Draft Law Aiming to Tax Airbnb-style Rentals in Greece

A bill to be voted on in Greek parliament this week is set to impose a 15-45 percent tax on annual income earned from the short-term lease of property for tourism accommodation purposes.

Within a greater draft law aimed at covering a number of areas, the provision applies to all individuals making profits from renting out their properties within the sharing economy and will apply starting January 1, 2017 as follows: 15 percent for gains of up to 12,000 euros, 35 percent for incomes between 12,001 and 35,000 euros, and 45 percent for those exceeding 35,000 euros, provided the properties are rented out furnished without additional services other than bed linen.

For those offering additional services on the side, the gains are assessed as income from business activity and taxed at 22 percent for earnings up to 20,000 euros, 29 percent for income between 20,001 and 30,000 euros, 37 percent for revenue between 30,001 and 40,000 euros, and 45 percent for profits exceeding 40,000 euros.

The Greek government is expected to collect a total of 48 million euros in 2018 if a clause in its agreement with its international lenders is enforced foreseeing the taxation of short-term rentals.