Greek Law Allows Municipalities to Raise Stayover Duty for Hotels and Short-term Rentals

In a significant development for the tourism sector, Greek municipalities now have the authority to increase the stayover duty for hotels and short-term rental properties listed on platforms like Airbnb.

The development follows the approval of a law on Friday that establishes a framework for local governments to adjust the stayover duty (known in Greek as the “τέλος διαμονής παρεπιδημούντων”).

As outlined in Article 30 of the new law, a stayover duty of 0.5 percent will be applied to the rental price of various accommodations, including hotels and short-term rentals, for stays lasting less than six months. The duty is intended to be an additional source of revenue for first-degree local government organizations, allowing them to fund a range of local initiatives.

Moreover, municipal councils can choose to increase the duty rate to 0.75 percent.

According to the law, the adjustment can vary depending on specific residential areas or the type of accommodation, enabling local authorities to tailor the duty based on the needs and aspects of their communities. The increase takes effect three months after its passage and publication in the Government Gazette, the official journal of the Greek government.

The stayover duty will be collected from guests and must be included in the tax invoices issued by accommodation providers. Property owners are responsible for remitting these taxes to their respective municipalities, aligning with the schedule for Value Added Tax (VAT) submissions.