Greece’s federation of property owners, known by its Greek-language acronym of POMIDA, this week charged that the government is attempting to impose what called “predatory” tax rates on short-term leases, essentially an “AirBnB tax”.
According to the nationwide group, an individual taxpayer who leases out a private property (like an apartment, villa or even a single room) will be taxed cumulatively by including all other rental properties that the former exploits along with whatever other annual income.
For instance, with a total annual income of up to 12,000 euros, a taxpayer would pay 15 percent; 35 percent from 12,001 to 35,000 euros and the “Scandinavian” figure of 45 percent for gross annual income exceeding 35,000 euros.
As such, a property owner leasing out a single lodging and with an annual income in the highest bracket from other economic activities – exceeding 35K – would see a 45-percent tax imposed on every euro generated from the leasing.
However, if a so-called “solidarity tax” is tacked on, which the owners’ federation said is the case, then the highest “AirBnB” tax slapped on short-term rental property reaches 55 percent. The rate also doesn’t include the annual property tax – the unpopular ENFIA regime – that the current government kept squarely in its place after signing the third memorandum in the summer of 2015.
The only consolation is that the stratospheric 23 percent VAT rate isn’t imposed on such rentals.
Owners of such short-term lease properties are also obliged to register their particulars on a relevant finance ministry webpage.
Critics of the latest Draconian tax measures aimed at such holiday rentals have pointed out the difficulty in actually tracking down and taxing transactions between private citizens in Greece with foreign holiday makers who “connect” via electronic platforms – i.e. AirBnB – and given that payments are often deposited in overseas bank accounts.
