Greek Ministry of Tourism is working on the new regulatory framework to control the short term rentals market
Short-term rentals may result in significant losses of public revenue due to the way they are taxed.
The Greek Ministry of Tourism is working on the new regulatory framework to control the short term lease market such as Airbnb.
The new framework aims at segregate those who strategically rent many properties from the majority that usually engages in rentals of one or two properties. As mentioned by the Minister of Tourism, Vassilis Kikilias, during the work of the Hellenic Chamber of Hotels held yesterday, November 14, the framework that is being considered may be fiscal.
According to data unveiled by a Grant Thornton study, "Short-term Rentals: Effects on Cities and Citizens" that was presented during the conference,
->Tourism spending via sharing economy is growing at a rapid rate of 15% per year. In 2022, it reached 14% of the total tourism expenditure, a size that cannot remain without a regulatory framework.
The average price of short-term rentals is 5 times higher than that of long-term rentals, creating strong incentives for landlords to put their properties on the short-term market, creating acute housing problems. Of course, the amounts are not directly comparable as the price of the short-term lease includes the operating costs, although the difference is recorded overwhelmingly in favor of the properties that are leased as accommodation.
->Short-term rentals may result in significant losses of public revenue due to the way they are taxed. In 2016, public revenue losses reached €160.6 million. In 2022, the estimate for public revenue losses amounts to €316.7 million. That is, a doubling of net public revenue losses during the period 2019-2022.
->Short-term rentals deprive the creation of an additional 39,000 jobs annually.