Two billsone of the Ministry of Finance and one of the Ministry of Tourism, are expected to change their “face” from 2025 short-term rental propertiescontributing to limiting tax evasion as well as dealing a blow to the housing crisis.
In particular, the already passed provisions of the tax bill as well as the proposed tourism provisions concerning short-term rental properties, introduce restrictions on new permits, increase the durability fee, while at the same time establishing for the first time a framework for the operation of properties that are rented on a short-term basis with hygiene standards and security. Obviously the relevant provisions of the Ministry of Tourism bill may change since they were only put out for consultation on Friday (6.12.2024), however they are indicative of the government’s intentions to further regulate the market.
Specifically, the bill provides with regard to short-term rental:
- The properties should be insured for civil liability for damages or accidents that may occur.
- The properties should be primary use areas and have natural lighting, ventilation and air conditioning.
- A control framework for compliance with the specifications is established (by the services of the Ministry of Tourism and by mixed levels of control with AADE employees) with the possibility of imposing sanctions and fines in favor of the Greek State, in cases of violations, corresponding to those applicable to tourist accommodations.
It is recalled that only on Wednesday (4.12.2024), the tax bill, together with the provisions concerning short-term rentals, was voted in Parliament.
Thus, as of the new year, the issuance of new permits for short-term rentals in the 3 central apartments of Athens is prohibited, with the last deadline for the owners to register them in the AADE Short-Term Accommodation Property Registry being December 31, 2024.
The duration of the measure is one year, but there is a “window” to extend it until December 31, 2026.
Violators will be subject to administrative fines equal to 50% of the income from the short-term rental of the property, with a minimum amount of 20,000 euros, while if there are recurrences within the same tax year, the fine may reach up to the amount of rents collected, with a minimum of limit of 40,000 euros.
The second change the tax bill brings to short-term rentals is the increase in the durability fee.
The new “map” of the durability end is:
- Increase from 1.50 euros to 8 euros per day between April and October
- Increase from 0.50 euros to 2 euros per day during November – March
- Regarding detached houses over 80 m2, the durability fee will be 15 euros from April – October and 4 euros from November – March