AADE issued a new guide for short-term rentals, for the criteria, services and taxation of Airbnb.

The duration of the lease is the main criterion for the classification of the lease as short-term or long-term, as well as for its tax treatment. This differentiation is particularly important, as it determines the way of taxation and the resulting obligations for the owners or managers of the properties.

The Independent Public Revenue Authority (AADE) has issued a detailed guide, which includes 52 questions and answersin order to clarify the issues concerning short-term and long-term leases.

According to the instructions of AADE, leases of up to 59 days are considered short-termwhile the leases of 60 days or more are classified as long-term. This differentiation implies a different tax regime for the two categories. In any case, compliance with applicable tax provisions is essential to avoid fines and legal problems.

Here are the main highlights of the AADE:

A. Lease duration

The duration of the lease is the primary criterion for its characterization. In short-term rentals, the maximum is 59 days, provided the property is furnished and no additional services are provided. The same characterization applies regardless of whether the lease is made through a digital platform or otherwise. On the contrary, for leases lasting 60 days or more, it is required to submit a Lease Information Statement to AADE, with its characterization as long-term.

B. Service provision and categorization

The nature of the services provided determines the classification of the lease. When the owner is limited to providing only bed linen, the property remains in the short-term rental category. If, however, additional services such as cleaning, meals or transport are provided, the property is considered tourist accommodation and falls under a different tax regime. In this case, the owner is required to start business and comply with the provisions applicable to tourism businesses.

C. Characterization of the lease

Even in case of premature departure of the lessee from a long-term lease, its characterization remains long-term. This is because the rating is based on the agreed length of the tenancy and not the actual length of stay.

D. Obligations of owners

Property owners who wish to rent them out on a short-term basis, through platforms or otherwise, are required to register in the AADE Short-Term Property Registry and obtain a Property Registry Number (PRN). AMA is required for every post on digital platforms and for submitting short-term residence declarations. In addition, for each lease, the submission of a Short-Term Residence Declaration through the AADE platform is required.

Income from two qualifying properties is taxed as real estate income. If three or more properties are rented out, the income is taxed as a business activity, which may give rise to additional obligations, such as being subject to 13% VAT.

E. Property management

The management of the property can be undertaken by the owner himself, the usufructuary, sublessees or third parties who have undertaken the management. The administrator is responsible for the registration of the property in the Registry, obtaining the AMA and submitting the relevant declarations. If the property is let in parts (eg, separate rooms), a separate AMA is required for each part.

The administrator is responsible for the accuracy of the data entered in the Register. In the event of an audit, he is required to provide all the necessary documents documenting the management. The possibility to correct or amend information is available until the finalization of the Registry, which must be completed by February 28 of the following year.

St. Prohibition of new licenses for certain areas

It is noteworthy that from January 1 to December 31, 2025, a ban on issuing new permits for short-term rentals for properties located in the 1st, 2nd and 3rd Municipal Districts of the Municipality of Athens has come into force. The affected areas include Plaka, Kolonaki, Koukaki, Syntagma, Monastiraki, Exarchia, Ilisia, Neapoli, Pagrati and others. Landlords in these areas will not be able to register new properties on the Short Stay Property Register.

See here the detailed guide of AADE.