Short-Term Rentals (Airbnb): The New Legal Framework in Greece

Introduction
The rapid development of short-term rentals, known mainly through platforms such as Airbnb, Booking, and Vrbo, has radically changed the real-estate market and the tourism landscape of Greece. This practice, which began as a form of “sharing economy,” has evolved into a dynamic economic phenomenon, causing significant legal, tax, and urban-planning challenges. The legislator, recognizing the need to regulate the sector, has established an increasingly strict framework for the operation of short-term rentals, both for reasons of fiscal transparency and for the protection of safety and quality of accommodations.

The new legal regime aims to balance the interests of property owners, tenants, tourism businesses, and local communities. Proper legal and tax compliance has now become essential, as failure to meet the obligations may result in severe fines or even exclusion from digital platforms.

1. Registration Obligation and Taxation
The institutional framework for short-term rentals is primarily regulated by Article 111 of Law 4446/2016, as amended by Law 4472/2017 and further specified by POL. 1187/2017 of the Independent Authority for Public Revenue (AADE). According to these provisions, every property offered for short-term lease must be registered in the Short-Term Accommodation Property Registry. The lessor—whether the owner or the manager—is obliged to declare each lease electronically through the AADE platform, recording the Property Registration Number (A.M.A.), which must appear on every related post on platforms or websites.

Non-compliance with these obligations entails administrative fines as provided for in Article 54A of Law 4174/2013 (Tax Procedure Code). For example, failure to include the A.M.A. in a post results in a fine of €5,000, while repeated violations may lead to the deletion of the property from the Registry and prohibition of new listings.

As for taxation, income derived from short-term leases without the provision of additional services (e.g. cleaning, breakfast, transport) is considered income from real estate, in accordance with Article 39 of Law 4172/2013 (Income Tax Code). Conversely, when such services are provided, the income is classified as business income, with different tax treatment.

Furthermore, the lessor is required to keep an electronic record of all transactions, while digital platforms (such as Airbnb, Booking, etc.) are obliged to cross-check and transmit data to the AADE.

This system aims not only to ensure tax revenue but also to promote equality with traditional tourist accommodations, which are subject to stricter licensing requirements.

2. New Specifications from 1.10.2025
Law 5170/2025 (Government Gazette A’ 164/01.07.2025), which introduced substantial changes to the operation of short-term rentals, established for the first time mandatory technical and operational specifications for all properties offered for tourist use via digital platforms. The new requirements come into mandatory effect on October 1, 2025, and compliance is a basic prerequisite for maintaining registration in the AADE Registry.

Specifically, each property must meet the following criteria:
a) Natural lighting and ventilation to ensure the hygienic accommodation of visitors.
b) Minimum energy efficiency, in accordance with the Building Energy Performance Regulation, in order to promote sustainability and reduce the energy footprint of accommodations.
c) Fire safety, based on the standards of the Fire Department.
d) Legality of use: the property must have a building permit and be designated as a main or auxiliary residence. Unauthorized or professionally used properties are excluded.

If the above conditions are not met, the tax administration may delete the property from the Registry, either ex officio or following a complaint. Deletion automatically results in a ban on listing through platforms and the imposition of fines.

The establishment of these specifications aims to ensure service quality and visitor protection, aligning the Greek framework with European guidelines for “responsible tourism” and sustainable urban development.

3. The Lawyer’s Role in the Legal Management of Airbnb
The involvement of a lawyer is crucial in the lawful operation of short-term rentals. The lawyer can act as a legal advisor both for individuals and for businesses wishing to operate in this market, preventing risks and ensuring full compliance with the law.

Indicatively, the lawyer:
a) Carries out a full legal inspection of the property.
b) Handles issues of civil liability, such as damages caused by tenants or violations of apartment-building regulations.
c) Negotiates the terms of all contracts related to the specific activity and guides the client in understanding the often complex rental-platform agreements.
d) Informs the client of any new legislative initiative by the Greek State.
e) Assists the client in selecting appropriate tax and technical advisors.

Legal guidance has become essential today, as the institutional framework continues to evolve, with new circulars and regulatory decisions issued almost annually.

Conclusion
Short-term leasing through platforms constitutes an important economic activity, which, however, is now governed by a complex and strict legal framework.

Therefore, whether it concerns a private individual wishing to exploit their residence or a professional managing multiple properties, cooperation with a lawyer ensures legality and security. In a field that is constantly evolving, reliable legal guidance forms the foundation of a sustainable and responsible business activity.