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Extra tax to be charged per night on Airbnb-style property rent
by Prokopis Hatzinikolaou, ekathimerini.com, 8 November 2016

Greece's first regulatory framework on property rentals via websites such as Airbnb, HomeAway, FlipKey and HouseTrip will introduce a 5 percent tax per night and impose a fine of 50,000 euros on owners who do not enter their details in the relevant register. Owners' revenues will also be taxed at the rates used for rental incomes (between 15 and 45 percent), depending on the income level.

The Finance Ministry's plan provides for every property owner in Greece who advertises their property on such websites to enter a special register and receive a unique number as a means of identification to be used in every ad they upload on those platforms. Once there is an interest in renting the property, the company that runs the website will have to send all transaction data to the ministry, following an agreement to that end with the Greek state.

Owners must also adhere to specific terms aimed at preserving healthy competition and at securing a minimum standard of quality of the properties on lease. A limit will also be set on the number of properties that each owner can lease out short-term.

The 5 percent charge per night will be payable to the Greek state by the broker of the transaction, typically the online platform. Owners with annual revenues of up to 12,000 euros will then have to pay income tax of 15 percent, with the rate rising according to takings.

Friday October 20, 2017
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