Greek gov’t is planning to activate restrictions on Airbnb rentals

The Greek government is planning to activate restrictions on short-term rentals via online platforms like Airbnb. Reason for the government plans is the dramatic increase of the phenomenon that has lead to affordable rental prices for locals.

The ministries of Finance, Labor and Tourism are to set a committee assigned with the work out of a joint ministerial decision to tackle the problem.

The restrictions are to be imposed on both private and professional leasers of short-term rentals.

Limitations are reportedly foreseen on a certain number on overnight stays per property, the identification of the number of properties owned by each tax payer number, but also specific revenue limits.

The issue of short-term rentals was raised at a recent meeting of the Cabinet, where the government’s housing policy.

Citing government sources, media report that the turnover from Airbnb reached almost 2 billion euros in 2018.

The negative impact of this development affected the available properties for long-term rentals, a sharp increase of long-term leases, a wave of evictions in order to make apartment s free for short-term leasing in specific areas as well as the turnover decrease in hotels revenues.

In certain areas in central Athens, prices for long-term rentals have seen an increase of up to 30% in last two

Leaflet seen beginning of February in Koukaki district, near the Acropolis – via @derekgatopoulos

The percentage of exploitation of short-term leases has reportedly exceeded 50% of total leases.

Restrictions are already foreseen with the legislation of 2016 for short-term leases, however, they have been waiting for a joint ministerial decision in order to be activated.

1. Short-term lease of more than two properties per registered income tax number will not be permitted.

2. The rental of any property shall not exceed 90 days per calendar year, and for islands with a population of less than 10,000 the limit shall be set at 60 days per calendar year.

3. In order to exceed the 90 or 60 days rental limit, it must be proven that the total rental income will not exceed € 12,000 per year.

The planned restrictions will not be implemented in all regions in Greece, but in certain areas where housing needs to be protected.

The government is also considering to increase taxation on professional short-term leasers.