Starting January 2024, individuals and businesses engaging in short-term real estate leasing with three or more properties will face new regulations. They will need to declare this as a business activity under a new Activity Code (KAD) and be taxed at a rate of 22%. Additionally, they will be subject to a VAT regime similar to hotels (13% for accommodation) and likely accommodation and visitor fees.
However, those leasing up to two properties will remain under the current tax regime for property rental income. To combat undeclared rentals, there will be stricter control procedures involving data from online rental platforms like Airbnb.
These changes were announced by Prime Minister Kyriakos Mitsotakis to address concerns about the impact of short-term rentals on the housing market and competition in tourism. More details are expected to be revealed by government officials. Short-term rentals now account for up to 20% of the tourism-related economic activity in Greece.
Source: ekathimerini.com
