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Taxman Knockin’ on Greek Hoteliers’ Door
Posted On 27 Oct 2016
Hoteliers across Greece as well as property owners active in short-term rentals are being crosschecked by the Greek tax authorities in efforts to clamp down on rampant tax evasion.
The General Secretary of Public Revenue is looking into online rentals which have gone by unnoticed and have deprived the Greek state of hefty sums of revenue. Probes began in July at popular tourist destinations, including Halkidiki, Kavala, Mykonos, Santorini, Rhodes and Crete, where inspectors crosschecked Internet bookings and rates.
Tax evasion is common in the tourism sector, particular as a result of the sharing economy and online booking. Indicatively, in July government auditors uncovered discrepancies between declared and estimated income to the tune of 4.5 million euros and in many case no tax declaration, “vague” data on tax return forms or lacking accounting books.
In the meantime, Greek tax authorities are calling all parties letting their properties through rental companies like Airbnb to proceed with the legal requirements or face the consequences.
The General Secretary of Public Revenue is expected to examine Greek Tourism Confederation (SETE) and foreign tour operator date to establish a complete picture of the tourism industry.
The taxman’s message is clear: “Declare or pay the price”.
Interesting article. We have an EOT rental property business that works transparently, with all bookings accountable. We are closing the business in it’s current for as the total level of taxation makes it unviable. We are British. Our problem is illegal taxation by the Greek state of my UK police officers pension. It is protected from dual taxation by agreement dating back 60 years, but now the Greek state insists on levying a solidariy tax… So we are closing the business and will no longer be Greek tax residents. We will operate for a limited season with airbnb type bookings and pay the tax on this. However the rules under which we can do this are completely unclear… (so we will wait and see what to do)