Greece Aiming to Regulate Hospitality Market with New Airbnb Rules

Deputy Finance Minister Harry Theoharis. Photo source: Prodexpo conference.

The Greek government is aiming to regulate the short-term rental (STR) market and protect long-term rentals with a set of new rules scheduled to go into effect on January 1, 2024.

The amended legal framework, which comes after repeated demands by hoteliers for fair market conditions, is not meant to shake things up but instead to create balance, said Deputy Finance Minister Harry Theoharis during the 24^th Prodexpo held in Athens this week.

“We will not impose harsh limits on short-term rentals. We will bring balance to the market, but not disrupt it,” he said.

With this goal in mind, Theoharis said that among other amendments to the law, the 90-day limit on the number of days properties can leased as Airbnbs has been removed.

Panel discussing STRs at Prodexpo. Photo source: Prodexpo conference.

The minister went on to reiterate that the new measures are meant to tackle tax evasion and lost revenues and to ensure a fair playing field for STR operators and the hotel sector.

Theoharis underlined that the government does not want to stifle the development of the STR segment of the tourism economy, which provides a supplementary income for thousands of property owners.

Taking this into consideration when drawing up the revisions, Theoharis said the new regulations set a limit of two properties for natural persons, which accounts for 70 percent of STR activity, with those have three or more properties listed on digital home-sharing platforms to be considered business activity and required to operate and be taxed as such.

It should be noted that according to a study presented at Prodexpo this week, the STR segment has helped cover the increasing demand for tourism accommodation in areas with limited hotel availability.