Greece’s Tourism Ministry is initiating a new draft bill that brings extra charges and stricter requirements for short term rental properties, such as those listed on the Airbnb accommodation platform. The additional cost is estimated to range from 500 to 600 euros.
Properties rented out for short-term leases are obliged meet specific requirements to ensure safe occupation. The properties must primarily be residential spaces with natural lighting, ventilation and air conditioning.
The properties must be insured against damages and accidents and equipped with fire extinguishers, smoke detectors, circuit breakers or anti-electric shock relays and escape route signage. Furthermore, a certificate of rodent and pest control is mandatory, as well as first aid kit, and a guide with emergency contact numbers.
Property managers face an immediate administrative fine of 5,000 euros if access to the inspected property is denied or any of the specified requirements are not met.
Property owners, on their part, express their discontent due to the additional economic burden that will be imposed upon them. Market representatives highlight that compliance costs for property owners represent an additional expense that affects those operating Airbnb rentals.
For example, it is noted that liability insurance for damages costs around 200 euros, the purchase of a fire extinguisher is 100 euros, disinfection services costs another 100 euros depending on the property’s square footage, and smoke detectors cost an additional 100 euros.
At the same time, there has been significant backlash regarding the hefty fines imposed for non-compliance. Property managers face an immediate administrative fine of 5,000 euros if access to the inspected property is denied or any of the specified requirements are not met.
Within fifteen calendar days from the date of the violation being identified, the short-term rental property manager must comply with the requirements.
If a follow-up inspection occurs within one year of the notice of the fine and finds further non-compliance, the fine is doubled to 10,000 euros. For each subsequent identical violation, the fine is quadrupled relative to the original penalty.
source: tovima.gr
This will serve to only push out the lower end of the market and for those owners who own 1 or 2 properties, who don’t have a business, the extra cost will rise if you have to open a VAT Number as well.
I am one of those owners being pushed out, and yes I will exit the market for now, as there is a tax incentive to do so. But my accommodation was always used by young families and young couples from All over Europe who cant afford exorbitant prices to have a holiday in overpriced Athens hotels in peak season. Then, and most importantly, my apartment was used by families of Greek people who come from the islands in winter to do an operation at a nearby hospital. They stay for 2 weeks or more, so this cheap, high quality alternative is now gone for them, they can now stay at the ‘love’ hotel nearby for more the price and which is half as nice and less equipped.
Lets not even mention that the government will now charge 8 euros a day (March to October) to ALL of us for every single day we stay at an accommodation in Greece, a new stealth tax on an already overburdened Greek Taxpayer
I agree with the last comment. There are situations in Athens and other big cities that should be stopped. Where a single person or group takes 12 apartments for example, and rents then out on Airbnb, very bady furnished without amenities, and drastically affecting the rental market for your couples. However there are many owners like the one mentioned above, and mine on an island that are offering tourism to families and couples who could no way afford a hotel. Also on my island there are very few hotels. 2 of the rooms are in my own home where I reside and I have 1 apartment . I have a fire extinguisher, but smoke alarms are ridiculous.. we done have wooden houses like the USA. Also the cost of insurance, and the tourist tax of 8€ and 15€ for the apartment make it impossible to rent anymore.
This will definitely affect tourism in Greece, which is all the Greek economy has
It will also encourage black market, people are becoming more clever at searching places through Instagram, FB and Google!
Some restrictions are needed,but to increase the cost so much in one year is detrimental to tourism. They can go to Turkey, Albania, Croatia and elsewhere!
I am not involved in rentals, so I have no dog in this fight, but it is worth noting that the costs outlined above are one off costs. If a property was rented for 100 days per year they would add less than €5 per day to the rental charge. Hardly a fortune, especially as this cost would be spread across several guests?
Is it that unreasonable to expect a rented accomodation to have a fire extinguisher or a smoke detector? Given accidents that have happened in the recent past I would add a CO detector to the list.
your not wrong, but you don’t have the full picture, my apartment is in an area of Athens that is not saturated with Airbnb’s. There is a threshold of what you can charge in certain areas, many times 5 euros is the difference between having a booking or not. In the last year, I’ve seen that guests are quite sensitive to pricing, ie the price is 65, I don’t have a booking, drop it to 55 and its booked immediately.
Also, remember that the 500 euros which I think is lower than it will really be, is a deductible to one that has a VAT number, the ones who don’t have a registered business will have to absorb these costs. If I register a business then there are other costs, accountant etc. So the 500 depends on what level the place is, ie if I charge 150 a day and above, no big deal, if I charge 55 per day, then these costs are unsustainable. Remember the government has just introduced an 8 euro per day fee which also has to be added on.
This will only affect the 1 or 2 apartment owners, the people who own ten Airbnb’s , well its nothing for them. The one or 2 apartment owners are the ones that greet you when you arrive and give personal service, the 10 airbnb owners are the ones with the lock keys and no personal service. How is that going to be great for the tourism experience.
And WHO exactly will be inspecting these places to check if the owners are in compliance?
The ultimate solution to AirBnB is to declare them tourist accommodations and get them out of mixed residential properties. Apartment buildings in historic centers are not designed to safely support a parade of tourists. In Greece many areas including Plaka in Athens are prevented from adding hotels and tourist accommodations by law but short term rentals is a loophole exploited by these owners which make no mistake the majority are large corporations. Residents are forced to leave our butcher shops and vegetables shops are pushed out as rents are increased our restaurants only serve only tourist food that is barely fit to eat. The residents reward thefts, noises, and additional building expenses as we try to keep the sewage system from flooding our apartments.
The government should also required a 100 percent positive vote of all building owners to allow the conversion of a residence to short term rental