News interventions for Airbnbs the government is considering in order to increase the supply of houses and reduce rentsoffering a way out to thousands of families looking for housing at an affordable rental price.

On the table of the financial staff are proposals from service agents and market players in this direction, while any decisions are expected to be finalized in the autumn. It is mainly for fiscal arrangements, including incentives for landlords to make their homes available for long-term rental rather than offering them on short-term rental platforms.

The explosive growth of housing exploitation through Airbnb-like platforms has significantly reduced the availability of homes for stable long-term rental and has contributed significantly to the increase in rents and house purchase prices. The problem is intensified by the fact thati approximately 700,000 homes are declared vacant by their owners, thus further limiting supply. It is estimated that if 15-20% of these homes were offered for rent the impact would be particularly significant on the front of the supply of houses to rent and overall the whole property market.

Particularly critical for the range of decisions will be the image that will emerge from the this year’s tourist season where the new regulatory framework that came into force in January will operate. However, in 2023 there was a significant rise in taxable income from short-term rental properties as rents declared in the Register exceeded €720 million from €530 million in 2022.

In terms of the regulations that came into force from January 1 of this year, the following are foreseen:

– The exploitation of three or more properties will be considered a business activity, with the result that those who obtain income from short-term rental will pay the corresponding insurance contributions, the property tax and the VAT from the first property. Also, the minimum income they will have to declare to the tax office in 2025 will be calculated based on the self-employed imputed income.

– The introduction of a 0.5% accommodation fee for non-residents regardless of the number of properties.

– The establishment of a “resilience to the climate crisis” fee of 1.5 euros per daily use and per room or apartment for the period from March to October, while for the months of November to February the fee is set at 0.50 euros. If the properties are single-family houses over eighty square meters, the fee is 10 euros.

– The tightening of penalties for not registering in the Short-Term Rental Property Registry. In particular, an independent administrative fine is established per year, equal to 50% of the gross revenue of the tax year in which the violation is committed, which cannot be less than 5,000 euros. In the event of non-compliance with the conditions again within one year of the issuance of the act imposing the fine, the fine is increased to double the amount initially imposed. Failure to submit or submission of an inaccurate Short-Term Residence Declaration is subject to a fine equal to twice the rent as it appears on the digital platform. An independent administrative fine of 100 euros is provided for an overdue Short-Term Residence Declaration.

– A short-term lease is defined as the lease or sublease of a property for a specific period of time, less than 60 days, and as long as no other services are provided except for accommodation and the provision of bed linen. Thus, it will be allowed, for example, to rent a property for 100 or 150 days during the year, provided that each separate rental does not exceed 60 days.