Airbnb in Greece: New 2025 Tax Rules for Short-Term Rentals

Airbnb in Greece: How Short-Term Rentals Will Be Taxed in 2025 – A Complete Guide

The short-term rental market via platforms like Airbnb and Booking has seen explosive growth in Greece in recent years. In 2025, with thousands of properties offered to tourists, the government is introducing a new tax framework aimed at boosting public revenue and ensuring fairer competition with the hotel sector.

What Changes in Airbnb Taxation

According to the latest regulations:

• Mandatory income declaration: All earnings from short-term rentals must be declared to the Independent Authority for Public Revenue (AADE).
• Progressive tax rates:
• Up to €12,000 annual income → 15% tax
• €12,001 to €35,000 → 35% tax
• Over €35,001 → 45% tax
• Deemed VAT: A 13% VAT applies if hotel-like services are offered (e.g., breakfast, cleaning, reception).
• Property cap: From 2025, an individual may rent out up to 2 properties on short-term platforms. For more than 2, business registration is required.

Obligations for Property Owners

Hosts and managers must:

• Register in the Short-Term Property Registry of AADE
• Display the Property Registry Number (AMA) on each listing
• Submit a short-term rental declaration within 20 days after guest departure
• Issue receipts and maintain proper accounting records

Non-compliance can lead to fines up to €20,000.

What It Means for Owners

For small landlords, the new framework reduces net income, as higher tax rates significantly lower returns. Those managing multiple properties must now operate as businesses, facing insurance and bookkeeping obligations.

Impact on the Real Estate Market

The new tax policy is expected to reshape the housing landscape:

• Some owners may withdraw listings from Airbnb and return to long-term rentals, increasing rental housing supply.
• High-demand tourist areas (Santorini, Mykonos, Crete, Athens) will remain attractive, but ownership costs will rise.
• Hotels and traditional lodgings gain a competitive edge, as the tax gap with short-term rentals narrows.

Tips for Smart Management

Experts recommend that property owners:

• Consult with accountants for proper tax filings
• Calculate post-tax profits to assess whether short- or long-term leasing is more profitable
• Consider mixed strategies: long-term in winter, short-term in summer
• Improve service quality to justify higher nightly rates and offset tax burdens

The Future of Short-Term Rentals

The government seeks to balance tourism growth with housing affordability. Despite tighter regulations, short-term rentals remain a key income source for thousands of Greek families and a viable investment tool for both local and foreign owners.

The challenge lies in shaping a sustainable model—one that avoids property concentration in few hands, boosts tax revenue, and protects communities from resident displacement (gentrification).