Greece: Greece’s Independent Public Revenue Authority is to introduce a measure which will regulate the short-term leasing of properties, effectively imposing a tax on Airbnb users.
According to an announcement by the Independent Public Revenue Authority (a body appointed by the non-governmental Hellenic Parliament), a stamp duty will be applied on short-term rental listings via electronic platforms.
Why did the Independent Public Revenue Authority introduce the reform?
The Independent Public Revenue Authority introduced the reform as a way to regulate the supposed “Airbnb effect” on the Greek economy. Last year, the country’s tax office presented a stringent framework regarding income from short-term property leasing, which represents a profitable industry despite the current financial situation in Greece.
Leasing apartments and houses through online rental platforms such as Airbnb has offered an opportunity to many Greeks to have an income, given that the country attracts large numbers of tourists annually.
The practice has led to the accumulation of an income that has so far been difficult to tax. Moreover, it has caused other problems relating to long-term leasing property shortages and threatened the country’s hotel industry.
What will be achieved through the stamp duty?
By introducing a three per cent stamp duty, the Independent Public Revenue Authority aims to resolve one of these issues, particularly by curbing tax evasion and generating more revenue for the state.