Home World Greece plans major holiday home crackdown after locals blast overtourism

Greece plans major holiday home crackdown after locals blast overtourism


The auditing mechanism of the Independent Authority for Public Revenue (AADE) is tightening its grip on undeclared income from short-term rentals in Greece.

Through sophisticated cross-checking, the agencies of the tax administration will look for hotspots of tax evasion and then auditors will immediately take action to determine and impose the fines provided for by the tax legislation.

They will also put all betting companies operating in Greece in the firing line. 

Despite the measures taken, illegal money continues to circulate widely among short-term rentals, such as Airbnbs, with large discrepancies revealed between bookings and declared income in rentals via sites such as Booking.com.

The cross-checking project is set to start immediately, with the help of a new digital unit, which also uses artificial intelligence. Property lease checks will use AI algorithms and applications, combining and cross-referencing all sources of tax and other data, ekathimerini reported. 

Probes will focus on declared incomes, with the data declared in the tax returns to be cross-referenced with the data sent to AADE by short-term rental companies, as well as living expenses, assets, bank accounts and any deposits abroad.  

This move is one of the latest in a string of measures imposed by the Greek government in an attempt to get a handle on the over-tourism crisis which is affecting its mainland and most popular islands, including Santorini, Mykonos and Athens, the latter of which was recently described as unwalkable and “overwhelmed” due to tourist numbers. 

One of Santorini’s main issues are the many cruise ships that dock on the island. In July, 17,000 tourists descended on the island in just one day, with residents asked to limit their movements in an unprecedented announcement by a councillor of the island. 

To get a handle on the crisis, Santorini’s mayor Nikoz Zorzos recently suggested limiting cruise ship visitors to just 8,000 a day, as well as a rumoured visitor cap set to be enforced in 2025.

Cruise ship tourists will also soon have to pay a 20-euro-each tourist tax (£16.80) to step off the ship when visiting Greece’s most popular destinations.

The island is also poised for new measures designed to put a brake on the construction of new buildings and the conversion of existing buildings into new hotels. The rules would also prevent owners from building new swimming pools.

In a nationwide plan, the Greek government is bringing in new measures that could limit the availability of short-term holiday rentals, focusing initially on tourist hotspots and saturated urban areas on the mainland as well as those islands popular with British tourists.  

The plan, designed to free up housing stock for Greek citizens, includes a temporary freeze on new short-term rental permits in neighbourhoods exceeding five percent of the total housing stock.

Greekcitytimes.com reported: “The new plan will involve restrictions that are tailored to specific neighbourhoods, with data being analysed down to the zip code level.

“This approach aims to balance the presence of short-term rentals with long-term leasing options more precisely.

“For instance, if short-term rentals dominate in areas like Koukaki and parts of central Athens or Thessaloniki, new permits will be restricted to prevent further saturation.”

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