New tax legislation likely to shake up short-term property lease market

A new law passed by Parliament in late December requires that property owners who use digital platforms such as Airbnb, Tripping and FlipKey to lease accommodation to tourists for short periods pay up to 45 percent in tax on their income, with the purpose of boosting state funds. However, analysts warn that the measure might result in deterring potential visitors to Greece and increasing the appeal of rival destinations.

Parliament ratified the bill that imposed a 15-45 percent tax on annual income from renting property for tourism accommodation, after Airbnb, the leader in home-sharing platforms with a net worth of more than $30 billion and a global network of property owners who lease lodgings, refused to turn over personal data of customers and property owners registered with the online platform.

In the legislation the Finance Ministry stipulates categories of tax...