Upcoming Changes in Greek Rental Sector: Government Initiates Legal Reforms and Taxation Measures

The Greek government is preparing to implement changes to the legal framework and potentially taxation for approximately 145,000 residences in the country. The surge in short-term rentals has resulted in a nearly tenfold increase in state revenues over the past four years, currently reaching 530 million euros. To ensure the smooth operation of the sector and prevent further complications for those seeking long-term rental properties, the government plans to intervene and introduce new measures.

According to sources, these interventions will start from scratch, with the government proposing the segregation of individuals from companies. This means that asset managers will be distinguished from owners who possess one or two properties. Simultaneously, the government aims to establish a maximum number of days per year during which a property can be made available for short-term rental. Collaboration with local authorities will be sought to determine these time limits and restrictions, as the institutional framework already exists, but no ministerial decision has been issued to enforce them thus far.

Regarding real estate managers and large companies that own apartment buildings, they will be required to convert into legal entities and obtain a special operating badge. The government is contemplating the imposition of a residence fee and VAT on these entities, similar to the current practices applied to hotels.

Currently, owners who rent out their properties through platforms like Airbnb are exempt from VAT. However, starting in 2025, a pan-European VAT will be introduced for short-term rentals. The VAT rate for tourism packages remains at 6%, with the reduced rate implemented during the pandemic being maintained. Additionally, accommodations such as hotels and tourist establishments are subject to an accommodation fee ranging from 0.50 to 4 euros, depending on the establishment type.

Finally, a fee will be established to finance housing structures for civil servants who are unable to find affordable rent accommodations. These measures aim to address the challenges faced by civil servants in securing suitable housing options.

Source: [kathimerini]