The Council of State in Greece has ruled that at least one part of the taxation of short-term real estate rentals Airbnbn is illegal.
The association of property owners POMIDA, the “Association of Short-Term Real Estate Rental Companies” and five short-term real estate rental companies had appealed to the Council of State (CoS) and requested that the circular of the Independent Public Revenue Authority (AADE) on the taxation of short term rentals (Airbnb etc), dated 9. April 2024, is illegal and it should be revoked.
With its no. 601/2025 decision, the Second Department of the CoS declared the circular of the Public Administration Authority of 9.4.2024 concerning the tax treatment of short-term real estate rentals (Airbnb) illegal and non-existent, especially with regards to the specific part that provides the imposition of a self-contained business tax.
The circular issued on 9. April 2024 was regarding the tax treatment, in terms of business tax, income tax, Value Added Tax and other indirect taxes and fees, of short-term rentals (Airbnb, etc.).
Due to the importance of the issue, the final judgement was referred to the Plenary of the Council of State.
POMIDA and the other applicants argued, among others, that the implementation of the circular directly or indirectly affects the owners or usufructuary of real estate who are involved in the management of short-term rentals of their real estates, as they are required to pay an self-contained business tax for each one of their properties.
The 7-member composition of the Second Department of the Council of State stated that the contested circular, which “has a regulatory character”, has not been published in the Government Gazette, but has only been posted on the internet (DIAVGEIA) and has been put into effect, “therefore it is unlawful, non-existent and voidable for reasons of legal certainty”, as the applicants rightly argue.
Thus, according to the opinion that prevailed in the Second Department of the Council of State, the annulment applications should have been accepted and the contested circular should have been annulled, “according to the reasonable grounds”, but due to the importance of the entire issue, it was referred for final judgment to the Plenary of the Council of State, while State Counselor Efstathia Skoura was appointed rapporteur. [source: avgi.gr]
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