Airbnb, Booking.com and VRBO Update Deal with Greek Tax Authorities

As part of efforts to ensure transparency and address tax evasion, Greece’s Independent Authority for Public Revenue (AADE) updated its protocol of cooperation with online property sharing platforms Airbnb, Booking.com and VRBO (Expedia) on the sidelines of the 87th Thessaloniki International Fair (TIF) this week.

Representatives from the three short-term rental operators signed revised memoranda of understanding (MoU) with AADE Governor Giorgos Pitsilis.

The move, which AADE said is part of a continuous “constructive dialogue”, came days after Greek Prime Minister Kyriakos Mitsotakis announced that Airbnb-style rentals income would be taxed as of January 2024 applicable to operators of three or more properties.

AADE Governor Giorgos Pitsilis (second from left) with representatives from the three online property sharing platforms Airbnb, Booking.com and VRBO (Expedia). Photo source: AADE

Among others, under the revised agreements, short-term rental (STR) companies will have to:

– include a syntax validation field in the Property Registration Numbers (PRNs) field;
– provide the name and surname of the IBAN account holder to help identify and audit managers – this will include the total annual rentals (nights) per listing;
– provide data on property managers who failed to comply and correct their PRNs; and
– provide relevant and requested data on a mandatory basis.

Additionally, properties will be classified as STR (short-term rentals) and non-STR listings, according to their commercial model.

“We are constantly pursuing collaborative solutions with market stakeholders in efforts to fight tax evasion. Signing the updated MoUs with the three leading short-term rental platforms further enhances the effectiveness of our policy, which has become an international benchmark and has led to a ten-fold increase of declared income deriving from STRs,” said Pitsilis.

In 2021, the companies had agreed to comply with Greek law and register properties up for rent on AADE’s short-term rental registry. A year earlier, Airbnb had notified real estate owners in Greece renting out their properties short term that 2018-2019 information would be sent to Greek tax authorities for taxation purposes.