The ongoing legal and regulatory saga surrounding short-term property rentals, particularly those listed on platforms like Airbnb, continues to unfold in Greece. The government has inserted a provision into a draft customs code bill currently under consultation, aiming to tax such rental activities by reintroducing a business fee and defining what constitutes a “business premise.” This move comes ahead of a final ruling from the Plenary Session of the Council of State (StE), which is expected in the coming months.
The issue began in 2023 when the Independent Authority for Public Revenue (AADE) issued a circular imposing a €600 fee per property on individuals renting out accommodations through short-term leases, treating each listing as a separate business branch. The Hellenic Short-Term Rental Association (STAMA) immediately challenged this decision, arguing that the circular lacked sufficient legislative basis and misapplied the concept of a “business premise,” since an apartment used for rentals does not function as a traditional commercial entity with staff or administration.
In response, the Council of State temporarily suspended the implementation of the circular, ruling that AADE had overstepped its authority and failed to publish the regulation in the Government Gazette, thus depriving it of legal force. The court also found that equating every rental unit to a business branch was legally flawed and led to disproportionate taxation.
To ensure the measure remains in place regardless of the Council of State’s final decision, the government is pushing for a legislative amendment within the Customs Code Bill. Article 127 defines the management of two or more properties for short-term rentals as a business activity, subjecting it to an annual fee of €500 for individuals who do not officially register their business. For corporate entities, fees of approximately €600 per property are planned, pending ministerial decisions.
The article includes provisions for data cross-referencing between platforms (like Airbnb), AADE, and the Land Registry to ensure full enforcement. This effectively safeguards the policy even if the Council of State eventually invalidates the original circular.
Government sources claim the fee is not primarily about revenue generation but rather market regulation, aiming to balance the short-term rental industry with housing needs. Meanwhile, STAMA reaffirms its intent to continue legal action, citing its initial victory in the suspension of the circular and considering further challenges against the new legislative proposal if passed without exceptions or proportional adjustments.