Tips & info for the short-term lease of real estate on Airbnb
Did your grandmother leave you an apartment near a Metro station? You have renovated it, which has helped increase the property value. You are ready to put it on Airbnb promoting our country as a tourist destination while increasing your monthly income. And then those around you start pestering you with questions and comments: “Everyone has put their house on Airbnb, now you want to do it too?”, “There aren’t any more houses in Athens, what will happen to those who are looking to rent long term?”, “Yeah, go ahead with that and get ready to pay the tax». And then you think: – Why isn’t anyone supporting me?
Do not be discouraged. Stand your ground. Do what your heart and your pocket dictate ;-). If you are well organized and informed about all the financial obligations arising from this rental, you have nothing to fear. We are usually afraid of what we do not know; and knowledge is power. We have gathered all information you might need and we are always here to help you!
According to the latest circular of AADE (Independent Authority for Public Revenue) regarding short-term leases (which include Airbnb) the following apply:
The Property Manager – who is the usufructuary – must register the property in the Register of Short-Term Residence Properties and obtain a Property Registration Number (AMA), using the TAXISnet codes. The information required to be granted a Property Registration Number is the Property Identity Number (ATAK). Each property must have its own AMA. However, the same AMA number will be used for all electronic promotion platforms. The AMA must be obtained before the property is promoted to any electronic platforms. If this is violated, the Property Manager risks a hefty fine.
If a property has more than one owners, the rental income is divided based on the co-ownership percentages that each owner holds. If the co-owners have leased the ownership percentages to a Manager (who is a co-owner) and have given said Manager the right to sublease for short-term leases, the Manager is entitled to collect the rents and distribute them accordingly. The “Property Manager” in addition to being a natural person can also be a legal entity, having on its behalf a legal representative or certified accountant.
The total agreed rent includes all charges borne by the lessor. For example, the supply of the digital platform that shall be borne by the landlord, cleaning costs before the tenant arrives at the property, any charges for the use of air conditioning, electricity, wi-fi, etc. Charges that may arise from the digital platform to the lessee are not included in the rent.
Airbnb Taxation: For the year 2018 the tax for the annual income from short-term rentals (furnished without providing any service other than bedding) will be imposed based on the rent tax scale. More specifically said tax scale will be as follows:
- 15% up to 12,000€
- 35% as of 12001€- 35,000€
- 45% over 35,000€