New developments in the short-term rental market are brought about by the bill of the Ministry of National Economy and Finance, which has been put out for public consultation and includes a provision for the reinstatement of the business tax.
Specifically, a provision included in the draft bill “National Customs Code and other provisions” it is now explicitly stated that any property leased or subleased for short-term use is considered a branch and is subject to a separate business tax.
The circular in question, which imposed the relevant charges, was challenged in the Council of State by STAMA Greece and five of its member management companies. In its decision, the Second Section of the Council of State ruled that the AADE circular (E.2024/2024) as unfounded and void, arguing that it was an act of a regulatory nature, which had not been published in the Government Gazette but had merely been posted on the Internet, thereby violating the principle of legal certainty.
Despite the pending case before the Plenary Session of the Council of State, the Ministry of Finance has decided to proceed immediately with legislation which, if finally adopted, will apply retroactively from the 2024 tax year. This is a development with significant economic and practical consequences for the short-term rental sector, as it paves the way for the imposition of a business tax per property, which translates into multiple burdens for owners and managers.
The only exceptions are facilities operating for up to 30 days, spaces on different floors of the same building, and tourist accommodation in traditional buildings with a single license.
