Under the Law 5073/2023 (Government Gazette A’ 204/11-12-2023),” Measures to limit tax evasion and other urgent provisions”, effective from January 1st, 2024, the tax regime regarding short term leased properties has entirely changed.
First and foremost, the new law alters the definition of short-term leases like Airbnb and now it is clear that in order that income to be considered as a real estate income, the property should be leased fully equipped and no other services should be provided by the host. Moreover, when more than two (2) properties are leased, a substantial diversification of the source of income has been introduced and that income is considered as income from business activity. The duration of short-term leasing or sub-leasing should be less than (60) sixty days and applies to each lease individually.
An Individual when leases out three or more properties should be registered as business person under new activity code and should comply with VAT regulations. Another important change is that a residence tax amounting to 0,5% of the income from short term leasing for non-residents is now mandated from municipalities, similar to the stay-over duty applied to hotels and “rooms to let”.
The new regulations in Greece are trying to harmonize the business environment for real estate properties, to formulate the tourist industry and at the same time to put some limits in favor of the residential leased properties where the prices are scaling up.
For more information, address your requests to our experts at cfo@privelpartners.gr
