Short term renting (Airbnb, Booking…)

In Greece there two ways to rent a property in short term. In both cases the person that will rent the property must have the legal right to do it. He/She must be the owner or has to rent it with the right to rerent it.

So a property can be rented by a business or a private citizen. The properties of each way are the following:

Business

  1. The business can provide services to the clients
  2. The VAT of the expenses is discounted from the tax
  3. The expenses are discounted from the tax
  4. The business can issue invoices
  5. The business pays tax which is calculated by the net profit1*,2*
  6. The business pays VAT tax3*
  7. The business pays residence tax which is 0.5€ per room per night or rent
  8. The accounting cost is moderate to high

Private citizen

  1. He/She can only provide services of sheets and blankets (no cleaning)
  2. The property can be rented only for 60 days or until the amount of 12.000€ of total rents
  3. He/She has the obligation to declare the rents of each month until the end of the 20Th of the next, on an online platform, maintained by the Greek government.  
  4. The tax is 15% of the total amount of rents
  5. The VAT of the expenses is not discounted from the tax
  6. The expenses are not discounted from the tax
  7. He/She can not issue invoices
  8. The accounting cost is low

1*:net profit = revenue(total rents) – expenses
2*: tax = income tax (from 22%) + social security EFKA (from 2.000€ per year) + municipal tax (0.5%)
3*: VAT tax = 13% for renting service and 24% for the rest of services (for example breakfast) 

The key factors for the decision between business or private citizen

Are he/she will provide services to clients?

Then you have to start a business.

Are the property going to be rent for more than 2 months?

Then you have to start a business.

Are the total rents going to be more than 12.000€ per year?

Then you have to start a business.

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