Greece to Collect €830 Million in Tax Revenue from Short-term Rentals in 2024

Photo source: Prodexpo

Tax revenue from short-term rentals in Greece has seen a dramatic rise in recent years, with revenues increasing more than tenfold since 2017, according to Giorgos Pitsilis, head of the Independent Authority for Public Revenue (AADE).

Speaking at the 25th Prodexpo real estate conference on Tuesday, Pitsilis revealed that tax revenues from short-term rentals were around 70 million euros in 2017, while last year they surged to 740 million euros.

For 2024, AADE has already recorded revenues of 742 million euros within the first nine months, compared to 640 million euros during the same period in 2023.

“We estimate that by the end of the year, revenues will reach 830 million euros,” Pitsilis said.

Giorgos Pitsilis, head of Greece’s Independent Authority for Public Revenue (AADE). Photo source: Prodexpo

He underlined that AADE, in collaboration with short-term rental platforms, has developed tools to gather high-quality data about the market. This data shows that 6,200 legal entities have declared ownership of more than three properties. Compliance with tax regulations has been promising, with 90 percent of these entities having opened tax records. However, about 500 entities provided incorrect codes, while another 500 have not taken any action.

“We have identified these non-compliant entities and will be following up to ensure they comply,” Pitsilis added, noting that only 12 percent of listings on these platforms are currently problematic.

Vacant properties

When asked about the issue of vacant properties, Pitsilis acknowledged that the exact number is not yet known. However, this is expected to change by 2025, with the introduction of a comprehensive property registry and enhanced property management systems, developed in collaboration with the Land Registry.

PM’s economic adviser shares data on short-term rental market

Alexis Patelis, Economic Adviser to the Prime Minister. Photo source: Prodexpo

On his part, Alexis Patelis, Economic Adviser to the Prime Minister, shared key statistics on Greece’s short-term rental market, noting that 100,000 properties currently have a unique Property Registry Number (AMA) and are leased for short-term stays. Of these, 40,000 AMAs have been added in the last four years.

“One-fourth of these 100,000 properties are leased for at least 90 days a year, which is why we ultimately decided not to impose a time limit,” Patelis explained. He further detailed that 80,000 of these properties are owned by individuals, with 80 percent being rented for fewer than 90 days annually. In contrast, 20,000 properties are owned by legal entities, with at least half leased for more than 90 days, leading to a tightening of regulations for legal entities.

Patelis also noted that the average income per AMA is approximately 7,350 euros per year. Referring to the recently announced one-year ban on new short-term rental registrations in three areas of central Athens, he emphasized concerns about the potential impact on the social fabric of these neighborhoods.

“In these areas, short-term rentals exceed 5 percent of total properties. The ban will take effect in early 2025, and by the end of the year, we will assess whether the measure has been effective and whether it should be extended,” he added.

Patelis stressed that the government aims to improve the quality of databases and enhance transparency in the property market. He pointed out that a significant amount of information is spread across various agencies and needs to be better organized.

Furthermore, Patelis highlighted regional disparities in tourism development, which have led to imbalances across the country. He also emphasized the importance of addressing climate change and improving the energy efficiency of buildings as major priorities.

The Prodexpo event, held from October 21-22 at the Athens Concert Hall, is Greece’s longest-running conference dedicated to the real estate sector.