New Greek Tax Bill Increases ‘Climate Resilience Fee’ for Hotels, Airbnbs

Photo source: Hellenic Parliament Press Office / Copyright: Aliki Eleftheriou

A new tax bill tabled in the Greek Parliament on Monday increases the climate resilience fee for all categories of tourism accommodation, and introduces a cruise passenger levy. These measures are designed to address climate change and enhance the country’s tourism infrastructure, respectively.

The bill, titled “Measures to Boost Income, Tax Incentives for Innovation and Business Transformations, and Other Provisions,” also proposes suspending the issuance of new short-term rental licenses in central Athens for a year while offering income tax exemptions for properties previously declared vacant or exclusively rented on platforms like Airbnb.

Climate resilience fee

Dmitry Kalinovsky / Shutterstock.com

The climate resilience fee will be applied across all tourism accommodations, including hotels, Airbnb-type short-term rentals, rooms for rent, and other hospitality units. The increased fee is structured based on the type and category of accommodation and is set to vary seasonally.

From April to October, the fee will be as follows:

– 1-2 star hotels: 2 euros per night
– 3-star hotels: 5 euros per night
– 4-star hotels: 10 euros per night
– 5-star hotels: 15 euros per night
– Furnished rooms/apartments: 2 euros per night
– Short-term rental properties: 8 euros per night
– Detached homes (over 80 sq m) for short-term rental: 15 euros per night
– Furnished tourist villas: 15 euros per night
– Furnished tourist residences: 8 euros for properties under 80 sq m, 15 euros for those over 80 sq m

From November to March, the fee will be as follows:

– 1-2 star hotels: 0.5 euros per night
– 3-star hotels: 1.5 euros per night
– 4-star hotels: 3 euros per night
– 5-star hotels: 4 euros per night
– Furnished rooms/apartments: 0.5 euros per night
– Short-term rental properties: 2 euros per night
– Detached homes (over 80 sq m) for short-term rental: 4 euros per night
– Furnished tourist villas: 4 euros per night
– Furnished tourist residences: 2 euros for properties under 80 sq m, 4 euros for those over 80 sq m

Revenue generated from the climate resilience fee will be allocated to projects related to disaster prevention, climate change adaptation, and improving infrastructure supporting Greece’s tourism sector.

Cruise passenger levy

A new levy will also be imposed on cruise passengers disembarking at Greek ports. Ranging from 1 to 20 euros per passenger, depending on the port and season, the collected revenue will be distributed to the municipalities hosting the ports and the Ministries of Shipping, Insular Policy, and Tourism to fund infrastructure development and tourism enhancement.

Ban on new short-term rental licenses in central Athens

The tax bill suspends the availability of new homes in three municipal districts in the center of Athens for short-term rental for one year.

Specifically, from January 1, 2025, to December 31, 2025, registration in the Short-Term Residence Property Registry will not be permitted for properties located in the 1st, 2nd, and 3rd municipal districts of the Municipality of Athens.

Neighborhoods in the three districts are as follows:

– 1st Municipal District: Plaka, Kolonaki, Koukaki, Syntagma, Omonia, Monastiraki, Exarchia, Ilisia, Neapoli
– 2nd Municipal District: Mets, Neos Kosmos, Agios Artemios, Pagrati
– 3rd Municipal District: Votanikos, Metaxourgeio, Gazi, Petralona, Rouf

In case of non-compliance, a fine equal to 50 percent of the income obtained from short-term rental, from January 1, 2025, until the audit, will be imposed, with a minimum penalty of 20,000 euros. A new violation within the same tax year will result in a fine equal to the amount of the rents collected, with a minimum penalty of 40,000 euros.

Long-term lease incentive

To encourage long-term leasing, the tax bill offers a three-year income tax exemption for properties previously declared vacant or used exclusively for short-term rental. These properties must be leased for a minimum of three years between September 8, 2024, and December 31, 2025. Additional criteria apply regarding tax filings for vacant properties.

Additional measures

The bill includes a number of provisions not related to tourism, such as an extension of VAT suspension for new construction projects until December 31, 2025, and a permanent exemption from property tax (ENFIA) for listed buildings valued up to 400,000 euros. It also outlines tax reductions aimed at increasing citizens’ disposable income and measures to modernize Greece’s tax system and improve public administration effectiveness.