As part of its slew of measures to deal with over-tourism in the country, Greek authorities are sharing more details about their ban on new licenses for short-term rentals in Athens. Earlier this month, the government announced that property owners who change leases from short-term to long-term won’t have to pay rental tax for three years, as will owners who decide to rent their homes instead of keeping them off the market.
Now, Greece is planning to increase taxes on short-term rentals and ban new licences in three districts of central Athens for at least a year. Like many other European tourism destinations, Greece is seeking to balance a profitable industry fuelled by online platforms such as Airbnb with the needs of locals facing a housing shortage. The ban for new licences on short-term rentals could be extended beyond the initial one year after it takes effect on January 1, 2025.
A daily tax on short-term rentals which helps the country deal with the impact of natural disasters related to climate change will be increased to EUR 8 (INR 744) from EUR 1.5 (INR 139) for the April-to-October period, Finance Minister Konstantinos Hatzidakis said. The tax will rise to EUR 2 (INR 186) from EUR 0.5 (INR 46) for the winter months.
Greece expects its revenue from tourism to hit EUR 22 billion (INR 2,048 billion) this year, a record high according to a government minister. The Mediterranean country, with its crystal-clear waters and pristine beaches, reported record tourism revenue of EUR 20.6 billion (INR 1,918 billion) last year.
(With inputs from multiple news agencies)