Airbnb Crackdown: Thousands of Undeclared Rental Incomes Exposed by Greek Tax Authority

Greece is entering a new phase of tax enforcement, with authorities intensifying scrutiny over real estate transactions and short-term rentals listed on platforms such as Airbnb, Booking.com, and Vrbo.

Findings from the Independent Authority for Public Revenue (AADE) for 2025 reveal widespread discrepancies—but also a gradual shift toward higher compliance driven by digital enforcement tools.

Growth surge—alongside tax gaps

In 2025:

• 2.46 million short-term rental declarations were filed
• total declared income reached €973.7 million
• representing a ~10% increase from 2024

The short-term rental sector is now firmly embedded in Greece’s tourism economy. Yet behind this growth lies a significant compliance gap.

Tax audits identified:

• over 38,000 taxpayers with inconsistencies
• widespread underreporting of rental income
• and cases of complete non-declaration

Property purchases: undeclared acquisition costs

A notable set of violations concerns real estate acquisitions.

Authorities identified 873 taxpayers who:

• purchased property in 2019
• paid the required transfer tax
• but failed to declare the acquisition expense in their annual tax returns

Following targeted outreach:

• 65% submitted amended returns
• €87 million in acquisition costs were disclosed
• approximately €577,000 in additional tax was assessed

This highlights a persistent issue of partial or selective reporting in property transactions.

Airbnb income: the “grey zone”

The largest discrepancies were linked to income earned via platforms like Airbnb.

Specifically:

• 24,383 taxpayers showed mismatches for tax years 2020–2022
• many had not registered any business activity
• despite generating substantial rental income

Experience from previous audits shows that: over 50% voluntarily comply once contacted by the tax authority, declaring previously hidden income.

“Professional” landlords without registration

Another critical finding involves high-volume property owners.

The AADE identified:

• 1,545 individuals
• operating three or more rental properties
• without registering as businesses or declaring the appropriate activity codes

This suggests that a portion of the market functions as a de facto commercial operation—without being taxed accordingly.

Heavy penalties and stricter enforcement

The penalty framework is particularly severe:

• fines up to 50% of gross annual income
• minimum penalty of €5,000
• penalties doubled for repeat violations
• fines up to twice the rental amount for inaccurate declarations

Failure to register in the Short-Term Rental Property Registry or using an invalid registration number is a key enforcement trigger.

The era of digital tax enforcement

The strategy of the Independent Authority for Public Revenue is increasingly data-driven, relying on:

• automated cross-checking of platform data
• integration of information from international booking platforms
• targeted digital notifications to taxpayers

This marks a transition toward a “smart audit” model with limited room for concealment.

The end of easy tax evasion

The direction is clear:

The era of loosely monitored short-term rentals in Greece is coming to an end.

The market is shifting:

• from fragmented oversight
• to full-scale digital transparency

For property owners, the choice is becoming increasingly stark:comply—or face significant financial consequences.

Source: pagenews.gr