Taxes for rent in Greece
Since Greece is a popular tourist destination, the demand for real estate rental here is consistently high. You can rent property yourself or through the management company.
According to the “Numbeo rating”, one-bedroom apartments in the center of Athens are for long-term rent costs from €500 per month. According to the analytical edition of the Global Property Guide, the average yield from long-term rental housing is 4–5% per annum, and short-term rentals can earn up to 6–8%.
To rent the house no matter short-term or long-term, it is necessary to sign a rental agreement between the owner and the renter. And then carefully pay taxes with profits.
The tax rate depends on income
| Income | Tax rate |
|---|---|
| Less than €12.000 per year | 15% |
| €12 000 – €35 000 per year | 35% |
| More than €35.000 per year | 45% |
Greek law does not prohibit renting out housing independently. For short-term rentals, many owners use the specialized platforms Airbnb and Booking.
Attention!The owner is obliged to register the object in the Register of short-term rentals and obtain to have a special license number from the Greek National Tourist Organization, which must be indicated in the advertisements. Local tax authorities must be notified of the fact of self-renting the property. Violation of short-term rental rules is subject to arrest, court appearance and a fine of up to €50,000.
Important! The law does not provide for restrictions on the number of days for short-term rental per year, however, for each short-term rental booking, a limit of 60 days is established.
Owners who manages three or more real estate objects and rent them out for short-term rent, from 2023 are obliged to pay value added tax (НДС) – 13% of profit.
Also, owners of short-term rental properties are required to pay a special "green fee" of €1.5 per day of accommodation and an additional accommodation tax of 0.5% of the rental price.
Rental by management company
If you are not going to live in your Greek house permanently, you can find property manager or a management company. A real estate agency can recommend the company.
In Greece there is a large selection of specialized management companies that deal with property maintenance and renters search. The representatives of these companies conduct a detailed price analysis for a specific object, promote it on the rental market, and subsequently monitor the condition of the housing, and charge renters. The cost of the company's services for a long-term rental is the size of 1-1.5 months of rent. For short-term rentals, the manager takes 20–30% of the profit.
Please note
- The cost of the services of management companies in Greece is 8–10% of the rent for a long-term lease and 20–30% for a short-term lease.
- Rent yearly Income depends on the location and type of the object, but in average across the country it is about 4–6% per year.
- When then the property is used for short-term rent, the owner must register the object in the Short-term Rental Register and obtain a special number that must be indicated in the ads. The rate of tax on income from rent varies depending on their size – from 15 to 45%.
