Tax revenue from short-term rentals in Greece has surged dramatically in recent years, with projections estimating collections will reach €830 million by the end of 2024.
Giorgos Pitsilis, head of the Independent Authority for Public Revenue (AADE), announced this during the 25th Prodexpo real estate conference on Tuesday.
Since 2017, tax revenues from short-term rentals have increased over tenfold, rising from approximately €70 million to €740 million last year. In the first nine months of 2024 alone, AADE reported revenues of €742 million, up from €640 million during the same period in 2023.
Pitsilis noted that the AADE, in partnership with short-term rental platforms, has developed tools to collect high-quality market data. Currently, 6,200 legal entities own more than three properties, with a promising compliance rate—90% of these entities have opened tax records. However, he pointed out that around 1,000 entities have either provided incorrect information or failed to take necessary actions. “We will be following up to ensure compliance,” he stated, adding that only 12% of listings on these platforms are problematic.
Regarding vacant properties, Pitsilis acknowledged the current lack of precise data, but anticipated improvements by 2025 with the introduction of a comprehensive property registry in collaboration with the Land Registry.
Alexis Patelis, Economic Adviser to the Prime Minister, shared insights on the short-term rental market, indicating that 100,000 properties currently hold a unique Property Registry Number (AMA) for short-term leasing, with 40,000 added in the last four years. He noted that one-fourth of these properties are leased for at least 90 days annually, leading the government to refrain from imposing a rental time limit.
Patelis highlighted that 80,000 of the properties are owned by individuals, with 80% rented for fewer than 90 days, while 20,000 are owned by legal entities, many of which are leased for longer durations. The average income per AMA is approximately €7,350 annually.
He also addressed a recent decision to implement a one-year ban on new short-term rental registrations in specific areas of central Athens, citing concerns over the impact on local communities. This ban will commence in early 2025, with a review at the end of the year to evaluate its effectiveness.
The Prodexpo event, held from October 21-22 at the Athens Concert Hall, is Greece’s longest-running conference focused on the real estate sector. Patelis emphasised the government’s commitment to improving data quality, enhancing transparency in the property market, and addressing regional disparities in tourism development. He also highlighted the urgent need to improve the energy efficiency of buildings in the face of climate change.
(Source: GTP)