Short-term rental taxation differs for individuals and companies.
Short-term rental taxation differs for individuals and companies. Well-known short-term rental platforms are:
Individuals are taxed on short-term letting as declared rental income, as is the case with long-term letting, while companies are taxed according to business income.
Should I start a business in Greece with my AirBnb earnings?
Taxation for companies is at 22% on net profits. Net profit means that expenses and other parameters such as depreciation have been subtracted. Companies present invoices for their expenses and in order to rent accommodation they must have the EOT mark or be registered with the Short Stay Property Register.
On the other hand, taxation for individuals is as follows:
For individuals, the taxation of short-term rentals is tiered and defined as follows:
- Rental income up to 12,000: 15% tax
- Income from 12,0001 to 35,000: 35% taxation
- Income over €35,000: 45% taxation
If you have a total income from short-term rentals of €40,000, then the first €12,000 will be taxed at 15%, the amount from €12,001 to €35,000 at 35% taxation and finally the €5,000 at 45% taxation.
If your income exceeds €20,000, then the creation of a company is deemed necessary. Also, depending on your income and business goals, the legal form of the company you will establish is also determined.
Do I have to register my property in the Short-Term Property Registry?
Yes, because if you don’t register it then you will pay a fine.
Do I need a qualified accountant in Greece for Airbnb?
The procedures in short-term rental properties for both individuals and companies are not easily manageable. Especially during the period when the number of tourists is high. Meeting your obligations can negligently be left behind in times when you have to take care of your guests and a series of reservations and possible cancellations.
A qualified Airbnb accountant can keep your business safe by keeping you up-to-date and looking after its growth by leveraging the tax laws to your advantage.