The Greek Independent Authority for Public Revenue (AADE) has launched an extensive crackdown on undeclared income from short-term property rentals, such as those listed on Airbnb, Booking.com, and VRBO. Utilizing sophisticated cross-checking mechanisms and retrospective audits, the tax authority is targeting property owners who fail to report their actual rental earnings, potentially facing steep financial penalties.
At the heart of this effort are advanced algorithms designed to detect discrepancies between reported income and actual earnings from short-term rentals, particularly by private individuals not officially registered as businesses. The goal is clear: uncover unreported income and ensure compliance with tax obligations.
Last year alone, AADE identified 593 taxpayers who had concealed income totaling 8.9 million euros. These individuals were subjected to significant fines and back taxes. This year, the focus is expanding to include owners who rent out more than three properties without registering a business activity—thus avoiding social security contributions and VAT obligations.
Property owners who haven’t obtained or displayed their required Property Registration Number (AMA) on platforms like Airbnb, Booking.com, and VRBO will also face scrutiny, under a cooperation agreement with AADE. Tax data will be cross-checked against platform records, and any discrepancies may trigger further investigation.
Authorities will also review related bank accounts and digital wallets to trace undeclared income.
Stiff Penalties from 2024
As of January 1, 2024, the penalties for non-compliance have become significantly harsher. Property owners who fail to register on the official Short-Term Rental Registry face an annual fine equal to 50% of the gross rental income for the tax year in which the violation occurred. The minimum fine is set at 5,000 euros.
Repeat offenders—those who fail to comply within a year of the initial fine—will see their penalties double.
Source: tovima.com
