Greek PM: VAT to be imposed on operators of three or more AirBnB-type lodgings as of Jan. 1, 2024

Greece’s booming short-term leasing sector, so-called “AirBnB-type” lodgings, will be subject to the application of VAT, Greek Prime Minister Kyriakos Mitsotakis himself announced on Saturday, speaking at an annual state-of-the-economy address in Thessaloniki.

According to Mitsotakis, income from three or more properties exploited on a short-term basis will be subject to VAT and other fees imposed on hospitality units, i.e. hotels, motels, rooms-to-let etc. – beginning as of Jan. 1, 2024.

Under the current framework, an individual leasing out “AirBnB-type” properties is taxed at 15 percent of the generated income, if the latter is below 12,000 euros annually; 35 percent for income of between 12,001 and 35,000 euros and 45 percent for income in excess of 35,000 euros.

This specific sub-sector of the overall Greek tourism/holiday industry has grown exponentially over the past few years, with projected turnover expected to reach roughly four billion euros this year. Indicative of the fertile climate – or the complete absence of regulatory rules – is that the turnover of the Airbnb economy in Greece is expected to reach 4 billion euros this year

An estimated 100,000 properties in Greece are listed on the AirBnB platform alone, with central Athens alone featuring 12,345, according to the Inside Airbnb website.

In the northern city of Thessaloniki, listings total 3,717; 25,425 for Crete, and more than 32,000 for the south Aegean region, which includes the popular Cyclades Island chain.