Greece to tax Airbnb rentals up to 45% - draft law

Income from short term property rentals through platforms such as Airbnb will be taxed by up to 45%, according to a draft bill submitted to parliament earlier this week.

Short term rentals have provided Greek real estate with a key source of demand due to the country's strong tourism industry as high unemployment and low disposable income keep the residential housing market in the doldrums.

The bill, expected to be voted on Thursday, says that income from the short term leasing of lodgings will be treated the same as any other income derived from property. This means that income up to 12,000 euros is taxed at 15%, and income between 12,001 euros to 35,000 euros is taxed at 35%. Income above 35,000 is hit with a 45% tax.

In the event that the short term rentals includes other services, such as breakfast, then this will be treated by the tax man as a business activity and a 29% tax rate will apply.

The tax will be effective for money earned as of the start of January, 2017, and is forecast to earn the government 48 million euros in revenues.