Greece’s tax authorities are increasing the burden on owners choosing to rent out their property short-term.
A recent circular by the Independent Authority for Public Revenue (AADE) includes a provision that states that any short-term rental accommodation should operate as a company branch, which is also subject to a fee for practicing a profession and other management costs (e.g. maintaining a registered office etc).
So instead of the respective management company paying the relevant cost once, it will now be asked to pay it for each property separately, which multiplies charges and makes the activity unattractive for most, daily kathimerini reported.
At the same time, it should be recalled that the income obtained from natural persons from the short-term rental of real estate or just rooms is considered income from real estate and is exempt from VAT, as long as the short-term rental concerns up to two properties, or from business activity and is subject to a reduced VAT rate of 13%, as long as the short-term rental concerns more than three properties and above. More details here in Greek.
As the Greek government increasingly takes measures to limit short-term rentals with the aim to bring down long term rentals, you should better get advise with your accountant.
