Greece to Raise Stayover Tax at Hotels, Charge VAT to Airbnb Hosts
The “stayover tax”, which is charged to guests at hotels in Greece, will soon see an increase, according to Greek Prime Minister Kyriakos Mitsotakis.
Speaking at the 87th Thessaloniki International Fair (TIF) on Saturday, Mitsotakis presented his government’s objectives and focused on measures to assist the Greeks affected by the recent floods in Thessaly caused by Storm Daniel.
During his speech, he announced that a further 300 million euros will go towards a special fund to tackle the effects of climate change.
“The climate crisis is here and forces us to see everything differently,” the Greek PM said, adding that the government will once again stand by the side of those affected by natural disasters.
Revenue from ‘stayover tax’ rise to go to natural disaster reserve
“We have already created a special reserve for natural disasters of 300 million, which from 2024 will reach 600 million euros. The additional 300 million euros will come from the increase in the daily accommodation tax from one to six euros, especially in luxury hotels,” he said.
Ιn force since January 1, 2018, the “stayover tax” is imposed on hotel guests for the daily use of rooms in hotels or lodgings (rooms/apartments to let). The stayover tax foresees a surcharge of 50 cents at one- and two-star hotels, 1.50 euros at three-star hotels, 3.00 euros at four-star hotels and 4.00 euros at 5-star hotels.
New tax regulation for Airbnb-style rentals in Greece
Further into his speech, the Greek PM announced economic measures, plans to combat tax evasion and also measures to deal with the inflation crisis, which includes a new tax regulation concerning short-term accommodation rentals.
“We want short-term rentals, it is a competitive product that supports the Greek economy and the income of property owners, but it is an activity that in various regions of the country has shot up rents and distorted competition, especially in tourism,” the PM said.
Mitsotakis then announced that those with income from three or more Airbnb properties, as of January 1, 2024, will be subject to value-added-tax (VAT) and fees applicable to hotels and rooms for rent.
The charge of VAT on Airbnb-style rentals in Greece is one of the requests of the Greek Tourism Confederation (SETE) in its to ensure fair play in the tourism sector. Representing the majority of Greece’s tourism enterprises, SETE for some time has been calling on the government to amend the law that covers short-term rental operations in order to protect tax-paying hotels.
Other measures to deal with the inflation crisis, announced by Mitsotakis during the 87th TIF in Thessaloniki, include an increase in the tax-free threshold by 1,000 euros for families with children and the introduction of the “Youth pass” scheme, which sees 150 euros go to some 200,000 beneficiaries aged 18 and 19 for tourism, transportation and cultural activities.
Regarding economic measures, the PM said a new increase in the minimum wage will take place from April. Pensions will also see a new annual increase in January and the salaries of public sector employees will rise by 10.5 percent as of January 1,2024.
Mitsotakis added that new measures will also be taken to maintain stable and reduced prices in basic products.
That’s quite funny coming from someone living in the States, where you have a city tax put on the cost of every hotel bill!! Not that I think either are correct!
I am a frequent visitor to Greece and stay at hotels every time. It makes no sense to have a stay over tax!! Isn’t this why we pay a price to stay at a hotel? To STAY OVER. This tax is a turn off for tourists. Built it into the price and don’t nickel and dime the public!
Olympia Pilafidis
California, USA