The Greek government has taken a significant step to regulate the booming short-term rental market – especially platforms such as Airbnb, Booking.com or Vrbo. With a new bill, it is now clarified that each individual property used for short-term rental is taxed as a “business establishment” – with corresponding financial consequences.

From the tax year 2024, this regulation will come into force as soon as it is passed by parliament. For landlords and companies working with holiday apartments in Greece, this means: an annual flat-rate operating costs allowance (Greek: “Τέλος Επιτηδεύματος”) of €600 per property – regardless of whether they are natural or legal persons.

According to Article 248 of the new draft law on the National Customs Code, which is currently in public consultation, any property used or sublet for short-term rentals will be considered a separate business establishment.

👉 As a result, each individual property is subject to the annual operating cost levy of €600. A reduced rate of €300 applies to non-profit organizations or social enterprises.

This measure is part of a broader fiscal approach to control the rapidly growing Airbnb market and aims to create tax transparency, fair competition with traditional hoteliers and urban balance in the rental housing market.

In recent years, Greece has experienced a real boom in the area of short-term rentals. Especially in cities like Athens, Thessaloniki and on popular islands like Santorini, Crete or Mykonos, many owners have listed their properties on platforms like Airbnb.

This had the following consequences:

• A drastic decline in available long-term rental apartments for locals

• Price increases on the rental market

• Tax intransparency among private landlords

• Complaints from traditional hotel businesses about distortion of competition

The new regulation is therefore an attempt to create a balance between tourist demand and housing for locals, as well as to restore tax justice.

This new flat rate affects all owners or operators who rent out properties for short-term stays – typically less than 30 days, as is common with holiday apartments.

Among those affected are:

• Private individuals who rent out apartments or houses via Airbnb

• Companies or agencies with multiple properties

• Communities of heirs or investment companies with real estate holdings

• Owners on islands, tourist centers and cities alike

The flat rate of €600 per year per property is due in addition to other tax obligations, e.g.:

• Income tax on rental income

• Solidarity surcharge (if applicable)

• Value added tax (for certain thresholds)

• City or municipal taxes depending on the region

For large portfolios, this could mean several thousand euros per year, just through the new “Τέλος Επιτηδεύματος”.

The measure is meeting with mixed reactions from the public.

🔹 Supporters (especially from the hotel industry and urban planning) see it as a necessary corrective to market regulation.

🔹 Critics – especially smaller owners – fear, however, that the new tax burden is an additional pressure that particularly affects families or people with only one second home.

Another problem is that the regulation also applies if a property is only rented out for a few weeks a year – which could be particularly critical for seasonal providers.

The new regulation on the flat-rate operating costs allowance for short-term rentals in Greece is a turning point for all Airbnb landlords and investors. Anyone who uses real estate in Greece for tourist rentals must prepare for higher fixed costs from 2024.

For existing landlords, it is therefore urgently advisable to check the profitability of their properties and, if necessary, seek tax advice.