Previous Story
Greek Authorities Pull in Tax-dodging Airbnb Proprietors
Posted On 09 Apr 2019
Comment: 0
Tag: Airbnb, Airbnb Athens, Airbnb Greece, apartment leasing Greece, Athens accommodation, Greece accommodation, Greece bailout, Greece crisis, Greece home rentals, Greece tourism, Greece tourism ministry, Greece tourism news, Greece tourism rentals, Greek Finance Ministry Airbnb hosts, Greek National Tourism Organization, Greek news, Greek Tourism Confederation, Hellenic Chamber of Hotels, hospitality sector Greece, housing laws Greece, Independent Authority for Public Revenue (AADE), leasing, Property owners in Greece, renting, shadow economy accommodation, sharing economy, Short-Term Rentals, short-term visitors, tourism accommodation, tourism accommodation laws Greece, underground economy
Tax authorities in Greece have reeled in 38 Airbnb owners who failed to declare some 23,222 euros in earnings from home-sharing practices in 2018.
Following cross checks of 2018 tax declarations, Greece’s Independent Authority for Public Revenue (AADE) said it had also found 600 foreign nationals owning properties in Greece, who had failed to declare the real estate on the mandatory Ε9 tax form and to pay property tax. Of the 1,092 violators, 55 percent came forth and complied paying a total of 253,301 euros.
AADE ran the first phase of a pilot program aiming to weed out violators in 2018 seeking to identify foreigners who did submit E9 statements for new real estate owned in Greece, among others.
According to AADE, tax officials also cross checked the E2 and E9 statements of 464 taxpayers with a compliance rate of 15.3 percent, identified legal entities that did not file E9 declarations with a 27.4 percent compliance rate, and collected ENFIA property tax amounting to 414.899,33 euros.
All owners renting out properties on home-sharing platforms in Greece are required by Greek law to declare earned incomes from short-term lease in 2018 on their tax forms.
Photo source: Region of Attica
Until now for income up to 12,000 euros, tax is imposed at a rate of 15 percent. Takings between 12,001 and 35,000 euros is 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, 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.
In relevant news, 2018 saw a 42 percent rise in property transfers compared to 2017, indicating that the Greek real estate market is recovering in large part due to the Airbnb phenomenon.
