Greece’s New Airbnb Rules to Take Effect in the New Year, Says Minister

Greek National Economy and Finance Minister Kostis Hatzidakis speaking during the 24th Prodexpo conference in Athens.

Greek National Economy and Finance Minister Kostis Hatzidakis confirmed this week that the government’s new Airbnb regulations will go into effect at the beginning of the new year.

Addressing the 24^th Prodexpo conference which took place in Athens his week, Hatzidakis said the new rules are aimed at tackling tax evasion and lost revenues and ensuring a fair playing field in tourism accommodation and “balanced market conditions”.

The new rules, which apply to homeowners renting out their properties as short-term tourist accommodation, include taxation and higher penalties for violations.

Hatzidakis said the government was seeking to find a ‘soft’ solution that would regulate short-stay rentals. The goal is, he said, to address unfair competition and tensions in the hotel industry as well as address the domino effects on the real estate market and on rents without stifling the growth of short-term rentals for thousands of owners who make a living off rentals.

The new rules will go into effect on January 1, 2024, said Hadzidakis.

“We’ve opted for a ‘soft’ solution. We’re imposing VAT on cases where there are three or more properties [being leased]. Having one or two is additional income, three and above looks like a business activity,” he said.

Referring to Greece’s property market, the minister said foreign investments in real estate had increased by 39 percent in the first half of the year compared to 2022 on the back of an upward trend a year ago, when real estate investments by foreigners came to 2.1 billion euros, or a 68 percent rise over 2021.