The market estimates that the government’s incentives to property owners to “turn” them from short-term rental (Airbnb) to long-term will have a limited impact on the housing crisis plaguing the country.
Market circles “see” about 10% of properties returning to traditional long-term leases, which translates to 12-15,000 properties nationwide given that Airbnbs in Greece approach 120,000.
At a time when the housing crisis, squeezed incomes and unaffordable rents are hitting tenants mercilessly, the government is trying to provide solutions with targeted interventions, although it is doubtful whether the effects of an issue that tends to take on uncontrollable dimensions and for the which the financial staff unnecessarily idled for a long time, with prices skyrocketing.
The interventions that unfolded at the 88th TIF shape a new landscape in Real Estate with real estate owners winning and losing depending on which path they choose.
“The problem is low wages”
“I estimate that 10-15% of Airbnb properties (12-15,000) nationwide will be allocated to long-term leases, the incentives that have been given to return to long-term leases are strong but this will not solve the housing issue. The problem today is low wages, not homes that don’t exist. If you search at the moment in Athens on platforms for long-term leases, there are about 6,500 properties available, houses exist but they are too expensive for the average Greek. Airbnbs in the capital are estimated at around 12,500”, notes the president of the Panhellenic Association of Property Managers, Andreas Chiou.
“In Athens there is a great demand for houses from abroad, about 20,000 foreigners come and work remotely, they can pay the rent prices as they have foreign salaries, I insist that the problem is not in the low supply of housing but in the very low wages. Nor will the ban on new Airbnb licenses in central areas of Athens significantly reduce rents,” he emphasizes.
Winners and losers
It is noted that today rental income is taxed at rates of 15%-45%. Specifically, the first 12,000 euros of income are taxed at 15%, in the range from 12,001 to 35,000 euros the rate is 35% and incomes from 35,000 euros and above are taxed at 45%.
With the announced changes, an owner who had his property on a short-term lease and received 20,000 euros, paid the tax office 4,600 euros, with the net amount being 15,400 euros. Of course, from this amount he also paid some for the cleaning of the property and the cleaning of the bed linen.
In the event that he switches to long-term and leases it for 1,000 euros per month, he will receive 12,000 euros for the time. His tax will be zero for three years. In other words, he will save 1,800 euros a year.
Of course, again, the profit he has by making the property available for short-term leasing (15,400 euros), even with the tax he gives to the tax office, is greater, by 3,400 euros, than making the property available for long-term leasing.
Income tax exemption cutters
There are three conditions for the owners of closed properties, who will make them available for long-term lease, to have the three-year exemption from income tax.
1) The properties must have been closed for three years.
2) To be rented until the end of 2025.
3) To be up to 120 square meters.
From this specific measure (it applies exclusively to properties owned by natural persons and not businesses) it is estimated that there will be a loss of revenue of approximately 3 million euros for 2025 and 13 million euros per year for the years 2026-2028.
Where does the brakes come on in Athens?
It is recalled that throughout the center of Athens (Koukaki, Thisio, Petralona, Pagrati) up to Neos Kosmos, the issuing of new licenses for owners who want to enter the short-term rental platforms stops for one year.
More specifically, from 1/1/2025 no new short-term lease will be allowed for one year, with the possibility of extension for
The 1st municipal district of Athens that includes the center of Athens with the so-called commercial triangle (Stadio-Omonia-Plaka).
The 2nd municipal district of Athens which includes the SE districts from Neo Kosmos to Stadio.
The 3rd municipal district of Athens which includes the SW districts of Asteroskopiou, Petraloni, Metaxourgeiou and Thisiou.
The brake concerns, in other words, areas such as Neos Kosmos, Pagrati, Kerameikos, Metaxourgeio and especially the historical center of Athens (Syntagma Square, Omonia Square, Exarchia, Hautia, Herodos Attikou, Paneseptiou, Stadiou, Patision, Alexandras Avenue etc. .etc.).
In the current year, it is estimated that the income from short-term leases will exceed 5 billion euros nationwide with significant benefits for the state and the economy.
SOURCE: ot.gr
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