Proposed Law Could Allow Greek Municipalities to Increase Stayover Duty for Hotels and Airbnbs

A provision in a bill submitted to Greek Parliament by the Ministry of the Interior will allow municipalities to raise a duty levied on hotels and short-term rental accommodations.

Known in Greek as the “τέλος διαμονής παρεπιδημούντων”, the “stayover duty” – currently set at 0.5 percent on nightly rentals of hotel rooms, rooms to let, and Airbnb accommodations – is collected in favor of municipalities.

According to Article 30 of the proposed law: “A stayover duty of 0.5 percent is levied on the rental price for beds, rental rooms, apartments, or spaces in organized campsites, as well as on the price of beds in hotel businesses and various types of tourist accommodations. This duty also applies to the rental price for all categories of short-term rentals when the stay lasts less than six months.”

The proposed law goes on to add that municipal councils will have the authority to raise the duty to 0.75 percent. They will also be able to apply differentiated rates based on residential areas, as defined by their decision, or by the type and category of accommodation.

Regarding short-term rentals, the stayover duty will apply to business-operated short-term leases (individuals managing three or more properties), as well as private hosts.

Moreover, it is noted that the stayover duty is charged to guests and submitted by owners (hoteliers, short-term rental businesses or hosts, etc) to the municipality where the property is located, in accordance with the VAT payment deadline.

If voted, the provision will take effect three months after its passage and publication in the Government Gazette, the official journal of the Greek government.

Additionally, the draft bill provides for the extension of the municipal duty to other types of businesses, should local councils decide. These businesses include gift shops, local arts and crafts stores, rental services for small boats, sea bikes, windsurfing equipment, beach and water sports venues, ski and mountain hiking facilities, and rental services for cars, motorcycles, bicycles, and electric vehicles.