The government’s interventions for real estate and the tourism industry are moving along two axes, as described in the tax bill that was put up for consultation at the beginning of the week.

The main objective is, on the one hand, to protect the tourist product through the increase in revenue, part of which will be directed to the Municipalities for the improvement of infrastructure, on the other hand, to increase the supply of housing, which is hoped – if achieved – to bring about a reduction in prices of rents, which are near their all-time highs, at a time when household disposable income is shrinking due to punctuality.

The package includes the introduction of a resilience levy on tourist accommodation, tighter restrictions on short-term rentals and the imposition of a cruise tax.

Detailed measures of the new bill

1. End of Durability

The resilience fee applies to tourism businesses and provides for the imposition of a daily charge on accommodation, per room or apartment, and aims to support initiatives that will address the challenges of the climate crisis. The calculation of the fee differs by accommodation category and time period:

During the months of April to October (season)

Hotels:

§ 1-2 stars: 2 euros

§ 3 stars: 5 euros

§ 4 stars: 10 euros

§ 5 stars: 15 euros

Furnished rooms and apartments for renta: 2 euros

Properties available through short-term rentals (airbnb): 8 euros

For detached houses over 80 sq.m., the fee is 15 euros.

Self-catering accommodation – tourist furnished villas (villas): 15 euros

Self-catering accommodation – tourist furnished houses:

§ 8 euros for an area under 80 sq.m.

§ 15 euros for a surface of more than 80 sq.m.

During the months of November to March:

Hotels:

§ 1-2 stars: 0.5 euros

§ 3 stars: 1.5 euros

§ 4 stars: 3 euros

§ 5 stars: 4 euros

Furnished rooms and apartments for rent: 0.5 euros

Short-term rental properties: 2 euros

For detached houses over 80 sq.m.the fee is 4 euros.

Self-catering villas and tourist furnished homes:

§ Villas: 4 euros

§ Tourist furnished houses: 2 euros for surfaces under 80 sq.m., 4 euros for larger ones.

The revenue from the resilience fee will be used for prevention and recovery actions from natural disasters, climate change adaptation projects and improvement of tourism infrastructure.

2. Cruise Fee

In the logic of supporting local infrastructure and managing tourist flows, a cruise fee is established, which is mainly aimed at foreign visitors. The fee is imposed per cruise ship passenger disembarking at a Greek port and ranges from 1 to 20 euros, depending on the port and the tourist season. The revenue from the cruise fee will go to the port municipalities, the Ministry of Shipping and Island Policy, and the Ministry of Tourism for projects to improve port facilities and tourism infrastructure.

3 Limitations on Short Term Lease

To control the growing demand for short-term rentals and protect the availability of long-term housing, the bill places restrictions on areas with a high density of tourist properties.

From January 1, 2025 until December 31, 2025, the registration of new properties for short-term lease in the 1st, 2nd and 3rd Municipal Communities of the Municipality of Athens is suspended.

Properties in these areas will not be able to be registered in the Register of Short-Term Accommodation Properties, while non-compliance with the measure entails high fines:

– A fine equal to 50% of the income from the short-term rental, with a minimum amount of 20,000 euros.

– In case of recurrence, the fine amounts to 100% of the income from the short-term rental, with a minimum amount of 40,000 euros.

4. Tax Incentives for Long Term Lease

Aimed at increasing the supply of long-term rental housing, the bill provides tax incentives for property owners who offer long-term rentals.

In particular, owners who have their properties available for long-term lease will benefit from income tax exemption for three years. This concerns residences:

– With a surface of up to 120 sq.m.

– For which a long-term lease contract of at least three years will be concluded between September 8, 2024 and December 31, 2025.

– These residences were either declared vacant for the years 2022, 2023, and 2024, or were available through short-term rentals during the same years.

The new arrangements are a comprehensive strategy aimed at promoting sustainable tourism development and ensuring affordable housing for permanent residents.

The new arrangements, according to the government and the Ministry of National Economy and Finance, constitute a comprehensive strategy aimed at promoting sustainable tourism development and ensuring affordable housing for permanent residents. At the same time, the State attempts to increase tax revenues from the growing tourist flows, channeling them into actions that improve infrastructure and strengthen economic resilience