Airbnb: What changes with the new tax bill – Fine up to €40,000 for new properties in the centre of Athens

The new tax bill provides for stiff fines for those who ignore a regulation that bans new permits for Airbnb-type short-term rentals in downtown Athens for all of 2025.

Those identified through the Register of Short Term Rentals or from information sent to ADEA digital platforms Airbnb, Booking and Expedia Group/VRBO, or those who are found after cross-checks and audits by ADEA, will be asked to pay a fine corresponding to 50% of their turnover, with a minimum amount of €20,000. If they commit the same offense again, the fine will amount to 50% of their turnover up to that time, with a minimum of €40,000.

Specifically, the bill provides for a “suspension of the disposal of new residences” for short-term rentals in the 1st, 2nd, and 3rd Municipal Communities of the Municipality of Athens for one year, from January 1 to December 31, 2025. During this period, no new properties may be registered in the Short-Term Rental Property Registry for these areas.

In case of non-compliance, a fine equal to 50% of the income from the short-term rental is foreseen, with a minimum amount of 20,000 euros. In the case of a second violation within the same tax year, the fine amounts to the amount of the rent received, with a minimum of 40,000 euros.

It should be recalled that, according to the legislation, Airbnb-type rentals are registered in the Register of Short-Term Accommodation as follows:

• • – “Short Stay Declarations” are submitted by the 20th of the month following the date of the tenant’s departure from the property.
  • – “Short Term Residence Declarations” may be amended up to February 28th of the year of filing income tax returns, before the finalization of the Register.

– The “Short Term Residence Declarations” may be amended up to February 28th of the year of filing income tax returns, before the finalization of the Register.

• – In case of cancellation of the lease, if the tenant is scheduled to pay an amount under a cancellation policy, an initial return shall be filed by the 20th of the month following the cancellation.
• – The Short-Term Residence Property Registry shall be finalized no later than February 28 of the year of filing income tax returns

Another provision of the bill provides that those who withdraw property from short-term leases and make it available for long-term leasing will be exempt from income tax for 3 years. The measure also applies to those who open closed properties and make them available for traditional rental.

Specifically, the bill provides an income tax exemption for 3 years for properties to be rented out that were previously declared vacant or made available for short-term rental.

The requirements include:

• 1. Residential buildings up to 120 sq.m.
• 2. Contracts of at least three-year lease, to be concluded from 8 September 2024 to 31 December 2025,
• 3. Residential properties that in the years 2022, 2023, and 2024 (or 2025 if the lease is drawn up at that time) were declared as vacant (Form E2) or were not declared as leased, main or secondary residences of the lessors, nor as owner-occupied or free-of-charge properties (Forms E1 and E2), or were made available exclusively for short-term rentals with declared concluded leases to the Tax Administration.

Finally, another provision doubles the reduction of ENFIA from 2025 (from 10% to 20%) for residences of individuals with a taxable value of up to 500,000 euros that are insured for natural disasters (fire, earthquake, flood). A condition for the reduction is that the insurance must relate to the previous year, with a duration of at least 3 months. If the insurance lasts less than one year, the reduction is adjusted proportionally.

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