Airbnb: its owners appeal to the Supreme Court to impose taxes – Economic Post

A ‘war’ has broken out between landlords and the government over impending changes to short-term rentals (Airbnb).

In the autumn the government will open up short-term rentals, mainly about financial arrangements, including incentives for owners to make their homes available for long-term rentals rather than listing them on short-term rental platforms.

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Controversy over Airbnb

Prime Minister Kyriakos Mitsotakis gave an indication of the government’s intentions, stressing that a cap on Airbnb usage days was being considered.

“This is something that we will discuss and study very systematically,” Mr. Mitsotakis noted, referring to the measures related to short-term leases that are being considered.

“We will also see how much time we should allow in total during the year for a property to be rented through Airbnb-type platforms. We are studying it because it is a complex issue,” Mr. Mitsotakis said.

For his part, the President of Pomeda Stratos Paradias spoke after that The government’s move to ban any property being rented short-term for more than 90 days a year will see thousands of landlords paid out in “black money” in the coming months and force them to evade tax, the government says.

Short Term Property Association (STAMA) sources speak to her after that Their goal is to protect the market from recent government tax regulations.

According to the information, entrepreneurs in the short-term rental sector have filed an appeal with the Supreme Court, and it is expected to be heard in the next few days. The appeal concerns the provisions of the Circular according to which any property that is the subject of exploitation is considered a tax branch and therefore subject to a claim fee.

It should be noted that based on the AADE Circular, if a legal person manages 10 properties through short-term rental contracts in different parts of Greece, you will pay 10 business fees. If, for example, the legal entity manages 10 properties in a residential building in Plaka, it will pay a registration fee.

The market is reacting strongly because it is not possible for every property that is not in the same building to be subject to a claim fee and be considered a branch.

It is noteworthy that the registration fee is 1,000 euros for legal entities and 600 euros for each branch.

Airbnb “paradise”.

Mr. Paradias did not fail to mention the commercial triangle in Athens. “It is a tourism paradise,” he said characteristically.

The Business Triangle of Athens stands out as the most popular area to host short-term rental accommodation (Airbnb), based on the strong upward trend of supply compared to last year.

In the midst of the crisis, as Mr. Paradias mentioned, many shops and offices located in the commercial triangle of Athens were closed. The area now has a very high concentration of Airbnb accommodation and it is clear that there is a significant shift in investors towards purchasing and exploiting properties in the area.

The commercial triangle includes areas such as Psiri, Acropolis, Monastiraki, and Plaka, which are considered a magnet for foreign visitors, in terms of their places of residence.

What’s in store for Airbnb?

The proposed scenarios provide for the establishment of time, numerical and geographical restrictions on short-term rental in implementation of the provision that has already been voted on by Parliament.

In this context, the following is taken into consideration:

• The lease for each property may not exceed 90 days per calendar year and, for islands with a population of less than 10,000, 60 days per calendar year. An override is permitted if the total income of the lessor or sublessor, from all properties available for rent or sublease, does not exceed €12,000 during the relevant tax year.
• Allow no more than two short-term rental properties per beneficiary’s Tax Identification Number (TIN) of income.
• Setting a ceiling on the number of properties that will be rented on a short-term basis for each municipality, with the competent authorities stating the need to determine housing needs, the amount of rent, and the number of properties available for short-term rent registered in each area.

According to reports, any changes that are pushed will be made after the summer season so that the industry is not disrupted. This means that this summer will likely be the last that the sector will operate under the current system.