Short-term rental of property: When is a permit needed and what the law provides

Short-term rental of properties, whether through platforms such as Airbnb or by private agreement, is a very popular and growing practice in Greece. If you are the owner or manager of the property, it is very important to know what the legislation provides, as well as the differences with tourist accommodations and long-term leases.

It is equally important to know when you need to get a permit from the Ministry of Tourism! This information is necessary so that you can be completely legal and covered.

What is a short-term rental of a property?

A short-term rental is defined as the rental of a furnished property, which has a duration of up to 59 days. The only permitted service that can be offered is the provision of bed linen. In other words, the offering of services such as breakfast or cleaning is not allowed, as in this case it is classified as tourist accommodation.

The rental can be done either through a platform, such as Airbnb or Booking, or directly from an advertisement, from your own personal site, without changing the legal status.

When is a permit from the Ministry of Tourism required?

A permit from the Ministry of Tourism is required if you provide additional services beyond bed linen, such as reception service, cleaning during the stay and the provision of meals.

If these services are provided, the accommodation is considered tourist and then a special operating permit (EOT mark) is required from the Ministry of Tourism and property management is subject to a different legal and tax regime. Of course, in this case, additional services to tenants are also required.

What is the main difference between a long-term and a short-term lease?

The main difference between a long-term and a short-term lease is the duration. If the duration of the lease exceeds 60 days, it is considered long-term even if no formal lease has been concluded.

Not only is a long-term lease not subject to the same restrictions regarding the services offered by the owner or manager, but it also has different tax and legal requirements.

Also, properties that are leased long-term are not necessarily registered in the Short-Term Rental Property Registry.

What should the owner or manager pay attention to?

If you are the owner or manager of a property that you want to exploit through short-term rental, it is important that it is completely legal and meets certain conditions.

Take care of the length of each stay

Each short-term rental should not exceed 59 days.

Only offer bed linen

As much as you want to offer the best services to your tenants, legally you can only provide bed linen, as any other service may classify you as a tourist accommodation.

If you decide that you want to provide other services, then make sure to obtain the necessary permission from the Ministry of Tourism.

Register your property in the AMA

The AMA is the Short-Term Rental Property Registry and all properties rented on a short-term lease must be registered there.

Consult your accountant

Working with an experienced accountant is essential, especially if you are involved in short-term rentals. Your tax obligations may vary depending on the number of properties you own, as well as your legal form, whether you are an individual or a legal entity.

An accountant can guide you correctly regarding your income tax return, VAT liability (if the properties are owned by a company or you are an individual with more than 2 properties), registration with the AMA, as well as any additional fees or contributions that apply to you. This way, you will be able to utilize your property without tax surprises and in full compliance with the law.

Short-term rentals are an excellent opportunity for extra income, however, it is important to do so carefully and in compliance with the law. It is essential to know the basic requirements, as well as if you need a permit, and to consult your accountant for all tax details and any changes. This way you will be able to use your property safely!

Frequently Asked Questions about short-term property rental (FAQs)

What fines can be imposed in case of irregularities in short-term rental?

If the rental is not declared correctly or unauthorized services are offered without the necessary permit, there is a risk of fines being imposed by the AADE or other bodies. Compliance with the legislation is essential to avoid legal sanctions.

What is the deadline for declaring a short-term rental?

The declaration of each short-term stay must be submitted by the 20th of the following month from the guest’s departure, through the myAADE platform. If the reservation is canceled, an amendment declaration is required.

Do I need to register the property with the AMA if I rent it only once a year?

Yes. Regardless of frequency, each property that is rented out for short periods must have a unique AMA number, which must be indicated in all advertisements and listings.