Ex­tra tax per night’s stay on Airbnb-style prop­erty rent

Kathimerini English - - Focus - PROKOPIS HATZINIKOLAOU

Greece’s first reg­u­la­tory frame­work on prop­erty ren­tals via web­sites such as Airbnb, HomeAway, FlipKey and HouseTrip will in­tro­duce a 5 per­cent tax per night and im­pose a fine of 50,000 eu­ros on own­ers who do not en­ter their de­tails in the rel­e­vant reg­is­ter. Own­ers’ rev­enues will also be taxed at the rates used for rental in­comes (be­tween 15 and 45 per­cent), de­pend­ing on the in­come level.

The Fi­nance Min­istry’s plan pro­vides for ev­ery prop­erty owner in Greece who ad­ver­tises their prop­erty on such web­sites to en­ter a spe­cial reg­is­ter and re­ceive a unique num­ber as a means of iden­ti­fi­ca­tion to be used in ev­ery ad they up­load on those plat­forms. Once there is an in­ter­est in rent­ing the prop­erty, the com­pany that runs the web­site will have to send all trans­ac­tion data to the min­istry, fol­low­ing an agree­ment to that end with the Greek state.

Own­ers must also ad­here to spe­cific terms aimed at pre­serv­ing healthy com­pe­ti­tion and at se­cur­ing a min­i­mum stan­dard of qual­ity of the prop­er­ties on lease. A limit will also be set on the num­ber of prop­er­ties that each owner can lease out short-term.

The 5 per­cent charge per night will be payable to the Greek state by the bro­ker of the trans­ac­tion, typ­i­cally the on­line plat­form. Own­ers with an­nual rev­enues of up to 12,000 eu­ros will then have to pay in­come tax of 15 per­cent, with the rate ris­ing ac­cord­ing to tak­ings.

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