Hoteliers Get Discount On New Property Tax

At a recent press conference, the president of the Hellenic Federation of Hoteliers, Yiannis Retsos, and the president of the Hellenic Chamber of Hotels, Yiorgos Tsakiris, strongly objected to the new property tax and called for equal treatment of all business entities in Greece that are engaged in export activity.

The 35 percent of communal areas of hotels and lodges will be exempt from the new property tax, Economy Minister Evangelos Venizelos said recently.

In early September the Economy Ministry introduced a new property tax to the Greek society in an attempt to reach fiscal goals set by the European Union and the International Monetary Fund. The Greek Parliament passed the relevant legislation on 27 September.

However, according to hoteliers, it remains unclear what areas of hotels are considered communal and therefore excluded.

Properties used exclusively for agriculture, livestock farming, industrial production and manufacturing are exempted. In addition, the Greek Church will be obliged to pay tax only for property used for commercial purposes.

Reports said that Greek hotel owners are planning a legal challenge against the new tax as the bill does not take into account that most Greek hotels are closed in the winter season.

The new annual property tax will be collected through electricity bills over the next three years.