In line with other European countries, the regulations for short-term letting in Greece are becoming more rigorous. For example, the definition of short-term leases has been changed, and an activity number has also been introduced. The Ecovis experts know the details.
Following other European Countries, Greek short-term leasing became more rigorous. The first thing that has been amended is the definition of Short-term leases itself, which now states that they are rental or sub-rental as published in the related online platform, which provides no other services than an accommodation that does not exceed 60 days and bed linen, while other countries have set this limit to 90 days.
The main changes to the short-term lease regulations:
The amendment of the definition of short-term leasing
The introduction of a new business code activity number (KAD) for this kind of hospitality service
The individual owners of more than three of such short-term lease properties must start a business activity under the new KAD and will be treated as business entities.
The owners of business entities carrying out such activity will be subject to VAT similar to “rooms to let”, including a hospitality levy and green tax, instead of the latest municipality or accommodation tax.
The municipality tax will be replaced by the green tax levy and will increase for all types of accommodation (Table 1)
Don’t forget about the VAT when you are an owner of Airbnb-like rentals. We would be happy to advise you. Dimitrios Leventakis, Managing Partner, Certified Internal Auditor CIA, IBFD Certified Tax
Table 1: Updated accommodation costs per category
Cost per day
Increase (in €)
Previously: Municipality tax per day (in €)
Now: Green levy per day (in €)
Rooms to let
Short term leasing
Initial reactions to these announcements were mixed because although hotel owners may see this as leading to fairer competition, they are cautious about the increased accommodation costs.
Individuals with more than three Airbnb-like properties must now examine the implications of starting of such a business activity. At the same time, legal entities already doing business with short-term leases must work out the VAT burden on these revenues.