Yesterday, the AADE updated its Guide on the rules for short-term rentals like Airbnb with a new guide-tool that has 60 questions and answers.
The guide has new additions concerning property owners, managers, sole traders, and companies that use online platforms to rent out properties, as well as people who own more than two properties, offer extra services, need to start a branch or business because of a third-party AMA, and so on. It also provides information on the Climate Crisis Resilience Fee (TAK), the Temporary Residence Fee, VAT, booking cancellations, fines for late declarations, etc.
According to the instructions, the business tax for those who declare an activity with a KAD code related to short-term leases is not imposed annually as a fixed amount, but is calculated proportionally based on the duration of the activity. If the start or cessation of activity is declared during the year, the taxpayer is only charged for the months of operation.
FULL GUIDE HERE
Frequently asked questions and answers about short-term property rentals
Q What is defined as a short-term rental?
A From January 1, 2024, onwards, a short-term rental is defined as the rental or
subletting of a property for a period of up to 59 days, provided that the properties are let furnished without the provision of any services other than bed linen. Therefore, from 1.1.2024, the classification of a lease as short-term or not is independent of whether or not the lease is concluded via a digital platform.
It should be clarified that the 59-day limit refers to the duration of each lease and not to the total number of days that a property may be leased on a short-term basis during the year.
E Which leases do not fall under the definition of Short-Term Lease?
A From January 1, 2024, the following do not fall under the definition of Short-Term Lease:
a) The lease of real estate with a duration of 60 days or more. In this case, it is now considered a long-term lease and there is an obligation to submit a Real Estate Lease Information Statement in accordance with the provisions of POL 1162/2018 (B’3579).
b) The lease of real estate with the provision of additional services beyond bedding. In this case, the property is considered tourist accommodation and business activity must be registered with the AADE.
E When I enter into short-term leases outside digital platforms, am I required to register with the AADE’s Short-Term Accommodation Register?
A Yes, because starting on January 1, 2024, leases up to 59 days that are signed outside of digital platforms are considered Short-Term Leases and are therefore subject to the obligation to register in the Short-Term Accommodation Property Register and obtain a Property Registration Number (hereinafter referred to as ARA) as well as to submit a Short-Term Accommodation Declaration.
E What applies when, during the lease, it is agreed that the property will be re-leased to the same lessee?
A If, during the lease, it is agreed to re-lease the property
to the same lessee, the duration of the re-lease is examined separately to determine whether the lease is classified as short-term or not. For example, in the case of a short-term lease from June 10, 2024, to July 30, 2024 (departure date 31.7.2024), i.e. a duration of 51 days, it is agreed that the lessee will stay until 12.8.2024 (departure date 13.8.2024), resulting in a total duration of 64 days, is considered to be a second lease from July 31, 2024, to August 12, 2024, with a duration of 13 days, which is also short-term.
E Does the classification of a lease that is not short-term change in the event of early departure of the lessee within the first 59 days?
A No, in this case the classification of the lease as long-term remains unchanged.
E Can a property be available for both short-term and long-term leases?
A Yes, and each lease will be treated according to its duration.
In other words, if the duration is 60 days or more, a Real Estate Lease Information Declaration must be submitted, while if it is up to 59 days, a Short-Term Stay Declaration must be submitted.
E What is defined as real estate in a Short-Term Lease?
A The definition of real estate is crucial in Short-Term Leases for two reasons:
a) every Short-Term Lease property must have a Real Estate Registration Number (AMA)
b) specifically for natural persons, the number of properties they have available for short-term rental determines how the income earned from such rental is taxed.
More specifically, according to Article 111 of Law 4446/2016, a property under a Short-Term Lease is defined as: a. an apartment,
b. a detached house, excluding detached houses that have been classified as such due to the abolition of horizontal property,
c. any other form of building with structural and functional independence,
d. d. rooms within apartments or detached houses.
