1. Changes in Real Estate Transactions
- Mandatory use of bank transfers: Cash payments for deposits or full payments are prohibited, in accordance with Article 10 of Law 4818/2021.
- Full implementation from 2024: The regulation applies to new purchases from January 1, 2024, based on the circular of the Ministry of Finance.
2. Incentives for Property Renovation:
- Income tax reduction: Expenses up to €16,000 per year for energy, functional and aesthetic upgrades reduce taxes, according to Article 7 of Law 4641/2019.
- Payments by electronic means: Necessary to use bank transfers for the VAT exemption, as defined in POL. 1003/2023.
- Expense split: 1/3 for materials, 2/3 for services, based on the circular of the Ministry of Development and Investments.
- Submission of invoices to AADE: Electronic transmission via myDATA, in accordance with A.1138/2023.
3. Taxation of Long-Term Leases:
- Business activity: Required for 3 or more properties in short-term rentals, based on Article 53 of Law 4172/2013.
- Bookkeeping and issuance of tax documents: Mandatory for all owners, according to POL. 1072/2013.
- Insurance contributions, business tax and VAT: Charges from the first property, as defined in Article 39 of Law 4488/2017.
4. Tourist Accommodation Tax:
Extension to short-term rentals: 0.5% on revenue, in accordance with Article 53 of Law 4172/2013.
5. Fines for non-registration in the Short-Term Rental Property Registry:
Increase: 50% of gross income, with a minimum of €5,000, based on Article 105 of Law 4818/2021.
6. Maximum duration of short-term leases:
60 days: Restriction per lease, not annual, according to Article 79 of Law 4495/2017.
7. Abolition of TAP non-indebtedness certificate:
Automated update from the Land Registry: The Municipality checks for any debts through the Land Registry, as defined in Article 10 of Law 4818/2021.
In a nutshell:
- Stricter controls on real estate transactions.
- Incentives for renovations aiming at energy efficiency upgrades.
- Differentiation in tax treatment between short-term and long-term leases.
- Simplification of the process for real estate buyers through digitization.
The information presented is based on the data available at the time of writing. There is no commitment to update or modify the text after the initial publication. The user bears full responsibility for assessing and using the information. Provision of legal advice or assumption of liability towards third parties is limited to clients who have entered into a relevant cooperation with the office.
