Greece Draft Law: Hefty Fines for Illegal Home Rentals to Tourists

According to a draft law currently being examined at the Greek finance ministry, individuals found renting properties to tourists illegally will be subject to hefty fines.

Hosts leasing out accommodation facilities without displaying the required GNTO (Greek National Tourism Organization) certification may be slapped with fines of up to 100,000 euros.

Alternate Tourism Minister Elena Kountoura told a press briefing last week that she was pushing ahead with the regulatory framework in order to tackle tax evasion to the tune of some 300 million euros annually.  

The draft law, which is currently being examined by the finance minister and expected to be up for discussion and vote in September, places a limit on the number (four) of homes that can be rented out per owner; the accommodation facility must be larger than 9m2 with natural lighting, ventilation and heating; it must be furnished and rented out without the provision of services other than bed linen. Tax will be withheld on transaction and paid to tax authorities each quarter. Homes can be leased out for a total of 90 days in urban and popular tourist areas and for 50 days at smaller destinations.

The draft law also provides for the creation of a registry, where all property owners renting out their homes as tourist accommodation will be required to register.

Meanwhile, sector insiders are expressing their concern that the said framework will not be enough to hinder the sharing economy, which already has more than 100,000 homes being rented out via e-platforms. They are proposing the taxation and declaration of all incomes from leasing.