AAD guidelines for home-based rentals via Airbnb platform – Picture archive Villa Costa
Instructions are given in its circular to the AADE to those who rent real estate through electronic short-term lease ( Airbnb ).
This is a circular of the AAD governor, Giorgos Pitsilis, explaining the obligations of the owners who rent real estate through Airbnb so that they will not find themselves in front of the tax office at the electronic crossings.
According to the new circular:
1. Income received by natural persons, legal entities and legal entities shall consist of the total agreed rent or the total amount based on the cancellation policy that the lessee pays, as the case may be. The total agreed rent includes all charges borne by the lessor and passed through the lease to the lessee or are shown separately from the rent (for example, any commission on the digital platform borne by the lessor, cleaning costs before the tenant arrives at the property, charges for use of air conditioner, electricity, wi-fi, etc.). Any charges relating to the lessee’s relationship with the digital platform (for example, any commission on the digital platform borne by the lessee) are not taken into account in the total agreed rent.
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2. In the case of the co-ownership of a property, the co-owners acquire this income on the basis of the co-ownership rates on the “Property”, unless they have leased their ownership rates on the “Property” to the “Operator” – co-owner and at the same time subcontracts the right to sublease for short-term leases, in which case it is wholly entitled to the income earned from short-term leases in the context of the sharing economy.
3. It is not possible to register in the “Short Term Real Estate Registry” of more than one “Administrator” for the same “Property”, unless each of them operates on a different digital platform
4. The provision for accommodation of any other space other than the “Property” is an income from business activity respectively (for example, renting of floating vehicles, caravan, etc.).
5. Persons who made short-term leases as sub-tenants as of January 1, 2018 and the lease agreement with the lessors expired prior to the commencement of the application of the “Short-Term Real Estate Registry”, ie on 30.8.2018, are not obliged to register in the Register but will they must declare the income they obtained from the short-term lease of the “Real Estate” of the sharing economy distinctly and collectively, by “Property”, on the forms of income tax returns for the tax year 2018
6. Income derived from short-term leases of two calendar years, for example from 25.12.2018 to 5.1.2019, shall be allocated in the respective tax years (2018 and 2019) on the basis of the days of residence per year and taxed by the tax return of income for each year. In this case, the lease is considered to be uniform and in order to properly separate the income per year, two “Short-Term Statements” are submitted, one for each tax year, the first of which concerns the tax year of the lessee’s arrival at ” “Shall be submitted by 20 February of the lessee’s tax year of departure.
7. Income derived from the provision of services during the tenant’s stay in the “property” (excluding the provision of bed linen) constitutes income from business activity, while the provision of services when the employees are switched to the “Property”, that is, when the “Property” remains vacant, does not constitute a business activity for tax purposes (for example, cleanliness of the property after the departure of a lessee and before the arrival of another). It is emphasized that the mere supply of bed linen does not constitute a business activity as above, while the case of changing bed linen during the tenant’s stay in the “Property” constitutes a business activity.
8. Money paid by digital platforms to ‘Real Estate Managers’ (landlords – sub-tenants) in the form of a commission / bonus is not income from real estate but income from business activity. In particular, lessors-sub-tenants, who are natural persons and do not otherwise engage in business activity, are not required to issue sales notes and to keep books for commissions / bonuses not exceeding EUR 10 000 per year , as such transactions are carried out occasionally and carried out as ancillary employment of short-term lease of real estate. Where appropriate, this income is declared and taxed under codes 403-404 or 409-410 of Form E1.