Greece’s 2025 Budget Aims for Millions from Hotel, Airbnb, and Cruise Charges

The Greek government’s new charges on the hospitality and tourism sectors are projected to generate millions for state coffers, according to the draft budget plan for 2025 submitted to parliament on Monday.

The draft budget plan includes an increase in the climate resilience fee imposed on hotels and other accommodations, along with new charges and regulations for the short-term rental market, as well as a new levy for cruise passengers.

From the increased climate resilience fee alone, the government anticipates annual revenue of 203 million euros, while it expects the cruise passenger levy to generate 52 million euros in yearly income.

Hotels – Climate resilience fee

The climate resilience fee for the period from April to October will see a significant rise, with increases ranging from 0.50 euros to 5.00 euros.

Specifically, the new measures for hotels are as follows:

– for 1- and 2-star hotels and rooms to let, the fee will increase from 1.50 euros to 2.00 euros, reflecting a 0.50 euros increase.
– for 3-star hotels, the fee will rise from 3.00 euros to 5.00 euros, a 2.00 euros increase.
– for 4-star hotels, the fee will increase from 7.00 euros to 10.00 euros, a 3.00 euros increase.
– for 5-star hotels and villas (accommodation units over 80 sq. m.), the fee will increase from 10.00 euros to 15.00 euros, a 5.00 euros increase.

It is important to note that the climate resilience fee for hotels during the winter season (low-fee period: November-March) will remain unchanged, maintaining last year’s rates.

Short-Term Rentals – Climate resilience fee

Conversely, for short-term rentals, the climate resilience fee will increase for both winter and summer seasons. During the winter (low-fee period: November-March), the fee will rise from 0.50 euros to 2.00 euros, while in summer (high-fee period: April to October), it will increase from 1.50 euros to 8.00 euros.

More charges for short-term rentals

In addition to the increases in the climate crisis resilience fee for short-term rentals, Greece’s draft budget plan for 2025 outlines further charges on short-term rental accommodations as part of measures to address the country’s housing issue. Specifically regarding short-term rentals, the draft budget plan indicates that these charges aim to regulate the market and mitigate the “secondary negative consequences” on long-term rental prices.

The new charges will include the imposition of a 13 percent Value Added Tax (VAT) and a “stayover duty” (known in Greek as the “τέλος διαμονής παρεπιδημούντων”) on short-term rentals similar to those offered on platforms like Airbnb. According to the draft budget plan, these charges will apply to all legal entities, such as ownership companies, as well as to individuals renting three or more properties in this market.

New rule for short-term rentals

Furthermore, Greece’s draft budget plan for 2025 includes a rule that prohibits new short-term rental apartments from entering the market in downtown Athens next year, in response to the significant number of properties already listed on online platforms.

Incentive for property owners to switch to long-term leasing

To increase the availability of properties for long-term leasing, the draft budget plan proposes a three-year exemption from income tax on rental income for owners of properties up to 120 sq. m. that are rented out on a long-term basis after being either vacant or on short-term leases for at least three years.

Cruise passenger levy income included in draft budget

The recently announced cruise passenger levy is also included in Greece’s draft budget plan for 2025.

Announced in September, the new levy will amount to 20 euros per passenger disembarking at the ports of Santorini and Mykonos, and 5 euros per passenger at the rest of the country’s ports, from June to September. The levy will be reduced by 50 percent in the months at the end of the season and by 80 percent during the winter months.

According to the draft budget plan, the levy will be imposed per cruise passenger to strengthen the ports, enhance the infrastructure of the respective municipalities that receive a high number of tourists, and improve the overall tourism product of the country. The annual income from the cruise passenger levy is estimated at 52 million euros.

The revenue will be distributed as follows: one-third will go to the municipalities where the passengers disembark, one-third will be allocated to the Maritime and Island Policy Ministry for necessary port works, and one-third will be directed to the budget of the Tourism Ministry.

Additionally, based on a new law approved in 2024, 50 percent of government income from port or port facilities concessions will be dedicated to projects aimed at updating and upgrading Greek ports, further enhancing the country’s tourism product and improving the quality of life for island residents.

Golden Visa investment requirements rise

Greece’s draft budget plan for 2025 also includes the announced changes to the criteria for the Golden Visa program, which grants five-year residency rights to third country nationals who purchase property in the country.

As previously announced, the changes to the program establish different minimum investment requirements for applicants, depending on the areas of interest. Specifically, to obtain property in popular areas such as Athens, Thessaloniki, Mykonos, Santorini, and other islands with a population exceeding 3,100 residents, third country nationals will need to invest a minimum of 800,000 euros, up from 500,000 euros. For properties in other parts of Greece, the minimum investment threshold will rise to 400,000 euros from 250,000 euros.

These changes to the Golden Visa program are included in the draft budget plan as part of measures to address the country’s housing issue.