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Government mulls new measures for short-term property leasing

Featured Government mulls new measures for short-term property leasing

A new legislative framework governing short-term Airbnb leases is expected to be put up for consultation by the government in the near term.

The relevant Ministries of Finance and Tourism had set up an "appointment" for discussions about the Airbnb phenomenon after the end of the summer tourist season and now the decision time is near.

The government's aim is to control the Airbnb phenomenon, mainly due to the impact of the explosive increase in rents on the property market.

3 + 1 measures for Airbnb
Reportedly, the package of measures expected to be taken for Airbnb will have three main axes:

1) Strict tax compliance

About 20,000 properties available through Airbnb and 10,000 homes posted on Booking do not have a Real Estate Number (AMA) and are virtually undeclared. The Ministry of Finance has given clear instructions to AADE to identify all these properties, which will be excluded from the platform in the next phase.

 

2) Airbnb Security Requirements - Properties Acquire "Identity"

Greece, in line with international standards, will adopt a specific regulation with security standards for real estate available through short-term rental platforms (Airbnb, Homeaway, Booking). Owners will be required to submit planning permits as well as property security specifications (emergency exits, fire protection, etc.). It is recalled that Greeks have even posted tents on the Airbnb platform.

3) Property insurance coverage

To date, the platforms (Airbnb, Booking, Homeaway) acts as an intermediary, with "debt" insurance. The same is true of any injuries to visitors who subsequently seek compensation from the owner. This "gap" is expected to be rectified by special provisions that will provide - even mandatory - insurance coverage for both guests and property.

Airbnb: Thoughts for a stay fee
According to a report in today's newspaper "Ta Nea", the government's financial staff is weighing on the prospect of imposing a residence tax on the properties available via Airbnb.

This is a "hike" introduced for hotels in January 2018 and has generated reactions from the hoteliers industry. The hoteliers argued that the extra tax would weaken the competitiveness of Greece's hotels, not only with other countries, but also with Airbnb's - almost uncontrolled, at the time - properties.

It is recalled that according to real estate market experts, thousands of homes will leave Airbnb platforms this fall, returning to long-term leases.

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