Airbnb: The new AADE guide with criteria, services and taxation

The duration is the main criterion for when a rental is characterized as short-term and treated for tax purposes as “Airbnb” or considered long-term and classified as tourist accommodation.

According to the new detailed guide issued by the Independent Public Revenue Authority (AADE), leases lasting up to 59 days are considered short-term, while from 60 days or more they are classified as long-term, with different tax treatment.

Furthermore, the nature of the services provided determines whether the property remains in the short-term rental category. If the owner is limited to the provision of bedding, the property remains under “Airbnb” status. However, if additional services are provided, such as cleaning, meals or other services, then the property is considered tourist accommodation.

In this case, it is required to start a business and comply with the additional obligations provided by the legislation.

The Airbnb Guide

In more detail, from the full text of the AADE guide, the following emerges:

The duration is the main criterion that determines whether a lease is short-term or long-term. In short-term rentals, the maximum is 59 days, provided the property is furnished and no additional services are provided. The same applies regardless of whether the lease is done through a digital platform or not. On the other hand, leases lasting 60 days or more are characterized as long-term, requiring the submission of a Property Lease Information Statement to the AADE.

If a lessee leaves before the intended end of a long-term lease (ie prematurely) the characterization of the lease remains long-term. That is, even if the tenant leaves before the 59 days, the initial rating does not change, as it is based on the agreed duration and not the length of stay.

To remain a property in Airbnb short-term rental status, it must not provide any services beyond bedding. If services such as breakfast, cleaning or transportation are offered, the property is considered tourist accommodation and is subject to a different tax and administrative regime. In this case, the owner is obliged to start a business activity and comply with the provisions that apply to tourist businesses.

Στις υποχρεώσεις των ιδιοκτητών που εκμισθώνουν ακίνητα βραχυχρόνια, περιλαμβάνεται και η εγγραφή στο Μητρώο Ακινήτων Βραχυχρόνιας Διαμονής της ΑΑΔΕ και η απόκτηση Αριθμού Μητρώου Ακινήτου (ΑΜΑ). The AMA must be indicated on every post on the digital platforms and on every means of promotion of the property. In addition, for each lease, a Short-Term Residence Declaration must be submitted, while the income is taxed according to the number of properties that are rented out.

For income from up to two properties that meet the conditions, the tax is calculated as income from real estate. Conversely, if three or more properties are rented out, the income is taxed as a business activity. In this case, the owner is obliged to start a business activity and possibly be subject to 13% VAT.

Short-term Rental Property Manager, can be the owner himself, the beneficiary of the property, a sublessee with a contract that gives him the right to sublease or a third natural or legal person who has undertaken the management. In the latter case, special categories are included, such as guardians of inheritance, executors of wills and legal representatives. The manager is responsible for the registration of the property in the AADE Short-term Residence Property Registry, obtaining a Property Registry Number (AMA) and submitting short-term residence declarations.

These elements must appear on all platforms or other means of displaying the property. If the property is let out in sections (eg, separate rooms), the manager must obtain a separate AMA for each section. It is important that, in case the administrator is a third party, the submission of a statement by the owner granting the right to manage, stating the Property Identification Number (ATAK) is required. The correctness of the data entered by the manager in the register is critical, as in the event of an audit, he is responsible for providing all legalizing documents documenting the management. Also, the administrator has the possibility to correct errors or modify data until the finalization of the register, which must take place until February 28 of the following year.

Prohibition

It is worth noting that from January 1, 2025 to December 31, 2025 a prohibition has been placed on new Airbnb licenses for properties located in the 1st, 2nd and 3rd Municipal Districts of the Municipality of Athens as a result of which there is no possibility to register in Register of Short-Term Accommodation Properties.

Particularly on the list of areas of Athens that will not be issued a Real Estate Registration Number (AMA) are Plaka, Kolonaki, Koukaki, Syntagma, Monastiraki, Exarchia, Ilisia, Neapoli, Mets, Neos Kosmos, Agios Artemios, Pagrati, Botanikos, Metaxourgeio, Gazi, Petralona and Ruf.