Incomes obtained from short-term rentals (such as Airbnb ) are targeted by the Tax Office, on the one hand to reveal some of the tax evasion resulting from this activity and on the other hand to block unfair competition that exists in the tourism industry.
In recent years and especially this year, the incomes from Airbnb and other short-term rentals have shown an impressive increase and naturally they have been targeted by the tax authorities.
The AADE launches a barrage of electronic checks and cross-checks on tax returns, data from the Airbnb and Booking.com platforms, but also on credit cards and bank accounts with the aim of revealing “hidden” income.
Real estate owners who rent their properties through listings on social media (Facebook, Instagram) are also targeted.
The Tax Office and auditors are looking for all those who rent out properties but at the same time hide from the authorities the incomes they receive or declare much smaller amounts to avoid tax.
The AADE radar will initially find the owners and managers of Airbnb-style properties who have not declared the Property Registry Number (PRN) on the online short-term rental platforms where the properties are booked, or have declared incorrect information about their properties.
This will be followed immediately by a tax audit of the income declared by the owners of short-term rental properties. The AADE will cross-check the data sent by the online short-term rental platforms with the incomes shown by the taxpayers in the tax returns, specifically in the E2 form.
Heavy fines are coming
In cases where it is established that the properties have either not been declared in the “Short-term Accommodation Property Register” or have been posted on digital platforms without the Short-term Accommodation Property Registry Number (AMA) or the Special Operation Symbol (ESL) or the Unique Notification Number (UNIN) ), then they are sent to the D.O.Y. details of properties and managers. For tax delinquents, the Tax Office will sew a “suit” of extra taxes and fines of up to 5,000 euros.
With the notices that AADE will send, it will request the immediate compliance of taxpayers. Those who do not make the necessary corrections, either by declaring the AMA or by correcting any errors and omissions in their property data in addition to the imposition of a fine of 5,000 euros will see their property deleted from the digital platforms on which they have posted and exploited the properties their.
At the time when AADE is planning tax audits for those who operate Airbnb-type properties, POMIDA together with the Association of Short-Term Rental Companies of Greece sent a letter to the Prime Minister and the relevant ministers in which they emphasize that the measures being promoted for legislation against short-term rentals lead not to regulation, but in complete economic “strangulation” of real estate owners, their managers, employees and their families, but also suppliers, businessmen, shopkeepers and the local communities of our country.
Property owners and representatives of short-term property leases are asking “for a dialogue to take place before it is too late, for a regulation that will not unilaterally aim at the interests of hoteliers but at the general interest of the country and its society, so that we all come out as winners, and first of all all the tourism of our country”.
According to POMIDA:
The restrictions on overnight stays will hit the country’s tourism product and push the successful ones into the underground economy and tax evasion.
The right of Municipalities to determine a maximum percentage of homes for short-term rental could only make sense if vacant homes are also taken into account.
The right of general meetings of apartment buildings to decide whether to allow short-term rentals, when it is not prohibited by regulation, will literally turn the meetings into “boxing rings”
Any imposition of VAT will hit the product.
Municipal taxes in a clear legal regime could be fair, after discussing their type and amount.