Narrowing margins for properties with short-term rentals
Property owners utilizing short-term rental arrangements in Greece must finalize their financial details for the year 2025 by the end of February to avoid significant tax penalties.
In Greece, property owners who utilize short-term rental systems have until the end of February to finalize their financial reporting for the year 2025 in the Short-Term Rental Registry maintained by the Independent Authority for Public Revenue (AADE). This process is crucial as it entails reviewing and correcting any discrepancies in the reported income from short-term rentals that were earned in 2025, ensuring compliance with tax regulations to avoid potential fines and tax liabilities.
The details submitted in the registry will directly influence the amount of tax homeowners must pay for the incoming year. Specifically, those failing to verify their information risk being taxed on the entire amount of their reported income, even if those earnings have not yet been collected. This situation underscores the need for diligent record-keeping and timely reporting from property managers to maintain financial health and legal compliance in their rental businesses.
Additionally, the guidelines allow property managers to amend erroneous entries without incurring penalties or altering their Property Registration Number (AMΑ). This flexibility affords some leeway to property managers as they work to ensure their submissions are accurate. Ultimately, ensuring precise reporting is not only beneficial for tax assessments but also serves to stabilize the overall short-term rental market in Greece, which has seen substantial growth over the years.