Greece’s Short-term Rental Players Discuss Best Practices

The short term-rental regulation discussion panel. Photo source: Delphi Economic Forum.

For the first time in Greece, short-term rental operators sat down at the same table with the country’s Independent Authority for Public Revenue (AADE) to discuss best practices and market conditions during the Delphi Economic Forum 2023 last month.

Addressing a panel discussion at the annual event attended by heads of state, EU commissioners, and policy-makers, AADE President George Pitsilis said a Memorandum of Understanding (MoU) between Greece’s national revenue body with short-term rental operators Airbnb, Booking.com and VRBO (Expedia Group) for compliance to local tax laws was paying off.

“The results are proving that the legal framework introduced is working successfully. Legislation and memorandums of cooperation we have signed with the platforms have enabled us to identify those who believe they can generate income from short-term rentals without declaring it,” said Pitsilis.

He went on to underline the importance of the cooperation which he said was with time becoming more efficient and effective and helping AADE develop its digital tools.

“We are continuing our inspections in order to protect the public interest and ensure healthy competition,” he said.

AADE President George Pitsilis. Photo source: Delphi Economic Forum.

Representatives of the three short-term rental platforms participating in the panel discussion agreed that Greece’s Property Registry Number (AMA) had produced good results.

According to Pitsilis, the MoU had helped AADE identify more than 70,000 property managers/owners who had not declared real incomes. As a result, they were asked to comply thus generating 103 million euros in potentially lost revenues.

Speaking on the same panel, Country Manager Italy and South-East Europe at Airbnb, Giacomo Trovato said the MoU had set the example of good practices for the whole of Europe, adding that Greece’s short-term residence registry had developed a clear framework of operation covering the obligations of property owners, ensuring transparency and supporting healthy competition.

“I am pleased that our cooperation with the Greek authorities will continue and hopefully expand,” Trovato said, adding that “as we move towards clearer, consistent and harmonized short-term rental (STR) rules across the EU, Greece has already successfully demonstrated how streamlined sharing data and joint efforts with platforms is the way to go. We are committed to continue working with the government and local authorities in Greece and other European countries,” he said.

AADE President George Pitsilis, Expedia Group SVP Global Government & Corporate Affairs Jean-Philippe Monod de Froideville, Booking.com Head of Public Affairs Inge Janssen and Country Manager Italy and Airbnb South-East Europe at Giacomo Trovato. Photo source: Delphi Economic Forum.

Representing VRBO, Jean-Philippe Monod de Froideville, SVP Global Government & Corporate Affairs Expedia Group said the MoU was a very important public-private initiative which “guarantees transparency in the short-term rental sector and allows property owners and managers to operate in accordance with Greek law”.

He went on to add that it also allows users to take full advantage of the tourism sector’s recovery by working with the government to assess the contribution of short-term vacation rentals to the economy.

“We look forward to continuing to work closely with all stakeholders to promote sustainable growth in the industry and ensure the appropriate regulatory framework for short-term rentals,” he said.

Lastly, Inge Janssen, head of public affairs EMEA at Booking.com, also expressed her satisfaction with the MoU signed with AADE which ensures transparency in the short-term rental market in Greece. “Booking.com sees travel as a ‘force for good’ and online travel platforms have a critical role to play in helping the tourism sector make the dual transition to a greener, more digital and more resilient future in the post-Covid era,” she said.

Earlier this year, Greece’s property owners and STR hosts reiterated their call to the government to re-examine proposed legislation aimed at regulating Airbnb-style accommodation and to include incentives for long-terms rentals during the 5^th ShortStay Conference 2023 held in Athens.