05 Dec Legal Entities: OE, EE, IKE, SA, Ltd. – Property Rentals starting from the First Property Registration Number (AMA)

Legal Entities: OE, EE, IKE, SA, Ltd. – Property Rentals starting from the First Property Registration Number (AMA)

If you lease your properties through a legal entity (such as General Partnerships, Limited Partnerships, Private Companies, SA, Ltd.) and intend to exploit real estate assets, you must comply with the following:

1.OBLIGATIONS AT THE START OF RENTAL ACTIVITY

A. Company Establishment and Business Activity Codes (KAD):
The company must be established with the appropriate Business Activity Codes (KAD):

• • 55.20.11.06: Short-term property rental services via digital platforms under the sharing economy framework.
  • 55.20.11.07: Short-term property rental services outside of digital platforms.

Alternatively, if the company is already established, these KADs must be activated.

If the company is not under the VAT regime due to a different main activity, activating the above KADs will require it to switch to the regular VAT regime.

2. AMA Registration:
The Property Registration Number (AMA) must be obtained via the Short-Term Stay Property Registry platform.
This number, along with the property ID (ATAK), must be declared on the desired digital rental platforms (e.g., Airbnb, Booking).

The company must prove it has the right to exploit the property, either through the E9 property declaration or through a commercial lease agreement with a clause allowing subletting via digital platforms (in accordance with Article 111 of Law 4446/2016).

3. Registering on Digital Platforms:
The company must be registered as a business account on each platform.
Make sure to verify each platform’s settings and fee structures individually like the Climate Resilience Fee must be displayed as a separate charge, calculated based on the month and type of property, and remitted by the end of the following month.
Full guide in our article “Airbnb – Climate Crisis Resilience Fee starting January 1, 2025”

And the Municipal Stayover Tax (0.5% or 0.75%) must also be declared as a separate item, as per the local council decision.

It is important that net revenue from each booking is accurately reported to the tax authority (AADE) and matches the net amount on receipts (APY) and your accounting books, since cross-checks are performed between digital platforms, the property registry, and your financial records.

4. Registering the Property as a Branch with AADE:
Each short-term rental property must be declared as a branch in the AADE system based on its location, which is subject to business activity tax.

B. MONITORING & ONGOING OBLIGATIONS

1.Record-Keeping for Property Registry Declarations:
The following booking data must be collected for submission to the Short-Term Stay Property Registry (AADE):

• • Month of booking
  • Tenant’s full name and tax ID or passport number
  • Check-in and check-out dates
  • Total rent (incl. host fees, cleaning charges, VAT)
  • Platform used (e.g., Airbnb, Booking)
  • Cancellation date (if applicable)

1. • Total amount received according to cancellation policy (if applicable)

Our office offers an Excel template to help you consolidate and track this data.
Please contact your assigned accountant.

2.Issuing Receipts (APY):

A receipt with 13% VAT must be issued on the guest’s departure date for the rental amount. A separate receipt must be issued for the Climate Resilience Fee, calculated based on the stay duration, month, and property type.

Receipts must be issued via e-timologio or ERP system, depending on the booking volume.

3.Filing Short-Term Stay Declarations (AADE):
These must be submitted by the 20th of the following month after check-out.
In case of cancellation where rent is partially charged, an initial declaration must still be submitted by the 20th of the month following the cancellation.

To ensure proper and timely processing, the Excel file must be sent to us no later than the 10th of the month following the guest’s check-out.

4.Submitting Climate Resilience Fee Declaration:
This must be filed digitally on a monthly basis via the AADE website by the end of the month following receipt issuance.
Remember, this fee must be collected from the guest at departure and issued as an APY.

5.Submitting the Municipal Stayover Tax Declaration:
This must be filed by the last working day of the month following either the guest’s departure month or the reporting quarter.

Note: This declaration must be submitted after the corresponding VAT return and must match the net business revenue.
The Stayover Tax is included in the VAT taxable base.

Clarifications:

• Short-Term Stay Declarations may be modified until February 28th of the income tax return year, before the finalization of the Short-Term Stay Registry.
• The Short-Term Stay Property Registry is finalized by February 28th of the income tax filing year.