Airbnb rentals to be taxed 15-45%
- Written by E.Tsiliopoulos
Greek Parliament has published details of the imposed taxes on annual income earned from the short-term lease of property for tourism accommodation purposes, mainly Airbnb.
The new legislation imposes 15% tax being charged from the first euro and will climb up to 45% for higher income earners. This makes Greece one of the first countries to regulate short-term home rentals.
Tax rates for incomes earned from Airbnb in Greece, as of January 1st 2018 are:
15% for annual incomes up to 12,000 euros
35% for annual income 12,001-35,000 euros
45% for annual income over 35,0001 euros
In cases were more services are offered they will be taxed as income from entrepreneurship:
22% tax for income up to 20,000 euros
29% tax for income 20,001 – 30,000 euros
37% tax for income 30,001-40,000 euros
45% tax for income over 40,001 euros
The law to tax and regulate the Airbnb-style market was passed through Greek Parliament in December 2016, however it was not implemented in time and will now come into effect in January 2018.
Greek law limits it to four homes per owner and requires that the accommodation facility be larger than 9 m2, with natural lighting, ventilation, heating, fully furnished and rented out without the provision of any service except for bed linen.
Homes in Greece can be leased out for a total of 90 days in popular tourist areas and for 50 days in smaller destinations.
The Greek Finance Ministry aims to raise over 48 million euros in 2018 from Airbnb and similar business revenues.