The tourism development of Greece in recent years combined with the large tax burden of real estates, led more and more homeowners in using them as tourist accommodations.
In our country the potentials provided to the owners of such real estates are regulated by the recent laws L.4179 / 2013 and L.4254 / 2014.
Specifically it is now possible to lease any dwelling for a period of, at least one month to any Greek or foreigner for temporary stay or holiday purposes. In this case the homeowner doesn’t need to ensure the special operation sign of GNTO, nor to file a profession entry at the competent tax office. Moreover, the income arising in that case is considered as rental income and is taxed separately.
If the homeowner leases the real estate for temporary stay and for a period of less than 3O days, that is considered a tourist accommodation and he is indebted to issue the special operation sign of GNTO and to file a profession entry at the tax office.
A special category of tourist accommodations are the “tourist furnished villas”. As such are defined, according the law, “the detached area of at least 80 sq.m. which have independent external access, have autonomy of the plot / field and building, they are though, non-main-hotel tourist accommodations, within the meaning of Article 2 of the Law. 2160 / 1993, without providing services”. For the homeowners of such real estates it is possible to, not only lease for a period greater than a month but also to the lease on a week basis. Homeowners bearing the features and specifications of the tourist unfurnished villa may lease it as a whole and not in sections to physical persons with no possibility of further under lease, for a period of at least one week and not more than three months in total per year. In this case there is no need to file a profession entry at the tax office, but a special operation sign of GNTO is required.
Three tax highlights to keep in mind:
1. In any case, the provision of services related to the stay, such as cleaning, catering, entertainment, leisure, sports impose homeowners of furnished houses or villas to file a profession entry at the tax office.
2. The lease of furnished houses or villas via the Internet between individuals is characterized by the Greek legislation as leasing business of rented furnished rooms.
3. The failure of filing a profession entry at the tax office, the non-issuance of legal tax information and the failure to declare income in the annual tax return constitute violations of the tax law.