Government to take new measures to tackle housing crisis

08:03 27/5/2024 - Πηγή: iEfimerida

In a strategic move to alleviate the housing crisis, Greece’s conservative government is considering new regulations targeting short-term rental services like Airbnb.

The proposed measures aim to bolster the long-term rental housing supply and curb escalating rent prices, offering a much-needed respite for families seeking affordable accommodations.

The economic leadership is reviewing suggestions from

administrative officials and market entities, with definitive decisions slated for announcement by fall. The primary focus is on tax-related adjustments, particularly incentives encouraging property owners to favour long-term leases over short-term rental platforms.

The proliferation of short-term rentals has markedly diminished the availability of properties for stable, long-term leasing, significantly driving up both rental and housing market prices.

Approximately 700,000 homes stand vacant, as declared by their owners, further constricting the housing supply. An estimated release of 15-20 percent of these homes for rent could notably impact housing availability and the broader real estate market.

The effectiveness of the new measures will be closely monitored against the backdrop of this year’s tourism season, officials have said. The past year, they say, showed a substantial increase in taxable income from short-term rentals, with reported earnings exceeding 720 million euros, a marked rise from 530 million euros in 2022.

The regulations effective from January 1 include:

Operating three or more properties for short-term rental will be classified as a business activity, obligating owners to pay insurance contributions, business fees, and VAT starting from the first property. The minimum income to be declared in 2025 will be based on the standard income for freelancers.

A transient occupancy tax of 0.5% is introduced, irrespective of the number of properties owned.

A “climate crisis resilience fee” of 1.5 euros per day per room or apartment is established from March to October, and 0.50 euros for November to February. For single-family homes over 80 square meters, the fee is 10 euros per day. This fee is charged to the occupant.

Penalties for non-registration in the Short-Term Rental Property Registry have been intensified. A standalone administrative fine, equal to 50% of the gross income for the tax year of the violation, with a minimum of 5,000 euros, is imposed. Repeat non-compliance within a year results in a doubled fine. For failing to submit or inaccurately submitting a Short-Term Stay Declaration, a fine equal to twice the rent listed on the digital platform is enforced. A 100 euro fine is set for late declarations.

Short-term rental is defined as leasing or subleasing a property for less than 60 days without additional services beyond accommodation and bedding. Renting a property for up to 150 days a year is permissible, provided each lease does not exceed 60 days.

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