The Greek government aims to regulate the short-term property rental sector by implementing several key measures that will have a significant impact on this market segment and its participants.
Introduction of VAT for Large Landlords: The Greek government plans to make changes that will clearly distinguish between small property owners who rent their properties for a few days a year and companies or large landlords who rent out numerous real estate properties. The latter will fall under commercial legislation, including mandatory VAT taxation of rentals.
Licensing of Multi-Apartment Buildings: There is consideration of the need to issue special licenses for multi-apartment buildings exclusively intended for short-term rentals. Such properties will be considered tourist accommodations and will be subject to relevant regulations.
Restrictions on Rental Durations and Property Numbers: Authorities are also exploring the possibility of imposing temporary limits on the duration of short-term rentals and the number of real estate properties available for rent in specific areas.
VAT Exemption for Individuals: VAT exemption on rental income will only be retained for individuals who have registered a certain number of properties under their VAT taxpayer number. This measure is aimed at supporting private landlords.
The goal of these changes is to establish order in the rapidly growing short-term rental sector, which has operated largely outside official regulation for a long time, often facing taxation and regulatory challenges. These measures also aim to preserve the unique character of urban neighborhoods and tourist areas, as well as ensure accessibility of real estate for rental by citizens, students, and other social groups.
At present, the Ministry of Finance is developing the necessary legislative framework in collaboration with the Ministry of Tourism and other government agencies. Final decisions will be made after the completion of this process.