Greek authority announces registry for short-term rental leases

Greece: The Greek Independent Authority for Public Revenue (AADE) has announced an electronic registry allowing property owners to lease their homes as short-term rentals online.

From now on, Greek Airbnb hosts listing their homes on the site and other platforms must submit a short-term residence declaration for each tenant and enrol properties in a residential property data system, as well as declare all financial transactions.

An AADE announcement said: “As of today, 30 August 2018, the Short-term Property Registry is open on AADE’s site and the relevant application for the declaration of short-term leases (in calendar format) is currently operational.”

AADE instructions require all operators for short-term rentals made from January 1 2018 to August 30 2018 to enrol in the AADE’s registry by November 30 2018. They must also submit an accumulative earnings declaration for the January 1 2018 – August 30 2018 period for each property leased separately.

In addition, the AADE said that it was in “advanced discussions with digital platforms operating in the sharing economy (Airbnb, Booking.com, and HomeAway) with a view to concluding cooperation protocols and welcoming cooperation initiatives, and with other sharing economy platforms” before Greek ministers make a final joint decision on it.

Airbnb’s Regional Policy Campaign Manager EMEA, Sofia Gkiousou, said to Greek media: “Today’s announcement is a positive move by the government to simplify the home sharing process for thousands of Greeks, and we are delighted to support it by making it even easier for the hosts responsible for sharing their space.

“Along with our cooperation, we can help families align with regulations, create new sources of income that will strengthen our society and help rebuild the Greek tourist product.”

Hosts not complying with these regulations could face fines of up to €5,000 euros, according to the AADE.

For income up to €12,000, tax is imposed at a rate of 15 per cent. Takings between €12,001 and €35,000 will be taxed at a 35 per cent rate and annual gains over €35,000 will be taxed at a 45 per cent rate.

For those offering additional services, the earnings are assessed as income from business activity. These are taxed at 22 per cent for earnings up to €20,000, 29 per cent for yields between €20,001 and €30,000 and increases up to 45 per cent for profits exceeding €40,000.

The online platform aims to ensure hosts comply with taxation and consumer protection.

Meanwhile, Greek tax officials are stepping up efforts to prevent homeowners who rent out properties on home-sharing platforms failing to declare earnings. AADE inspectors are posing as tourists seeking to rent out short-term accommodation via these sites.