Hosting Airbnb guests in Greece sounds like a profitable business idea that will certainly guarantee you a hefty passive income. However, first and foremost, you must answer this question: “Is Airbnb legal in Greece?” – Let’s keep things short and let us get to the point: Airbnb is legal in Greece!  But, before stepping into the short-term rental market in Greece, you should learn more about the ordinances that regulate the holiday lets in the country.

Greek Law: What is a short-term rental of immovable property?

According to Greek law, a short-term rental is when you lease a property via digital platforms for a specific duration that is shorter than a year, mainly providing furnished accommodations with bed linens. This includes apartments, houses, and dwellings of separate structures, as well as rooms within apartments or single-family dwellings.

Here are some of the existing STR laws & regulations in Greece:

Airbnb Regulations in Greece

Under Greek regulations, article 111 of Law 4446/2016 is the fundamental rule which sets out the terms and conditions for short-term rental properties:

• Before listing a dwelling on digital platforms, you must register the property in the “Register of Short-Term Property Lets” kept by the Independent Authority for Public Revenue (IAPR).
• Once the property is registered, you will obtain a registration number (“AMA”) which must be visibly displayed when listing the rental on the digital platforms and in any advertising tool.
• It’s required to submit a Short-Term Rental (STR) Declaration by the 20th of each month following the check-out of the guest in the electronic application. You can submit the declaration here.
  • A separate administrative fine of €100 is imposed if the STR Declaration is submitted late.
  • In the case of non-submission or inaccurate submission of a STR Declaration, you will be imposed with a fine double the rent, as it appears on the digital platform on the day on which the check is conducted. 
• If you entrust the management of the STR to a third party, you must submit a Declaration of Particulars of Tenancies of Immovable Property.

Please note that if you have more than one STRP, you must register each rental property separately in the Register of Short-Term Property Lets.

If any of the conditions mentioned in the STR Greek law aren’t met, property owners or sublessors will be imposed with an administrative fine of €5,000. They will be required to take the necessary measures to comply within 15 calendar days. 

Is there a limit on total Airbnb night stays in Greece?

While the STR legal framework doesn’t currently set daily limits or other restrictions on short-term rentals, the law allows the government to introduce limits on total nights for specific geographical areas:

• The letting of each listing should not exceed 90 days per calendar year;
• For islands with less than 10,000 inhabitants, the property may not exceed 60 days per calendar year 

However, it’s possible to exceed the limit duration in the case that the total income of the owner or sublessor from all the rental properties doesn’t go beyond €12,000 in the relevant tax year.

Income Taxes & VAT for STR in Greece

Taxes can become quite a complex and tricky topic to talk about, but it’s important for property owners to familiarise themselves with it as well as to keep up to date with their obligations. 

The rental income obtained from a STR property of the sharing economy is considered income from real estate and the same is exempt from VAT. Thus, you, as a property manager, must pay a percentage of tax on your rental income in Greece to the tax authority. However, if you supply additional services aside from bed linen, then you will be required to apply VAT and pay it to Greek tax authorities.

The Greek tax year runs from 1st January to 31st  December and the portal to declare income taxes can be found here.

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