It is expected that heavy fines will be dealt to anyone who “takes out” new properties for short-term rental in the 1st, 2nd and 3rd Municipal Districts of the Municipality of Athens in 2025.
Heavy fines
Article 26 of the Tax Bill, which has been proposed and put out for consultation until Tuesday November 19, 2024 at 21:00, states the following:
“… From January 1, 2025 to December 31, 2025, registration in the Short-Term Residence Property Registry is not allowed for properties located in the 1st, 2nd and 3rd Municipal Districts of the Municipality of Athens. An owner, holder, usufructuary, subletter or third party manager who carries out a short-term lease of a property referred to in the first paragraph, regardless of whether the short-term lease is drawn up through a digital platform or otherwise, shall be subject to an administrative fine equal to fifty percent (50%) of the income obtained from the short-term lease from 1 January 2025 until the audit, which shall not be less than twenty thousand euros (€20,000).
If, after the imposition of the sanction of the previous paragraph, a new violation is detected within the same tax year, a fine equal to the amount of the rent collected, which shall not be less than forty thousand euros (€40,000), shall be imposed.
The fine constitutes public revenue, which is imposed and collected by the A.A.D.E. By the joint decision of par. 8, the suspension referred to in the first paragraph may be extended until 31 December 2026”.
The Governor of the A.A.D.E. has declared that all details for implementation and operation of the Short-Term Residence Property Register have been determined. As have the Short-Term Residence Declaration submission details, the auditing process, the bodies for imposing sanctions, as well as all other necessary details for the successful implementation of the provision.
Resilience Tax
In the same bill that introduces the heavy fines, there is also an article on the Climate Crisis Resilience Fee (CRF), which is imposed on all short-term rental accommodations.
For short-term rentals the CRF means an additional €8 tax imposed per daily use and per room or apartment between April and October. If the properties available through short-term rental are single-family homes over eighty square metres (80 sq m), a resilience fee of €15 is imposed instead.
During the months of November to March, the resilience fee is reduced to €2 on short-term rentals and to €4 on single-family 80sq m rentals.
The climate crisis resilience fee is paid by the resident who used the room or apartment i.e the guest. It is payable after the guest checks-in to the accommodation and before they check-out from it. The CRF will be shown as a special or extra item and this will provide the required proof of collection of the climate resilience fee, by businesses and individuals. The fee is then paid to the Tax Administration in the monthly tax declarations.
Declarations can be submitted up until the last day of the following month from the issuance of each special item. The special item which is proof of collection of the climate resilience fee is not subject to Value Added Tax. The above fee is not imposed in the case of free provision of accommodation services by the above liable parties.
Following the recommendation by the Governor of the Independent Authority of Public Revenue, the Minister of National Economy and Finance has determined all necessary details for the implementation of the CRF and all actions pertaining to; the process for the declaration of payment of the climate resilience fee, the method of determining the persons liable to pay the fee, the time and procedure for its imposition and payment, the content, procedure and method of issuing the special item i.e obtaining proof of its collection.
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