Tourism: Basic arrangements in real estate taxation, Airbnb – The main axes of the bill

tourismo

On two axes move the interventions of the government on real estate and tourism, as described in the tax bill that was given for consultation at the beginning of the week.

The main objective is, on the one hand, the protection of the tourist product through the increase in revenue, part of which will be directed to the Municipalities for the improvement of infrastructure, on the other hand, the increase in housing supply, which is hoped – if achieved – to bring a reduction in rent prices, which are close to historical highs them, at a time when household disposable income is shrinking due to accuracy.

The package includes the introduction of a resilience fee on tourist accommodation, stricter restrictions on short-term rentals and the imposition of a cruise tax.

As part of the interventions to increase the housing supply, there are tax incentives and the Ministry of National Economy and Finance hope that a significant part of the apartments that remain closed today will be able to return to the market, as well as that the same will happen with establishing incentives for converting short-term leases into long-term ones. Also severe restrictions on the expansion of Airbnb in saturated areas are imposed for one year, with violators being asked to pay heavy fines, up to 40,000 euros.

These actions will be accompanied by a series of other interventions in the same direction, such as “Renovate – Rent”.

Details of the measures of the new bill for tourism

1. End of Endurance The resilience fee is for tourism businesses and provides imposition of a daily charge on accommodation, per room or apartment, and aims to support initiatives that will address the challenges of the climate crisis. The calculation of the fee differs by accommodation category and time period.

During the months of April to October:

Hotels

1-2 stars: 2 euros

3 stars: 5 euros

4 stars: 10 euros

5 stars: 15 euros

– Furnished rooms and apartments for rent: 2 euros

– Properties available through short-term rental: 8 euros

For detached houses over 80 m2, the fee is 15 euros.

– Self-catering accommodation – tourist furnished villas (villas): 15 euros

– Self-catering accommodation – tourist furnished accommodation:

8 euros for an area under 80 sq.m

15 euros for a surface of more than 80 sq.m.

During the months of November to March

Hotels

1-2 stars: 0.5 euros

3 stars: 1.5 euros

4 stars: 3 euros

5 stars: 4 euros

– Furnished rooms and apartments for rent: 0.5 euros

– Short-term rental properties: 2 euros

For detached houses over 80 m2, the fee is 4 euros.

– Self-catering villas and tourist furnished homes:

Villas: 4 euros

Furnished tourist homes: 2 euros for surfaces under 80 m2, 4 euros for larger ones.

Revenues from the resilience fee will be used for prevention and recovery actions from natural disasters, climate change adaptation projects and improvement of tourism infrastructure.

2. End of Cruise. In the logic of supporting local infrastructure and managing tourist flows, a cruise fee is established, which is mainly aimed at foreign visitors. The fee is imposed per cruise ship passenger disembarking in a Greek port and ranges from 1 to 20 euros, depending on the port and the tourist season. The revenue from the cruise fee will end up in the port municipalities, the Ministry of Shipping and Island Policy, and the Ministry of Tourism for projects to improve the port facilities and tourist infrastructure.

3. Restrictions on Short-Term Leases. To control the growing demand for short-term rentals and protect the availability of long-term housing, the bill placesrestrictions on areas with a high density of tourist properties. From January 1, 2025 until December 31, 2025, the registration of new properties for short-term rental in the 1st, 2nd and 3rd Municipal Communities of the Municipality of Athens is suspended. Properties in these areas will not be able to be registered in the Register of Short-Term Accommodation Properties, while non-compliance with the measure entails high fines:

  • Fine equal to 50% of the income from the short-term rental, with a minimum amount of 20,000 euros.
  • In case of recurrence, the fine amounts to 100% of the income from the short-term rental, with a minimum amount of 40,000 euros.

4. Tax Incentives for Long Term Leasing. In order to increase the supply of long-term rental housing, the bill provides tax incentives for property owners who will offer long-term rentals. Specifically, owners who make their properties available for long-term rental will benefit from an income tax exemption for three years. This applies to residences:

  • With a surface of up to 120 sq.m.
  • For which a long-term lease contract of at least three years will be concluded between September 8, 2024 and December 31, 2025.
  • These residences were either declared vacant for the years 2022, 2023, and 2024, or were available through short-term rentals during the same years.

The new regulations constitute an integrated strategy aimed at promoting sustainable development in tourism and ensuring affordable housing for permanent residents. At the same time, the State is attempting to increase tax revenues from growing tourist flows, channeling them into actions that improve infrastructure and strengthen economic resilience.

Source: ertnews.gr