You are reading page Arrangements for short-term rental real estate in the context of the sharing economy
«Article 111
Arrangements for short-term rental real estate in the context of the sharing economy
1. For the purposes of this Article, real estate means:
a) the apartment,
(b) the detached house, with the exception of detached houses which have been designated as such due to the abolition of the horizontal property establishment;
c) any other form of building with structural and functional independence;
d) rooms inside apartments or houses.
Sharing economy is defined as any model where digital platforms create an open market for the temporary use of goods or services that are often provided by individuals.
Digital platforms are defined as electronic, bilateral or multilateral markets, where two or more groups of users communicate via the Internet through the platform administrator in order to facilitate a transaction between them.
Short-term lease is defined as the lease of real estate concluded through digital platforms for a specific period of time, less than one year.
A short-term lease property manager (hereinafter referred to as “property manager”) is a natural or legal person or any legal entity that undertakes the process of posting a property on digital platforms for the purpose of short-term lease and generally takes care of the short-term lease. A property manager can be either the owner of the property or the nominee or the usufructuary or the lessor or a third party.
2. The possibility of short-term lease of real estate is provided, through digital platforms in the context of the sharing economy, under the following conditions:
a. The property manager must have been registered in the “Register of Short-Term Residence Properties” kept by the Independent Public Revenue Authority (A.A.D.E.).
b. The registration number in the Register of Short-Term Residence must accompany the posting of the property, in a visible place, on digital platforms, as well as on any media.
c. In cases where property managers have a Special Operation Mark (ESL) in accordance with the provisions of articles 1 to 4 of Law 4276/2014 (AD155) and par. 5 of Article 46 of Law 4179 / 2013 (AD175), are not obliged to register in the Register of Short-Term Residence Properties, but have the obligation to indicate, in a visible place, the number of the Special Operation Signal (ESL) when posting the property on digital platforms, as well as on any media.
The entry in the Register of Short-Term Residence Properties is made per rented property.
3.a. The income obtained under the provisions of article 39A of law 4172/2013 (AD167) is exempt from VAT.
b. The property manager who does not have a Special Operation Signal (ESL) is obliged to submit a Short-Term Residence Declaration, in an electronic application that will be created by A.A.D.E. and does not submit Real Estate Lease Information Statements.
The persons of par. 5 of the article are also subject to the same obligation to submit a Short-Term Residence Declaration. 46 of Law 4179/2013.
4.a. The owner of the property or the nominee or the usufructuary or the lessor, if he assigns to a third party the management of his property for the purpose of short-term lease, is obliged to submit a Real Estate Lease Information Statement in which he will enter the details of the property manager. In case of non-submission, it is considered the same property manager.
b. In case of co-ownership of a property, when the manager of the property is one of the co-owners, the other co-owners are not obliged to submit a Declaration of Real Estate Lease Information.
c. The owner of the property or the nominee or the usufructuary or the lessor if he leases a property with the right of subletting is still obliged to submit the Real Estate Lease Information Statement, in accordance with the existing provisions.
5.a. In case of non-compliance with the conditions set out in paragraphs 2 and 8, an independent administrative fine of five thousand (5,000) euros is imposed on the property managers. The fine constitutes public revenue, is imposed and collected in accordance with the provisions of K.E.D.E. from the A.A.D.E .. From the finding of the violation the manager of the short-term leased property is obliged within fifteen (15) calendar days to take the necessary compliance actions. In case of non-compliance with the conditions of paragraphs 2 and 8, within one year from the issuance of the act imposing the fine, this fine shall be imposed in double and in case of each subsequent same violation, in four times the amount originally imposed.
b. In case of non-submission or submission of an inaccurate Short-Term Residence Declaration, the real estate manager is fined equal to twice the rent as it appears on the digital platform on the day of the audit.
c. In case of overdue Short Stay Declaration, an independent administrative fine of one hundred (100) euros is imposed.
d. In case of non-response to the request of A.A.D.E., according to paragraph 7, the fines of cases cd and dd of par. 2 of article 54 of law 4174/2013 (AD 170) are imposed .
6. For the application of this article, audits may be carried out by joint inspection teams consisting of employees of A.A.D.E. and the Ministry of Tourism. In addition, the assistance of the Financial Police may be requested.
7. The A.A.D.E. may request from any digital platform, which is active in the sharing economy, any information that is necessary for the identification of the property managers, as well as the properties posted on them.
8. By joint decision of the Ministers of Economy and Development, Finance and Tourism, for reasons related to the protection of housing, geographical areas may be designated, where restrictions will be placed on the availability of real estate for short-term lease as follows:
a. The short-term lease of more than two (2) properties per TIN should not be allowed. income beneficiary.
b. The lease of each property should not exceed ninety (90) days per calendar year and for islands with less than ten thousand (10,000) inhabitants sixty (60) days per calendar year. Exceeding the duration of the previous paragraph is allowed, provided that the total income of the lessor or sub-lessor, of the total real estate available for lease or sublease, does not exceed twelve thousand (12,000) euros during the relevant tax year.
9. By joint decision of the Ministers of Finance and Tourism and the Governor of A.A.D.E., the terms of cooperation of the Greek State with the respective digital platform are defined.
10. By decision of the Commander of A.A.D.E. the details for the entry into force and operation of the Register of Short-Term Residence and for the process of submitting the Short-Term Residence Declaration, the audit, the bodies for imposing the sanctions of paragraph 5, as well as any other necessary details for the application of this Article. “
Income from short-term real estate leasing in the context of the sharing economy
1. The income obtained, from natural persons, from the short-term lease of real estate of the sharing economy, as it is defined in article 111 of law 4446/2016 (AD167), as in force, is income from real estate and the provisions apply of article 39 and par. 4 of article 40 of law 4172/2013 (AD 167), as in force, if the properties are rented furnished without the provision of any service except the provision of bed linen. In case any other services are provided, this income is income from business activity of article 21 of law 4172/2013, as in force.
2. Income obtained by legal persons or legal entities from the short-term lease of real estate of the sharing economy, as defined in the previous paragraph, is considered income from real estate.
3. The provisions of the previous paragraphs apply to income earned from the tax year starting from 1.1.2017 onwards. “
