As of January 1, 2024, significant changes have come into effect in Greece
regarding the operation of Airbnb, and these changes are expected to have a
noticeable impact on the market. Let’s delve into the alterations that have taken
place and explore the expectations associated with them.
- Equivalence with Hotels for Professional Operators: According to the new
regulations, professional operators managing three or more short-term rental
properties are now almost equivalent to hotels, with only a few differences, such as
the absence of the need for a license. This regulatory shift could have significant
consequences for property owners. - Reporting and Taxes: Property owners will now have to grapple with increased
paperwork, as reporting, receipts, payment of tourist tax, fines, legal aspects, and an
additional 13% VAT are now mandatory, mirroring the requirements for hotels.
Expectations:
- Transition to Long-Term Rentals: Faced with increased responsibilities and costs,
many Airbnb property owners may opt to transition to long-term rentals, especially if
short-term rental revenues become critically low. - Increased Supply in the Long-Term Rental Market: An increase in supply in the
long-term rental market is possible, potentially temporarily boosting supply and
affecting rental prices as owners transition from the short-term sphere. - Rise in Short-Term Rental Prices: In response to new tax obligations, many Airbnb
property owners may raise rental prices, at the very least to offset the added VAT. - Growth in Airbnb Demand in Greece: In the face of decreasing real incomes in
other parts of Europe, Greece may become a more attractive and affordable tourist
destination. This could lead to an increased demand for short-term rentals through
Airbnb. - Optimal Moment for Rental Price Increases: With a growth in demand during the
tourist season (April-October) and a portion of property owners leaving the short-
term rental market, there might be a favorable moment for a healthy increase in
rental prices.
Conclusion:
Considering these changes and expectations, the Airbnb market in Greece in 2024
could undergo significant transformations, necessitating careful attention and
adaptation from property owners and investors alike.
