What is the Greece STR Tax Reform?

Join the Lodgify newsletter

Once a month, get free templates, expert tips for hosts, industry news, webinar invitations, and more.

Subscribe

I agree to receive commercial communications from Lodgify.

How it works

The reform operates by creating a tiered system based on the number of properties an owner rents out. Owners with one or two properties continue to be taxed as individuals on their rental income but must collect and remit the new climate crisis fee.

Those with three or more properties are reclassified as business operators. This reclassification requires them to charge VAT on bookings, file income tax as a sole proprietorship, and pay increased social security contributions.

All STR properties must still be registered on the Independent Authority for Public Revenue (AADE) platform to obtain a unique registration number (AMA).

Why it matters

This reform significantly impacts the financial and administrative responsibilities of short-term rental hosts in Greece. It increases the cost of doing business, especially for hosts managing multiple properties, requiring more formal accounting and tax compliance.

For the Greek government, it aims to create a more equitable competitive environment between STRs and the traditional hotel industry while increasing tax revenue. Hosts must understand and adapt to these new rules to ensure their operations remain legal and financially viable.

Examples

• A host who owns and manages four apartments in Crete for short-term let is now required to register as a sole proprietorship. They must start charging VAT on their booking revenue and make social security contributions based on their income.
• An individual who owns a single villa in Santorini lists it on Airbnb. Under the new reform, they must collect a 'climate crisis resilience fee' of €10 per night from guests during the high season (March-October) and remit it to the tax authorities.
• A couple owns two separate holiday flats in Athens. Because they own fewer than three properties, they are not required to register as a business or charge VAT, but they still must declare their rental income and collect the appropriate climate resilience fee.
• A property owner attempts to list a new apartment for short-term rent without first registering it on the AADE platform. They are subject to a significant fine for non-compliance and are prohibited from renting the unit until they obtain an official registration number.