Greece Increases Climate Resilience Fee, Announces New Rules for Short-Term Rentals

Greek Tourism Minister Olga Kefalogianni (far right) speaking presenting the measures for Greek tourism during the press conference. Photo source: Tourism Ministry

Greek Tourism Minister Olga Kefalogianni provided details on Monday regarding the increase in the climate resilience fee imposed on hotels and other accommodations, as well as new rules for the short-term rental market.

The new measures, which also include a new levy for cruise passengers, were recently announced by Prime Minister Kyriakos Mitsotakis and are said to demonstrate the Greek government’s commitment to fostering a sustainable tourism model and addressing issues related to overtourism and the housing crisis.

During a press conference, Kefalogianni emphasized the purpose of the climate resilience fee.

“The revenue generated will be allocated to the prevention and restoration of natural disasters and to enhancing infrastructure that supports the country’s tourism sector,” she stated.

Climate Resilience Fee increases

The Climate Resilience Fee for April to October will rise significantly, with increases ranging from 0.50 to 5.00 euros. Additionally, the low-fee period, previously set for November to February, has now been extended to include March.

More specifically, the measures for hotels foresee:

– For 1- and 2-star hotels and rooms to let, the fee rises from 1.50 to 2.00 euros, a 0.50 euro increase

– For 3-star hotels, the fee rises from 3.00 to 5.00 euros, 2.00 euro increase

– For 4-star hotels, the fee raises from 7.00 to 10.00 euros, a 3.00 euro increase

– For 5-star hotels and villas (accommodation units over 80sq.m), the fee increases from 10.00 to 15.00 euros, a 5.00 euro hike

It should be noted that for the winter season, the fee for hotels will remain unchanged, maintaining last year’s values. More specifically, for the April-October period, the fee will be 3.00 euros for 3-star hotels, 7.00 euros for 4-star hotels, and 10.00 euros for 5-star hotels. For 1- and 2-star hotels, the fee will be 1.50 euros. Additionally, for the November-March period, the fee will be 1.50 euros for 3-star hotels, 3.00 euros for 4-star hotels, and 4.00 euros for 5-star accommodations. For 1- and 2-star hotels, it will be 0.50 euros.

For short-term rentals, the fee will increase for both winter and summer seasons. In winter, it will rise from 0.50 to 2.00 euros, while in summer it will increase from 1.50 to 8.00 euros.

New rules for short-term rentals

Aiming to address the housing crisis, Minister Kefalogianni also announced the ban of new short-term rental agreements for at least a year in three central Athens‘ districts (including the areas of Syntagma Square, Omonoia Square, Exarchia, Neos Kosmos, Pagrati, Kerameikos, Metaxourgeio), aiming to preserve the character of the neighborhoods.

According to the minister, the ban may be extended to other high-demand areas of the capital.

Additionally, property owners who convert short-term rentals to long-term leases or reopen previously closed apartments for rent will be eligible for a three-year tax exemption on rental income.

When the measure was first announced, Airbnb voiced concerns over the new short-term rental policy but stated its willingness to collaborate with the Greek government to address the challenges at hand.