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Greece to tax short-term rentals via Airbnb with 15%-45%, and the platform with 5% per transaction

The Greek Finance Ministry has apparently prepared the long awaited law that will charge up to 45% on taxes for short-term rentals via online platforms like  Airbnb.

Greek media report today that the deputy minister in charge of taxes Tryfon Alexiadis has submitted the draft to Katerina Papanatsiou, the minister who has succeeded him at the government reshuffle Friday.

The draft law consisting of 130 pages estimates annual revenues for the state at  250 million euros.

The plan provides among others:

Lessor’s registration in a special registry of the General Secretariat of Public Revenues. And a fine of  €50,000 if the lessor does not register.

Limit the number of properties per lessor and number of leasing per year.

A tax of 5% for short-term rentals. The tax will be paid by the mediators i.e the online platforms in real time.

But also an information exchange agreement between the platforms and the Greek Finance Ministry.)

Taxation of the revenues will be according to the law of renting a property and lessors will not be considered as entrepreneurs:

Tax 15% for annual income up to €12,000, tax of 35% for annual incomes €12,001-35,000 and tax of 45% for incomes higher than €35,001.

According to state broadcaster ERT, the property limit could be 3 to 4 objects per lessor and the maximum rent could be up to 90 days per year.

In Attica, there are 2,500 rooms, apartments and houses rented via the Airbnb. The accommodation charge per night starts at 50 or 60 euro. On the islands, the situation is totally different with the charge to be often 500 or even 1,000 euros per night.

The ministries of Development and Tourism are reportedly in negotiation with Greece’s lender son this issue.

PS A tax to be charged in real time at and by the Airbnb platform during the transaction? I want to see this! Such an ambitious plan by the Greek tax authorities would rather make sense in the joint action of EU member states against Airbnb.

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22 comments

  1. Yes! Go ahead! Regulate everything. Every tiny little detail, you red socks. Suffocate every small opportunity, make life hell for everybody who is at least trying to earn some money.

    Oh, I forgot. “Greece is a business friendly environment.” Sure.

    The sooner these crooks leave their chairs for good, the better for everyone.

    • keeptalkinggreece

      don’t you think those renting for 500=1000 should be taxed?

      • It’s the usual story with the Greek state: either do nothing, or do too much and do it badly as well. Tsipras has turned out to be a true conservative — quite a problem for ND to compete with him.

      • How about no? How about giving these people at least a chance to make enough money to earn the rediculous ENFIA.

        Plus: Who else than beserk Greek bureaucrats need 130 pages (!!!!) to regulate a tax on vacational rental? And this bracket and that detail and no, sorry, not more than 90 days, but …

        AirBnb brings in individual tourists, that spend money. Other than the all inclusive ones. But on the behalf of the owners of exactly these hotels the law is made.

        • keeptalkinggreece

          500-1000 per night accommodation is way much more than a year’s enfia if x90 nights in the year. and i hear also in other countries property owners pay property taxes whether is called enfia or Mickey Mouse. However, I cannot say how much they do pay.

          • you did not say per night initially ….

          • I can tell you that. In the UK in my district the minimum property tax is £900 a year. If it is single occupancy you get a 25% discount, but other than that it is pay up.

            • it doesn’t depend on size, age, & other factors?

            • It’s not a property tax: it’s the Council tax, which replaced the local “rates”.
              ~
              And the answer to KTG (below) is that it doesn’t depend on size, age etc. because this tax is itself the changed version of the Poll Tax that Thatcher tried to impose on the country — where everybody paid the same, regardless of income or wealth. So the UK tax varies mostly according to the area you live in (and the expenditure of the local council) and if it is a single-occupancy house (reduction of 25%). It is not a property tax at all, and therefore bears no comparison with Greece’s ENFIA. It is a local tax levied to finance local services.

              • keeptalkinggreece

                in addition to ENFIA, Greek property owners also pay Municipality Tax.

                • I also pay a municipality tax in my electricity bills — about 100 euros a bill. Greeks pay far more tax than the British.

  2. This administration seems hell bent on taxing any enterprise out of existence, when the tourist industry collapses due to over taxation, they will ring their hands and blame the tour companies, the other countries for being less costly, and finally the tourists for going elsewhere, but they will not blame themselves and their grabbing taxes.
    They really don’t understand commerce, they most see someone making money and paying tax and want more.

    • No, they don’t see people making money and ask for more: they just demand money from everyone, including people with no money at all. This is the fascism of the Troika that has been imposed on Greece by the Germans.

    • If it were just Greece trying to get AirB&B under control, you comment might have merit. And why would tour companies, who don’t use AirB&B be involved? Or are you talking about something totally different from what KTG posted.

      Each and every tourist places demands on the visited country’s public infrastructure. You know, little things like medical care for the 1,000+ plus seriously injured, drunken Brits that use our NHS hospitals’ emergency rooms every year (Data reported by your own Foreign Office). Or the significant increase in NHS medical personnel at the “cheap” holiday resorts you want us to operate, so you can be treated quickly for sunburn, cuts, scrapes and moped accidents.

      I laugh when I hear about all the “tourist revenue” a country can get by offering cheap accommodations. If the prices charged do not cover expenses, then as the Maldives learned, tourist facilities begin to get shabby. Thus the Maldives have been focusing on people from countries that will spend more when they holiday.

      A major issue with AirB&B is tax avoidance. Taxes that provide the infrastructure and public services tourists expect when they go on a vacation. Is it so far fetched to expect tourists to make a tax contribution towards the infrastructure and services they depend on for a safe and enjoyable holiday?

      • keeptalkinggreece

        in New York they want to fine with $7.500 Airbnb lessors

        • KTG

          In several US cities, it also about AirB&B driving up housing costs in residential neighborhoods. Investors are buying up properties solely to list them on AirB&B, without residing in them, yet claiming, to the municipality, that it is residential property. Residents of San Francisco are up in arms about it, because there was already a shortage of affordable residential units, and AirB&B subscribers have further increased that shortage, and thus driving up prices and rents. And the city is concerned, because AirB&B rentals are generally “off the books”, and thus the city loses the tax revenue on every rental that takes away business from hotels and B&Bs that are on the books.

      • 1, Not all “Brits” are drunkeds, many are families, as not all Greeks are hospitable and friendly.
        2. Tourists bring in much more revenue than they cost, that is why the government encourage it.
        3. Health care costs are in general covered by the EHIC system which if the Civil Servants fill in the paper work and submit it, Greece will be reembused for any cost, this covers EU tourists in Greece, andGreek tourists in the other EU countries they may visit.
        The Greek government are over taxing in all areas, they need to encourage business and cut expenditure..

        • I simply said 1000+ drunken Brits, because that figure has been cited by the UK Foreign Office regularly in warning letters to UK citizens about alcohol abuse. We also provide health care to thousands of tourists of other nationalities.

          One cannot get EHIC coverage unless one has an EHIC card, which is not automatically issued, but must be requested by the tourist before leaving home. It is rare for a tourist to present an EHIC card here, so please do not lay the problem on civil servants.

          I would suggest you bring your concerns about Greek tax rates to the lenders, as Athens cannot pass revenue bills without lender approval.

    • Giaourti Giaourtaki

      Tourism = terrorism, makes no sense at all as the Aegean is already dead and any economy relying on idiots and their actual fashions is a bubble of capitalistic void and not sustainable, also the future will not bring rich creeps that will have money for travel – may be it’s cheap enough in Syria.
      The last years it was only good for postcards because dead sea looks nice on it but now all the scrupulous bastards have murderous blood-phones.
      Houses for homeless – not for tourists, air-bullshit is scum like all apps, start-ups are parasites destroying whole economies and taking Mafia-fees just for nothing, a service for stupids and lobotomised by internet and its “community” that murders millions to have petition online against their own massacres.

  3. At most a tax on such accommodations is around 11% in cities around the world. No transaction fee, no pre-inspections etc. As long as the home is to building code there is no problem. Why the fuck is everything so difficult in the banana republic?
    In the end, in order for a business to succeed in Greece it should go in with the mentality of scamming both people and the tax collector.

    Tsipras is fucking up Greece but then Greece was never a solid investment haven!
    Shlomo has spoken…..

  4. Dear all, I think you confuse the issue. Normal countries charge taxes for the reasons you mention: infrastructure, services, public works. Greece, under German occupation, charges taxes to make its citizens bankrupt, to rob their property and later to be able to confiscate it. Taxes in Greece have nothing to do with this. They aim at confiscation and subsequent looting by the Germans. This is why all subservient Quisling governments complete on how many new blind taxes they are going to impose. They don’t want these taxes to be paid in money; they want to seize assets.