Changes in taxation of short-term rentals in Greece

Taxation of short-term rentals in Greece, as conducted through platforms like Airbnb, is now shaped by stricter regulations based on specific criteria. At the same time, property owners face new obligations and restrictions for 2025, especially in high-demand areas such as central Athens.

Key taxation criteria

1. Rental Duration:
   • Rentals lasting up to 59 days are classified as short-term.
   • Rentals exceeding 60 days are considered long-term and taxed differently.
   • If a long-term lease is terminated prematurely, it is still considered long-term based on the original agreement.
2. Services Provided:
   • To qualify as a short-term rental, the property must be furnished without additional services beyond providing linens.
   • If services like breakfast, cleaning, or transportation are offered, the property is considered a tourist accommodation and is subject to different tax and administrative treatment.
3. Number of Properties:
   • For up to two properties, income is taxed as real estate income.
   • If three or more properties are rented out, the income is classified as business activity, requiring the owner to register as a business and potentially be subject to a 13% VAT rate.
   • In cases of co-ownership, income categorization is determined individually for each person. For instance, if an individual rents two properties with full ownership and a third property with 50% ownership, their income is considered business activity. Conversely, the co-owner with no other rental properties is taxed as a private individual.

Ban on new short-term rentals in Central Athens

For 2025, issuing a Property Registry Number (PRN) has been banned for the first three distrcits in the Municipality of Athens. This means that:

• No new accommodations can be added in areas such as Plaka, Kolonaki, Koukaki, Syntagma, Monastiraki, Exarchia, Ilisia, Neapoli, Mets, Neos Kosmos, Agios Artemios, Pangrati, Votanikos, Metaxourgeio, Gazi, Petralona, and Rouf.
• Existing leases from private owners to managers cannot be renewed.

Owner obligations

1. Short-Term Rental Registry:
   • Mandatory registration in the Independent Authority for Public Revenue (IAPR) Registry and obtaining a PRN.
   • The PRN must be included in every listing on platforms.
2. Short-Term Rental Declaration:
   • Each rental must be declared on the relevant IAPR platform.
3. Tax Treatment:
   • In cases of co-ownership, taxation is determined individually for each owner.
   • For example, if one co-owner has three properties, their income is taxed as business activity, while another co-owner with one property is taxed as a private individual.

Examples – Clarifications

• If an initial short-term rental of 51 days is extended by 13 days, a second short-term rental is created.
• If two rooms in an apartment are rented (with separate PRNs), the owner is considered to have two properties.

To learn about all tax implications for short-term rentals in Greece, book your spot now at the Short Stay Conference 2025.