Significant changes are expected in the short-term rental market, with property owners on alert to adapt to the final regulations that will be voted on in the tax bill currently under consultation. Their goal is to take the necessary actions for their benefit and, of course, comply with the deadlines set in the final text that will become law.
The market is anticipating some improvements from the Ministry of Finance regarding the Resilience Tax and incentives for increasing housing supply. This could be achieved either through the conversion of short-term rentals into long-term ones or by opening up closed apartments.
However, no major changes are expected regarding the one-year suspension of new properties entering saturated areas in Athens. Property owners who wish to include their properties in the short-term rental market must act quickly, as the deadline for registering them with the AADE (Independent Authority for Public Revenue) Registry and obtaining a Property Registration Number (AMA) is December 31, 2024.
This date is particularly crucial for areas such as Koukaki, Exarchia, Pangrati, and Petralona. From January 1, 2025, restrictions on short-term rentals will be imposed, and properties will not be allowed to be registered in the Short-Term Rental Property Registry for at least one year. Property owners who wish to rent their properties in 2025 must complete the process by the end of 2024.
From New Year’s Day 2025, for one year, the Property Registry will not accept new property registrations in the following Municipal Areas of the Municipality of Athens:
– 1st Municipal District: Plaka, Kolonaki, Koukaki, Syntagma, Omonia, Monastiraki, Exarchia, Ilisia, Neapoli
– 2nd Municipal District: Mets, Neos Kosmos, Agios Artemios, Pangrati
– 3rd Municipal District: Votanikos, Metaxourgio, Gazi, Petralona, Rouf
These restrictions may be extended until December 31, 2026, by a joint decision of the Ministers of National Economy and Finance, Development, and Tourism.
Additionally, failure to register in the Short-Term Rental Property Registry and illegal renting without the AMA will result in severe penalties. Specifically, an administrative fine equal to 50% of the income from the short-term rental of the property will be imposed, with a minimum amount of 20,000 euros. If a new violation is detected within the same tax year, the fine could reach the total amount of the collected rent, with a minimum of 40,000 euros.
AADE has already started adapting its electronic platform and is expected to carry out strict inspections for property owners and managers who fail to follow the required procedures. It is estimated that by the summer of 2024, more than 12,500 short-term rental accommodations were operating in the center of Athens, with the commercial triangle (Plaka, Monastiraki, Acropolis) hosting 2,440 accommodations, Koukaki 1,164, Neos Kosmos 992, and Exarchia 918.
The process of obtaining an AMA is electronic and can be done by the owner via their personal TAXISnet credentials. Among other things, the Property Identity Number (ATAK) and the square footage of the property are required if it is a partial lease.
A property manager wishing to operate short-term rentals is required to: * Obtain a Property Registration Number (AMA) * Display the AMA on digital sharing economy platforms, as well as on any advertising medium * Submit the Short-Term Stay Declaration by the 20th of the month following the tenant’s departure
Finally, according to the tax bill, the resilience tax on the climate crisis (formerly the lodging fee) for Airbnb-type properties will increase: * From 1.50 euros to 8 euros per day during the period from April to October * From 0.50 euros to 2 euros per day from November to March * For single-family homes larger than 80 sq.m., the resilience tax will be 15 euros from April to October and 4 euros from November to March.
This increase has caused strong reactions from citizens and organizations, who are concerned about its impact on property owners and rental prices.
