By Vangelis Dourakis

New rules that determine the decisions of those who dispose of real estate through short-term rental platforms expecting profits are adopted by the new tax bill. The framework within which those active in Airbnb-style rentals will be asked to operate from the new year is becoming “suffocating” and hiding “traps”. The Government, in order to “golden the pill” adopts tax exemptions giving an escape to those who head for long-term leases.

Indicative is the fact that for the first time in our country “bans” are being imposed, as entire neighborhoods of Athens are excluded from short-term rental activities, apart from of course the brand new landscape that is taking shape in the taxation of type leases Airbnb.

In which areas of Athens does Airbnb-style rentals stop?

However, those property owners who want to remain on the market and make their apartments available to tourists next summer, if their property is in the center of Athens, should hurry to register it in the AADE Registry and obtain a Registry Number Akinetou (AMA) until December 31, 2024.

And this is because from January 1, 2025, the availability of new homes for short-term lease is suspended, for a period of one year, in the 1st, 2nd and 3rd Municipal Community of the Municipality of Athens.

In particular, from January 1, 2025 to December 31, 2025, it is not permitted to register in the Short-Term Accommodation Property Registry properties located in the 1st, 2nd and 3rd Municipal Districts of the Municipality of Athens.

But what are the areas where Airbnb-type activity is suspended?

  • 1st municipal district of the Municipality of Athens, to which it belongs center of Athensincluding the commercial and historical center of the city, namely the areas:

– Constitution

– Kolonaki

– Plate

– Monastiraki

– Scabies

– Makrigianni

– Acropolis

– Cuckoo

– Ilisia

– Hilton area

– Concord

– Vathi Square

– Expiration

– Naples

  • 2nd municipal district of Athens, which includes the areas:

– Pagrati

– Marble

– Mets

– Saint Artemios

– New World

– Battle of Analatou – Baknana

  • 3rd municipal district of Athens, which extends from Botanikos and Roof up to Petralona and specifically includes the areas:

– Thisio

– Philopappou

– Petrolona

– Gas

– Silk factory

– Botanical

– Roof

“Open” to new bans in the future

Similar “bans” for other areas may be adopted at any time in the future, as in the relevant legislation, i.e. Article 28 of Law 5073/2023 “Duration and tax treatment of short-term rental of properties Amendment of article 111 of Law 4446/2016” it has been foreseen to give more possibilities in advance to the Government for further arrangements, if necessary.

Specifically, paragraph 8 of article 111 of Law 4446/2016 after the amendment by article 28 of Law 5073/2023 states the following:

“By joint decision of the Ministers of National Economy and Finance, Development and Tourism, for reasons related to the protection of the residence, geographical areas may be defined, where restrictions will apply to the availability of real estate for short-term rental as follows:

a. Not to allow the short-term rental of more than two (2) properties per A.F.I. beneficiary of income.

b. The lease of each property shall not exceed ninety (90) days per calendar year and for islands with less than ten thousand (10,000) inhabitants sixty (60) days per calendar year. Exceeding the duration of the previous paragraph is allowed, as long as the total income of the lessor or sublessor, from all the properties available for lease or sublease, does not exceed twelve thousand (12,000) euros during the relevant tax year”.

Data that should be taken into account by all property owners who look forward to profits and invest for them in the short-term rental.

And new tax burdens

Another element that those who want to make their properties available for short-term rental should take into account in order to make their decisions is the increase in tax burdens.

With the new bill, the climate resilience fee (formerly the accommodation fee) for Airbnb-style properties is increasing:

– From 1.50 euros to 8 euros per day between April and October

– From 0.50 euros to 2 euros per day between November and March

If it is a detached house over 80 m2, the durability fee will be 15 euros from April – October and 4 euros from November – March.

In addition, failure to register in the Short-Term Property Registry and illegal renting without the AMA will result in severe penalties. In particular, an administrative fine equal to 50% of the income from the short-term rental of the property will be imposed, with a minimum amount of 20,000 euros. If a new violation is detected within the same tax year, the fine can reach up to the amount of rents collected, with a minimum limit of 40,000 euros.

Two-speed taxation of short-term income

The property manager who wishes to carry out short-term leases is obliged to:

– To have obtained a Property Registry Number (RMA)

– To post the AMA on the digital platforms of the sharing economy, as well as on any means of promotion

– To submit the Short Term Stay Declaration by the 20th of the following month from the day of the tenant’s departure.

And of course, we must not forget that from the beginning of 2024, the taxation regime for Airbnb-type properties has already changed and VAT has also been imposed. Specifically,

– If a natural person has up to 2 short-term rental properties, they are treated as a natural person in any case and their income from short-term rentals is considered real estate income.

– However, if an individual owns 3 or more properties in the context of short-term rentals, the income obtained from the short-term rental is counted as business income.