The first Airbnb owners who failed to declare their earnings from home-sharing practices were uncovered by Greece’s Independent Authority for Public Revenue (AADE) this week.
Under a pilot program aiming to weed out violators, AADE inspectors posed as customers seeking to rent out short-term accommodation via the Airbnb platform. The undercover inspections focused on central points in the Greek capital as well as on luxury options available on popular Greek islands. In some cases, AADE authorities even proceeded to book.
According to AADE, 55 proprietors who had not proceeded with the mandatory declaration of earnings from home-sharing services were notified of the violation. A total of 39 came forward and proceeded with corrections to their income tax declarations indicating additional property income of approximately 921,163 euros resulting in over 200,000 euros going into state coffers.
It should be noted that all owners renting out their properties on home-sharing platforms are required by Greek law to declare earned incomes from short-term lease in 2017 on their E2 Forms (column 7) even though the registry has not opened yet.
For income up to 12,000 euros, tax is imposed at a rate of 15 percent. Takings between 12,001 and 35,000 euros will be taxed at a 35 percent rate; annual gains over 35,000 euros at a 45 percent rate. For those offering additional services on the side, the earnings are assessed as income from business activity and taxed at 22 percent for earnings up to 20,000 euros, 29 percent for yields between 20,001 and 30,000 euros, 37 percent for takings between 30,001 and 40,000 euros, and 45 percent for profits exceeding 40,000 euros.