out three or more units through the platforms. This means that they will have to proceed with starting a professional activity.
Quote. As the Deputy Finance Minister Haris Theocharis has announced, “a combination of interventions is being established with the aim of dealing with unfair competition with hotels, but also with the secondary negative effects on the real estate market and rents. The development of short-term rentals, which are an important source of income for thousands of owners, is not affected.”
Context. According to the ministry, 168,819 properties owned by 107,719 individuals and legal entities are included in the Register of Short-Term Accommodation Properties of the Independent Authority for Public Revenue (AADE). We are talking about 27,367 real estate properties owned by 5,297 enterprises, and 141,452 real estate properties owned by 102,422 individuals.
Of these, up to two real estate assets are owned by 94,982 taxpayers (92.7% of individuals), and 7,440 individuals own three or more real estate assets, amounting to 30,329 assets.
Consequently, 7,440 individuals and 5,297 businesses will be required to pay VAT unless they switch to long-term leases.
Source: Ekathimerini
Photo by Oleg Prokopenko on Unsplash
