In efforts to clarify misunderstandings and provide guidelines for individuals wishing to rent out their properties for tourism accommodation, Greece’s Independent Authority for Public Revenue (AADE) issued a manual on its e-platform that includes frequent questions and answers regarding short-term rentals.
According to AADE, all parties are required to submit a declaration of property lease information for tax purposes; this however does not define the transaction between renter and proprietor, which is covered by law.
– When is a property owner obliged to submit the declaration of lease?
Proprietors are required to declare all the information of the lease online whether the transaction is a written or verbal agreement and regardless of renumeration method with the exception of those offering homes of up to 200m2 for free.
– What types of rentals require declaration of lease?
Those rented out for residential use, commercial use, short-term tourist accommodation (up to three months), for agricultural use, or those offered for free or return in kind.
– When do I have to file a lease statement?
In cases of initial leases or sub-leases, when extending the right to use property for free, or when any of the above have been modified and in cases of short-term rentals.
– In the case of short-term rentals:
If the proprietor does not have a VAT ID number, he must apply for one at the relevant tax authority in order to submit a declaration of lease online.
Foreign nationals renting out homes are not required to have a VAT ID number in the case they lease their properties for short-term tourism accommodation (up to three months per year) to foreigners not liable for taxation or to Erasmus exchange students for a period of up to six months. In this case they will be required to submit passport number, permanent address and nationality.
Currently being established legal entities which have yet to receive VAT ID numbers: In this case, they are required to register the name of the entity and the VAT ID number of its legal representative. Once the VAT ID number is issued, the company will have to submit relevant info on the ministry’s Taxisnet application.
For further information in Greek press here.