05 Dec SHORT-TERM RENTALS: WHAT YOU NEED TO KNOW BEFORE YOU START
The short-term rental market (widely known as Short-Term Rentals), led by platforms such as Airbnb, has transformed the way we travel—and especially the way many property owners make use of their real estate assets.
This dynamic form of rental can generate significantly higher returns compared to traditional long-term leases, making it an attractive investment opportunity.
However, the apparent simplicity of the process hides a complex web of legal, tax, and operational requirements.
Before you click “publish” on any platform, it is crucial to understand the regulatory framework, the challenges, and the risks. This guide outlines step-by-step everything you need to consider so that your entry into the short-term rental world is legal, profitable, and hassle-free.
The original legislation for short-term rentals (Law 4446/2016) was quite flexible, aiming to encourage the sharing economy.
However, as of January 2024, stricter rules have been implemented to tackle tax evasion.
The main goal of the new framework is to clearly separate business activity from private property leasing.
Definition – A short-term rental is defined as the rental or sublease of a property, regardless of whether it is listed on a digital platform or not, for a specific period shorter than 60 days, without offering any additional services other than accommodation and bed linen.
The 60-day limit applies per lease agreement, not the total number of days per year the property is rented.
Obligation – If you plan to rent/sublet a property (room, apartment, house, etc.) for less than 60 days, you must first register the property in the Short-Term Stay Property Registry (AMA) and submit a Short-Term Stay Declaration by the 20th of the month following the tenant’s departure.
If the rental period exceeds 60 days and no additional services are provided, you do not need to submit a Short-Term Stay Declaration.
Instead, you must submit a “Lease Information Declaration”, even if the lease was made via a digital platform.
A single property may be rented both short-term and long-term within the same year. Each case is handled separately based on duration.
Definition – Special Operating Sign (ESL) – If all apartments in a building or housing complex are rented out short-term, the building is considered a tourist accommodation and must hold a Special Operating Sign (ESL), or submit a notification to the competent authority
If a host does not have an ESL or has not submitted a notification, they must submit Short-Term Stay Declarations and cannot submit “Lease Information Declarations.”
More details in our article “New Notification Procedure for Tourist Accommodations”
Definition – A municipal tax called the “Stayover Levy” applies to all short-term rentals (regardless of the number of properties).
It is calculated at 0.5% or 0.75% (depending on municipal decision) on gross rental income, is borne by the guest, and paid by the property manager to the local municipality by the legally established deadline.
Definition – Climate Resilience Fee. This replaces the former accommodation tax. It is charged per room or apartment, per day, borne by the guest, and must be collected after their stay but before their departure. The host must issue a “Special Receipt for Climate Resilience Fee Collection.”
More info in our article “New Obligations for Airbnb Hosts as of 1/1/2024”
Depending on the number of properties and legal status, hosts fall into three categories:
- Private Individuals renting out up to 2 properties (AMA numbers)
See details here - Private Individuals renting out 3 or more AMA properties
See details here - Legal Entities (General Partnerships, LPs, IKE, S.A., Ltd.)
See obligations here
Mandatory Property Requirements
Please review the mandatory specifications that all short-term rental properties must meet in our article “Everything You Need to Know About the New Short-Term Rental Requirements”
These specifications are subject to inspection by the Ministry of Tourism and the Independent Authority for Public Revenue (AADE) as long as the property has an active AMA number.
Terminations & New AMA Registrations
See what applies regarding termination or new registration of AMA numbers in our article “Short-Term Leases: What Applies to Termination and New Property Registry Numbers (AMA)”
