The new tax regulations submitted to Parliament brings five important changes to the short-term rental property sector in Greece.

In detail, the draft law mentions the following:

• Individuals with three or more short-term rental properties are required to start a business, with the income being considered business and subject to VAT.
• The fines for not registering in the "Register of Short-term Accommodation Properties" are increased to 50% of the gross income of the last tax year, with a minimum fine of 5,000 euros.
• Short-term renting is defined as renting a property for less than 60 days, regardless of digital platform, as long as only accommodation and linen services are provided.
• The accommodation fee for transients (0.5% of income) is also extended to short-term rentals.
• Abolishment of the accommodation tax and replace it with the “climate resilience fee” on hotels, apartments, villas, resorts and short-term rentals. The fee is tiered depending on the type of accommodation and the time period that will be applied. From November to February from 0.5€ - 4€ while from March to October it ranges from 1.5€ - 10€ per night.

In detail, the new climate crisis resilience fee will be paid by the resident and is imposed after his stay at the accommodation and before his departure from it, with the issuance of a "special item - proof of collection of the climate crisis resilience fee", by businesses and must be attributed to the Tax Administration with monthly declarations, which are submitted until the last day of the month following that of the issue of each "special element - proof of collection of the climate crisis resilience fee".

As we mentioned above, the fee is staggered and is structured as follows during the months of March to October:

• furnished rooms for rent - apartments for 1.50 euros
• properties available through short-term rental at 1.50 euros. If the properties available through short-term rental are single-family houses over 80 sq.m., a fee of 10 euros is imposed
• self-catering accommodation – tourist furnished villas for 10 euros.
• main hotel accommodations:
• 1-2 stars, 1.5 euros
• 3 stars, 3 euros
• 4 stars, 7 euros
• 5 stars, 10 euros

Accordingly, during the months of November to February as follows:

• furnished rooms for rent - apartments for 0.50 euros
• properties available through short-term rental at 0.5 euros. If the properties available through short-term rental are single-family houses over 80 m2, a durability fee of 4 euros is imposed
• self-catering accommodation – tourist furnished villas for 4 euros
• main hotel accommodations:
• 1-2 stars, 0.50 euros
• 3 stars, 1.50 euros
• 4 stars, 3 euros
• 5 stars, 4 euros

Sources: Η Ναυτεμπορική, CNN