Airbnb Greece short-term rentals have surged by 47% over five years, calling for new measures to free up homes currently listed on Airbnb and promote long-term rentals, which in turn will help young couples find housing.
- Short-term rental statistics show a sharp rise over the past five years.
- In 2019, there were 653,000 available beds nationwide. By 2023, this number has grown to 962,000.
- Crete, the Cyclades, and the Ionian Islands boast the highest number of short-term rental beds this summer.
- Both supply and prices have increased significantly since 2019.
- The average rental price rose from €122 in 2019 to €191 in 2023, a 57% increase.
- The Dodecanese region, especially Rhodes, saw a notable 67% jump in rental beds over five years.
- Tourism operators expect arrivals to continue until mid-November.
Government’s Approach
The Finance Ministry is evaluating different scenarios, focusing on maintaining Airbnb’s benefits while treating multiple property owners as entrepreneurs. The proposed solutions will include tax incentives for long-term rentals. Direct restrictions on short-term rentals have been deemed excessive. Instead, measures like limiting operation days and capping permits per area are being reconsidered. The Spatial Bill for Tourism, which restricts Airbnb activities near hotels, is also seen as too limiting.
Proposed Tax Changes
The government is considering a “two-tier” tax system:
- Long-term rentals: Potential tax deductions.
- Short-term rentals: Higher tax rates, possibly up to 22%, the minimum business tax rate.
Currently, rental income is taxed progressively. Many property owners declare annual income below €12,000 to benefit from a 15% rate. The new plan suggests:
- Increasing the minimum rate for short-term rentals to 22%.
- Maintaining or lowering the 15% rate for long-term rentals.
- Offering tax deductions for long-term leases.
Additional Measures
Further actions may include:
- Allowing only one or two short-term rental properties per VAT number for individuals. Owners of more than two properties will be treated as business operators, subject to VAT, insurance contributions, and business tax.
- Limiting lease duration to 90 days per year (60 days for islands with less than 10,000 residents). Exceeding this limit will be allowed if total rental income stays below €12,000 annually.
Enforcement and Compliance
The Independent Authority for Public Revenue (AADE) will use advanced AI systems to audit tax returns from short-term rental owners. These systems will match declared rental days and income with platform data. Audits will start post-2023 tax filings, including comparisons of bank account movements and other financial transactions.
Rising Trends in Short-Term Rentals
The data shows a significant growth in short-term rentals since 2019. Key points include:
- Crete, Cyclades, and Ionian Islands lead in the number of rental beds.
- A 57% increase in average rental prices from €122 in 2019 to €191 in 2023.
- The Dodecanese, especially Rhodes, reported a 67% rise in rental beds over five years, with expected tourist arrivals continuing until mid-November.
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