These leases constitute a new special category of urban leases for residential use in the form of temporary accommodation, provided that no additional services are provided to the tenants other than the provision of bed linen.
It is worth noting that these leases are differentiated from the leases of tourist accommodation under Law 4276/2014 (including room rental businesses), the leasing of which is carried out exclusively as a business activity and is accompanied by the provision and
Tax obligations are also differentiated under this new type of leases.
More specifically, according to article 39A added to the Income Tax Code (Law 4172/2013), the tax treatment of income from short-term rental of real estate in the context of the sharing economy is as follows:
Income earned by natural persons from the short-term rental of a property in the sharing economy is taxed according to the scale of income from real estate, i.e. as follows:
If the total income exceeds EUR 12,000, a special solidarity contribution is imposed at scaled rates from 2.2% to 10%, depending on the total taxable income of the individual.
For legal entities, the aforementioned income follows the taxation of income from business activity, i.e. it is taxed at
29% from the first euro.
Tenants of short-term rented accommodation are exempt from residence tax, while income earned from short-term rented property in the context of the sharing economy is exempt from VAT.
Since the lessors of rented furnished rooms-apartments are considered to be engaged in business activity, they are subject to both VAT (13%) and accommodation tax in addition to income tax. These landlords are not required to register in the Register of Short Stay Properties as long as they have a Special Operating Sign, which must be posted both on digital short-term rental platforms and on any other means of promotion (e.g. corporate website).
A natural person leases a property through an online short-term rental platform with an annual rent of EUR 15,000.
A. If no additional services are provided to the tenant (income from immovable property):
* According to the Income Tax Code, 5% of real estate income is deducted to cover maintenance/renovation costs etc. incurred by the owners/owners of real estate
Β. If additional services are provided to the tenant (business income):
A natural person leases a property through an online short-term rental platform with a rent of EUR 15,000. Assume that he incurred expenses for the apartment of EUR 2,500.
** In the above taxable income will be calculated in the next financial year and EFKA-OAEE contributions, if applicable.
A separate administrative fine of five thousand (5,000) euros is imposed on the property managers. For each of the following infringements:
Α. Failure to register in the Register of Short Term Properties.
Β. Not prominently displaying the registration number in the Registry of Short Term Properties when posting the property on digital platforms as well as in any other means of display.
Γ. Non-obvious indication of the number of the Special Operating Signal (S.O.S.) in the posting of the Property on digital platforms and in any other means of display, by the Managers, for whom there is no obligation to register in the Registry of Short Term Properties.
A fine of EUR 100 is also imposed in case of late submission of a Short Term Hire Declaration.