Around 2,000 short-term rental properties in the heart of Athens and 1,400 in Thessaloniki could face closure following the approval by Parliament of a new bill from the Ministry of Tourism. The legislation requires short-term rental spaces to be registered as “primary use residences.”
Industry Concerns Over New Regulation
This requirement has sparked intense reactions within the industry, as it is estimated to affect approximately 20% of properties within the Municipality of Athens and up to 40% in the greater Thessaloniki area.
“Punitive” regulation
The STAMA (Association of Short-Term Rental Companies) has expressed significant concerns about the negative consequences of this measure on the sector. Many properties, originally designated as industrial or commercial spaces and later repurposed for residential use after 2011, will now be considered illegal despite substantial private investment for renovations.
During a meeting with journalists in Thessaloniki, STAMA Director Stathis Karopoulos, alongside members Stamatis Papoutsis, Dimitris Missas, and Paschalis Karagiannis, argued that the regulation is both unjust and punitive, aiming to shrink the sector. They emphasized that short-term rentals are not to blame for the housing shortage and called for the legalization of properties that underwent a change in use since 2011.
Favoring hotels
Short-term rental property owners claim that the bill primarily benefits hotels, particularly lower-category establishments, which struggle to compete with the technological advancements and adaptability of the short-term rental market.
A revitalizing force
Short-term rentals have breathed new life into many vacant urban buildings. If these spaces cease to function as accommodations, they are unlikely to be repurposed for long-term rentals.
Legal actions and industry footprint
It’s worth noting that STAMA has already appealed to the Council of State regarding the imposition of a business levy per accommodation and has not ruled out further legal action.
Currently, STAMA has 260 members managing 7,500 properties nationwide. Approximately 30% of these properties are handled by property managers, with the remaining 70% managed directly by their owners. Most property managers are Greek, overseeing the assets of Greek owners, with a smaller percentage representing Israeli, Turkish, Chinese, and Lebanese clients.
Standards for All
While STAMA does not oppose the bill’s other provisions, it calls for liability insurance requirements to also apply to hotels and rented rooms. The association’s members argue that the legislation unfairly targets short-term rentals, while urging the state to crack down on the shadow economy in tourist areas.
The short-term rental sector boasts a 92% tax compliance rate, a testament to the strict regulatory oversight of its activities.