Renting a house through Airbnb becomes lawful – Conditions

12 Mar 2017, Tax, by Diomidis Batakis, Accountant

 

The law 4446/2016 defines for the first time the terms and conditions for the short-term property leasing through digital platforms (Airbnb or others) and is effective from 1st of February 2017.

Conditions

  • The leaser or sub-leaser must be a person, registered to the “Registry of short-term Property Leasing” * which is held at the General Secretariat of Public Revenues of the Ministry of Finance. The registration number at the Registry of short-term Property Leasing is obligatory to accompany the post on digital platforms as well as in any other promotion media.
  • The registration of more than two (2) properties per income beneficiary’s VAT is not allowed.
  • The property has a surface of at least nine (9) sq.m. and features natural lighting, ventilation and heating.
  • The property has all the legitimate construction licenses or is preserved according to the provisions of Law 3843/2010 (A’62) or is subject to the provisions of Article 24 of Law 4014/2011.
  • The leasing of each property cannot exceed ninety (90) days per calendar year. In case of islands with less than ten thousands (10.000) residents, the leasing cannot exceed sixty (60) days per calendar year.
  • Exceed of the term of ninety (90) days, is allowed if the total income of the leaser or sub-leaser, from all the properties he disposes for lease or sublease, does not exceed the twelve thousands (12.000) euro in the relevant tax year according to the provisions of the sharing economy.
  • The properties are leased furnished without providing any service except the supply bed linen.

 

Penalties and fines

Failure to comply with the first two conditions enforces separate administrative fine of five thousand (5.000) euro.Since the establishment of the violation, the leaser or sub-leaser is obliged within fifteen (15) calendar days to take the necessary compliance actions. In case there is failure to comply with the first two conditions for the second time within the same fiscal year from the issuance of the fine, this fine is enforced at twice and in the case of each subsequent same offense, four times the originally imposed fine.

In case of non fulfillment of other requirements is applied the legislation as appropriate.

Controls may be carried out by joint teams of the Ministry of Finance and Tourism.

The Ministry of Finance can demand from any digital platform, which operates in the sharing economy, any information that is essential for the identification of the leaser or sub-leaser.

                   

Taxation and VAT

The income acquired by the short-term leasing is considered income from real estate and is taxed separately in accordance to the table below:

 

Income from property (euro)

Factor %

0-12.000

15%

12.001-35.000

35%

35.001-

45%

 

The leaser or sub-leaser is obliged to submit Statement of Informative Data of Property Leasing.

Short-term leases are not subject to residence tax, such as accommodation of Law 4276/2014(main hotel accommodations, furnished rooms or apartments for rent).

Property leasing qualifying short-term leasing is exempted from VAT.

 

Insurance

The leasing or subleasing of a property under the Law for the short-term leasing does not create insurance liability for the leaser or sub-leaser.

Leases that do not meet the terms and conditions established by Law 4446/2016, are legal, only if they concern touristic accommodations of any operating shape, equipped with special signal of operation from EOT.

 

* The application for the Registry of short-term Property Leasing is still not accessible as it is in the design and implementation process.

 

 

 

 

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