Taxation of Accommodation
As of 1.1.2018, the income earned by an individual from the short-term lease of a property with Airbnb is an income from real estate, provided that the property is rented furnished without the provision of any service other than the provision of bed linen.
How will the income from Airbnb be taxed?
In this case the rents are taxed on the following scale:
for income up to 12,000 euros with 15%,
for income from € 12,001 to € 35,000 with 35%
the excess income by 45%.
If any other services are provided, this income will be treated as income from business activity and is taxed at 22% up to the first 20,000 euros, 29% in the segment from 20,001 to 30,000 euros, 37% in the segment from 30,001 to 40,000 euros and 45% in the section over 40,000 euros.
Income from Airbnb is exempt from VAT, so it is not possible to offset or refund the VAT charged on the property's costs. Also, this income, as income from real estate, is not subject to insurance contributions.
From New Year's Eve, short-term leases to be concluded via digital platforms for a specific duration of less than a year should be reported by the "manager" to the relevant electronic application of the AAD, namely the Short Term Real Estate Registry, where the "manager" registration per leased property.
In a circular of the Governor of the Independent Public Revenue Authority, George Pitsilis, it is foreseen that when registering, the details of the manager, the beneficiaries of rental income and the property data should be reported.
If registration is not recorded, if the registration number in the register or the special function signal number is not shown on digital platforms and on any other media, a fine will be imposed on the administrators.
Those who do not discipline the law and are not registered in the real estate register of the ΑΑΔΕ will be faced with a fine of 5,000 euros, which will double to 10,000 euros if the same offense is committed in one year.