Greece brings in new tourism measures in bid to tackle housing crisis
Europe’s tourism boom has prompted hotspots such as Spain, Lisbon, Berlin and Florence to announce restrictions
Lefteris Papadimas, The Independent
17 September 2024
Greece has said it would give a three-year tax break to homeowners who convert their short-term rentals to long ones.
The move makes the tourism-favourite the latest European country to clamp down on holiday lets to tackle a housing shortage.
Europe’s short-term rental boom has already prompted tourism hotspots such as Spain’s Canary Islands, Lisbon, Berlin and Florence to announce restrictions on such lets, which many local people blame for pricing permanent residents out of the market.
As part of a plan to tackle housing shortages, Prime Minister Kyriakos Mitsotakis said last week that Greece also planned to increase a tax on short-term rentals and ban new licences in central Athens.
Residents of the capital responded positively to the plans.
“It’s a huge issue because it’s changing the urban landscape. Where there are traditional buildings, now there’s a modern one next to them, designed to be an Airbnb,” says 58-years old Athens resident Penny Platanitou.
Valentina Reino, head of public policy for Airbnb in Southern Europe, said on Friday that her company was ready to work with the Greek government on “targeted and proportionate solutions”.
Low wages, high inflation, property shortages and the growth in short-term holiday rentals have fuelled a housing crisis in Greece still recuperating from a nearly decade-long debt crisis. Low-income earners, young couples and students have been hit particularly hard.
Greece has spent 2.2 billion euros so far to subsidise low-interest loans to help young people onto the property ladder and will earmark an additional 2 billion euros to extend the plan to couples up to 50 years old.
“Greece, indeed, has joined that team of countries in recent years where the housing shortage is pushing families unbearably,” Sofia Zacharaki, Greece’s minister for social cohesion and family affairs, told a press conference to present the plan….
The following article from a year ago explains the restrictions to be imposed by the new law—HIC-HLRN.
Short-term rental in Greece: Changes and restrictions are coming
The government is considering imposing conditions on the operation of short-term rentals in order to give space to the long-term rental market
Οικονομικός Ταχυδρόμος
10 July 2023
Short-term rental in Greece: Changes and restrictions are coming
Since the beginning of 2023discussion of the imposition of measures on the short-term rental market has been on the table, which, while it has brought revenue to the state, has created a problem with the availability and prices of properties for rent and sale, especially in urban areas., which, while it has brought revenue to the state, has created a problem with the availability and prices of properties for rent and sale, especially in urban areas.
According to information, the discussion will start from scratch, however, it seems that the government is oriented towards imposing restrictions on the number of properties that an owner can rent out, as well as setting a maximum time limit for which the property can be used on the platform.
The measures that are on the table
There will be a different treatment for companies or managers that rent out many properties, while changes will also be made to taxation.
In particular, with regard to real estate managers and large companies, what is being considered is for them to become legal entities and receive a special operating mark. In these cases VAT and accommodation tax will be imposed as in hotels.
Limitations on the number of homes that can be rented out by a single VAT number.
Formation of time limits regarding the lease of the houses for short-term lease in cooperation with the municipalities.
Limits on the number of homes that can be rented out by each VAT number.
VAT imposition. Today Airbnb owners are not required to pay VAT. From 2025, however, this will change at the European level and VAT will apply to short-term rentals. For property owners, the VAT will be withheld by the platform and paid to the Greek State, so that the owners do not have to open books.
The short-term rental law
It is worth noting that in 2016 a law was passed that included a series of “tools” to limit short-term rentals, however a ministerial decision was never issued to make it concrete.
Specifically, the law states: By joint decision of the Ministers of Economy and Development, Finance and Tourism, for reasons related to the protection of the residence, geographical areas may be defined, where restrictions will apply to the availability of real estate for short-term rental as follows:
a. Do not allow the short-term rental of more than two properties per tax number of beneficiary income.
b. The lease of each property should not exceed 90 days per calendar year and for islands with less than 10,000 inhabitants 60 days per calendar year.
Exceeding the duration is allowed, as long as the total income of the lessor or sublessor, from all the properties available for lease or sublease, does not exceed 12,000 euros per year.
Photo: View of Attica. Source: EUROKINISSI.
Watch video: Greece targets short-term rentals in bid to boost housing (Reuters)
| Themes |
| • Globalization, negative impacts • Low income • National • Public policies • Tenants |
