{"id":22239,"date":"2024-06-25T11:41:20","date_gmt":"2024-06-25T08:41:20","guid":{"rendered":"https:\/\/bnbnews.gr\/uncategorized\/22239\/stama-appealed-to-the-council-of-state-on-the-business-tax\/"},"modified":"2024-09-07T16:58:51","modified_gmt":"2024-09-07T13:58:51","slug":"stama-appealed-to-the-council-of-state-on-the-business-tax","status":"publish","type":"post","link":"https:\/\/bnbnews.gr\/en\/str-insights\/22239\/stama-appealed-to-the-council-of-state-on-the-business-tax\/","title":{"rendered":"Stama appeal to the Council of State"},"content":{"rendered":"

Stama appealed to the Council of State regarding the way in which business rates were imposed on short-term rental companies.<\/p>\n

According to the Association’s announcement, the appeal was made against Circular no. E2024\/9.4.2024 of the Independent Public Revenue Authority (AADE) entitled “Provision of clarifications regarding the tax treatment of short-term rentals in the context of the sharing economy after the amendments introduced by the provisions of Law 5073\/2023”. It classified all short-term leases as branches – business premises of short-term leasing traders with effect from fiscal year 2024.<\/p>\n

The consequence of this Circular is that in addition to the standard VAT, visitors tax and climate change tax per night are also due. These taxes equate for around \u20ac600 of additional business tax and are applicable by law on all properties operating on a short-term lease.<\/p>\n

The challenged Circular concerns the taxation of legal entities and natural persons active in the short-term rental of real estate in accordance with Article 111 of Law No. 4446\/2016 which aims to interpret Articles 27-29 of Law No. 5073\/2023. Paragraph 11 of the “Hellenic Tax Administration of the Hellenic Revenue Service” no. E.2141\/16.7.2019 (“Clarifications on issues relating to short-term leases in the context of the sharing economy”) stipulates: “The “Real Estate” leased or subleased under the sharing economy under the provisions of Article 111 of Law 4446\/2016 by a legal person or legal entity, without the provision of services other than the provision of bedding, shall NOT be counted as a branch of the aforementioned persons”.<\/p>\n

\"\"<\/a><\/h3>\n

The reasons that led Stama to the Council of State<\/h2>\n

On 7 December 2023, the tax bill entitled “Measures to curb tax evasion and other urgent provisions” was passed and the above designation was not changed. Then, in the clarifying circular of the AADE in April, it was stated that each property is counted as a substitute. Stama considers it unconstitutional through a circular, without legislation, when there was one a few months ago, to impose onerous and surprise taxes “out of the blue”.<\/p>\n

It notes that “we fail to understand how a property in which the provision of any service other than the provision of bed linen is prohibited can be classified as a branch. By the same token, Real Estate Investment Trusts (REITs) under sec. 2778\/1999 that invest in, acquire and operate real estate, as well as all kinds of companies that acquire by lease or purchase, the right to operate real estate should declare these properties as their branches.<\/p>\n

The imposition of a business tax (600\u20ac) per accommodation means that our companies will be on the brink of financial ruin as it will be impossible for them to meet such large obligations. If a company manages 50 properties on behalf of owners, it is required to pay \u20ac30,000\u00a0 for the business tax alone.<\/p>\n

We are protecting the interests of the small owners who have entrusted us with the management of their properties and will see their income, which we fight every day to secure.”<\/p>\n

The president of Stama Nassos Gavalas said on the issue of the appeal to the Council of State:<\/p>\n

“The short-term rental sector in Greece contributes more than \u20ac5 billion to the country’s GDP and multiple revenues to local business communities. It was developed during the crisis, without subsidies or aid and exclusively with private capital. All of us who operate in this industry make daily efforts to grow our businesses, satisfy our guests, be consistent with our employees and our tax obligations.<\/p>\n

Now a ‘liberal’ government has targeted our industry. It is threatening it with extinction, unemployment and layoffs, imposing unaffordable, unfair and unpredictable taxes. Stama’s duty through its institutional role is to defend the interests of its members and our market in general. It will continue to do so at all costs but also with faith in the Greek justice system”.<\/span><\/p>\n

Stama invites short term rental property managers who need further information to contact: 210 5785266 & 6996611911 info@stamagreece.gr<\/p>\n","protected":false},"excerpt":{"rendered":"

Stama appealed to the Council of State regarding the way in which business rates were imposed on short-term rental companies. According to the Association’s announcement, the appeal was made against Circular no. E2024\/9.4.2024 of the Independent Public Revenue Authority (AADE) entitled “Provision of clarifications regarding the tax treatment of short-term rentals in the context of<\/p>\n","protected":false},"author":4,"featured_media":21477,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[515,506],"tags":[630],"class_list":["post-22239","post","type-post","status-publish","format-standard","has-post-thumbnail","category-str-insights","category-news","tag-stama-en"],"_bunyad_layout_template":null,"_bunyad_layout_spacious":null,"_bunyad_sponsor_name":null,"_bunyad_sponsor_logo":null,"_bunyad_sponsor_url":null,"_bunyad_sub_title":null,"_yoast_wpseo_metadesc":"Stama appealed to the Council of State regarding the way in which business rates were imposed on short-term rental companies.","_yoast_wpseo_focuskw":"Stama Council of 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