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The government is proposing a new plan to limit short-term rentals – Airbnb-style. From January 1, 2025, restrictions will be introduced in the three apartments of Athens for one year, with a “freeze” of permits.
In practice, there will be no room for those interested to issue an AMA (Property Registration Number) for properties located in the 1st, 2nd and third apartments, which have been “flooded” by this type of accommodation, causing suffocation in the real estate market.
Already, property owners are racing to complete renovations on their properties, with many looking to obtain AMAs by the end of December in order to make their property available for short-term rental by 2025.
With the new framework, the operation of new accommodation is “prohibited” from January 1, 2025 until December 31 of the same year.
In the framework of the Prodexpo conference, the Economic Advisor to the Prime Minister, Alexis Patelis, had quoted a series of data on short-term leases, according to which 100,000 residences have a unique AMA and are leased on a short-term basis, with 40,000 AMAs having been added in the last four years.
“Of these 100,000 AMAs, 1/4 rent them for at least 90 days a year, which is why we finally decided not to institute a time limit.” As he had explained, 80,000 belong to natural persons, of which 4/5 are rented for less than 90 days. Accordingly, 20,000 belong to legal entities, with at least half being leased for more than 90 days, which is why the framework for legal entities has been tightened.
Airbnb: The no-go areas
The ban on the creation of new AMAs will concern areas such as the historical center, Koukaki, Plaka and Exarchia, located in the 1st municipal district, Pagrati, Zappeio, Mets and Neos Kosmos, located in the 2nd municipal district, but and places such as Thisio, Petralona, Metaxourgeio and Botanikos, located in the 3rd municipal district.
Those identified through the Short-Term Rental Registry or from the data sent to AADE by the digital platforms Airbnb, Booking and Expedia Group/VRBO, or those found following cross-checks and checks by AADE, will be asked to pay a fine equal to 50% of the income up to the control with a minimum amount of 20,000 euros, while in case they fall victim to the same offense again, the fine will be equal to the amount of rent collected, with the minimum amount not being less than 40,000 euros.
These changes come at a time when there is an acute housing crisis, with properties for rent decreasing and prices skyrocketing, as a result of the rapid and often unregulated spread of short-term rentals.
According to Grant Thornton’s study on the sharing economy, in 2023 the number of short-term rental homes throughout Greece reached 200,000. These provided approximately 857,000 beds (an average of 3.5-4 beds per property), serving a total of approximately 102 million. overnight stays (a third of the total), compared to only 38.5 million in 2019.
The closed properties
Those who decide to open their foreclosed properties or convert short-term leases to long-term ones will have to meet three conditions in order to win the three-year income tax exemption.
Thus, they should meet the following conditions:
- The property must be closed for at least three years. The data will be taken from the tax office’s E2 form.
- The property should not exceed 120 square meters.
- They should be opened between 8/9/2024 and 31/12/2025.
Source: OT.GR
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As a professional editor for the website world-today-news.com, I would like to publish an interview with two guests discussing the impact of the proposed government plan to limit short-term rentals in Athens. The interview will be divided into two sections, covering the implications of the plan for Airbnb hosts and the possible effects on the rental market in Athens.
Section 1: Impact on Airbnb Hosts
Interviewer: Good morning, welcome to our show. Today, we have Ms. Eleni Dimitriadi, who owns an apartment in the heart of Athens and rents it out through Airbnb, and Mr. Nicholas Papadakis, a real estate expert from Greece. Thank you both for joining us.
Eleni Dimitriadi: Thank you for having me.
Nicholas Papadakis: My pleasure.
Interviewer: The Greek government has proposed a plan to limit short-term rentals in Athens. What is your initial reaction as an Airbnb host, Ms. Dimitriadi?
Eleni Dimitriadi: Honestly, I’m very disappointed. I’ve been renting my apartment for the last five years and it’s been a great source of extra income. The plan will have a huge impact on people like me who rely on short-term rentals to make ends meet.
Nicholas Papadakis: I can understand your concern, Eleni. However, as a real estate expert, I believe this is a necessary measure to address the housing crisis in Athens. The rapid spread of short-term rentals has led to a decrease in long-term rental options and caused rental prices to skyrocket.
Interviewer: What are your thoughts on the new restrictions, Mr. Papadakis?
Nicholas Papadakis: Well, the government is trying to strike a balance here. They’ve introduced a temporary ban on new AMAs (Property Registration Numbers) in certain areas, while also offering incentives for those who wish to convert their short-term rental properties into long-term ones. It’s a bold move and I think it will help regulate the market.
Interviewer: Do you think these incentives will be effective, Eleni
