Greek Tax Authorities to Crack Down on Undeclared Income from Short-Term Rentals

Greek tax authorities are set to intensify their scrutiny of undeclared income from short-term rental properties, following evidence that many property owners are evading taxes.

According to a recent report by Greek national broadcaster ERT, there is a significant discrepancy between reservations listed on short-term rental platforms and the income reported from these properties. In response, the Independent Authority for Public Revenue (AADE) will begin verifying this information using its new digital systems, which incorporate Artificial Intelligence.

AADE will primarily examine data from Greece’s Taxisnet system, which includes information on properties and last year’s income as reported in 2024 tax returns. The review will also consider payments from bank accounts and credit card transactions.

Key areas of focus for AADE will include:

– Comparison of registered properties: AADE will cross-check properties listed as short-term rentals with those reported by platforms like Airbnb, Booking.com, and Vrbo. These platforms have agreed to provide AADE with income data for Greek property owners for 2023.

– Verification of multi-property owners: Individuals with more than three properties listed on short-term rental platforms must now establish a legal entity to manage them. Approximately 7,500 individuals in Greece are affected by this new law. These property owners will be taxed as professionals in the coming year, with a minimum income threshold applied for tax purposes.

Audit of hotel rentals

Hotels renting rooms through popular platforms will also undergo audits. AADE will verify whether their reported income aligns with the prices and room availability listed on these platforms.