Greece Introduces Fines Up to €20,000 for Short-term Rentals Not Following New Rules

Owners and managers of short-term rental properties in Greece must comply with new minimum standards by October 1, or face fines up to 20,000 euros.

A recent official notice from Greece’s Independent Authority for Public Revenue (AADE) highlights the serious penalties that may be imposed on those who fail to meet the newly enacted rules, recently passed by Parliament.

New minimum standards for short-term rental properties

AADE has outlined the following minimum specifications that all short-term rental properties must meet:

– The property must primarily serve as a residence, with sufficient natural light and ventilation, and air conditioning.
– A valid insurance policy covering civil liability for damages or accidents must be in place.
– A responsible declaration from a licensed electrician installer is required, along with fire extinguishers, smoke detectors, an electrical leakage relay or anti-shock relay, and escape signage.
– Properties must have a certificate of pest control and disinfestation, a first aid kit, and a guide with emergency contact information.

In addition, properties located in basements or semi-basements that fail to meet these criteria (such as insufficient natural light) will be prohibited from operating as short-term rentals on major platforms.

Inspection and enforcement process

To ensure compliance, joint inspection teams from the Ministry of Tourism and AADE will conduct on-site checks at short-term rental properties. The inspections will include both a physical property check and a tax audit.

Property owners will be notified at least 10 days in advance, allowing them to provide evidence of compliance prior to the inspection. If deemed necessary, inspection teams may involve the Greek Police to assist in the process.

Ministry of Tourism employees conducting the inspections will carry official identification and a written order from the Ministry. The order will include detailed information about the inspection, such as the name of the property manager and the tax registration number of the property.

Penalties for non-compliance

The new regulations stipulate significant fines for property owners and managers who do not adhere to the minimum requirements:

– A first violation will result in an immediate fine of 5,000 euros.
– Repeat offenders could face escalating penalties, with fines increasing to 10,000 euros for a second violation within one year.
– Subsequent violations may incur fines of up to 20,000 euros.

The official notice underlines that non-compliance could lead to further consequences, including the potential for the property to be removed from short-term rental platforms such as Airbnb, Expedia, and others. The fines will be enforced under the Public Revenue Collection Code (KEDE), with the possibility of seizure for outstanding payments.

Impact of new regulations

These new regulations, which come after the imposition of a ban on new short-term rental agreements in three central Athens districts starting January 1, 2025, aim to regulate the rapidly expanding short-term rental market in Greece. The ban prevents the issuance of Property Registry Numbers (AMAs) for new short-term rentals in areas including Syntagma Square, Omonia Square, Exarchia, Neos Kosmos, Pagrati, Kerameikos, and Metaxourgeio.

The Greek government believes these measures will help ensure that properties meet safety standards while contributing positively to the country’s tourism sector.