Short-term rentals have proven to be extremely lucrative in Greece. However, from January 2024, there will be new rules in place. Here’s what to look out for.
A two-bedroom villa for sale in Kymi, Central Greece. Click on the image to see more.
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Short term rentals are extremely popular in Greece
In Greece, a short-term rental (STR) is a property that is rented out to an individual for a period of 60 days or less. For many, owning an STR has proven to be a lucrative means to make money. According to a report presented by Professor George Doukidis, in 2022, STRs accounted for more than 1.65% of Greece’s GDP. Furthermore, STRs booked through online marketplaces comprised of 21.5% of all overnight stays by tourists in Greece.
Monastiraki Square at night.
While the popularity of short-term rentals are widespread throughout the country, there are hotspots. According to Kathimerini, the commercial triangle of Athens secured a monthly rental income of €3,200 during this year’s third quarter (July – September). The commercial triangle encompasses the squares of Omonoia, Syntagma and Monastiraki. It buzzes with shoppers, businesses and eateries. The income gained from short-term rentals is three times higher than that of long-term rentals in the same area.
Why renting out your home can be beneficial
Fortunately, even since Brexit, there is nothing prevent overseas buyers from renting out their property in Greece. Only now, British citizens can only stay in Greece for 90 days out of every 180. However, for those wanting to stay longer, there are great options, such as the Golden Visa and the digital nomad visa. Having said that, renting out your property to keen holidaymakers is a great way to make a profit while you are not there.
New rules on short-term rentals from January 2024
As successful as the short-term rental market is in Greece, the government has been under pressure for a while to tighten the rules around it. So, the Greek National Economy and Finance Minister, Kostis Hatzidakis announced new rules that are aimed to tackle tax evasion and limit lost revenue.
The rule changes have been framed as a “soft solution” that are intended not to stifle those who are dependent on rental income.
From January 1st 2024, if you rent out one or two properties, then you will have to pay an accommodation fee (€1.50 per booking). Meanwhile, if you have three or more properties will be taxed as a business activity. You will have to pay 13% VAT and taxes and fees as if you were a hotelier. Furthermore, stays of 60 days or more cannot be booked through online sites like Airbnb, as these count as long-term rentals.
Other need-to-knows on renting in Greece
A four-bedroom townhouse complete with a guesthouse. Click on the picture to see more.
To rent out a property in Greece on a short-term basis, you must obtain an EOT licence from the Greek Tourist Board. An EOT licence is intended to establish the safety and suitability of your property. The EOT licence regulates room size, pool safety (if you have one) and more.
Plus, you will have to register your property at the tax office and pay rental tax at the following rates:
- Up to a rental amount of €12,000: 15 percent
- Between €12,000 and €35,000: 35 percent
- More than €35,000: 45 percent
Sources: Legal – Βραχυχρόνιες μισθώσεις | Airbnb | Vacation Rentals Greece | Villas Greece (host.gr.com), News from Greece and the World | eKathimerini.com
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