For property owners in Kavala, Nea Peramos, and throughout Greece, understanding the tax framework is paramount to maximizing profit and ensuring compliance. With the recent Law 5246/2025, the Greek government has introduced significant changes effective January 1, 2026, making it essential for every host and investor to re-evaluate their strategy.
The Golden Visa secures your residence permit, but managing your Greek STR income declaration efficiently secures your financial success.
This guide breaks down the complex world of Airbnb tax in Greece (2026 Update), providing clarity on income taxation, VAT status, mandatory fees, and the critical difference between acting as an individual and operating as a business.
1. The Core Change: New Progressive Tax Scale for Rental Income (2026)
The biggest news for individual property owners is the introduction of a new intermediate tax bracket for rental income. This change smooths the tax curve and offers a significant reduction for middle-tier earners.
This scale applies to individuals who lease up to two properties through platforms like Airbnb and Booking.com without providing any extra hospitality services (like breakfast or daily cleaning).
The New 2026 Tax Rates (Per Owner):
- Income €0 – €12,000: Taxed at 15% (No change)
- Income €12,001 – €24,000: Taxed at 25% (NEW: Previously this was taxed at 35%)
- Income €24,001 – €36,000: Taxed at 35%
- Income Over €36,001: Taxed at 45%
🎯 Case Study: The €20,000 Earner
To understand the benefit, let’s look at a Kavala property generating €20,000 in gross annual income.
- Old System (2025): You paid 15% on the first €12k (€1,800) and 35% on the remaining €8k (€2,800). Total Tax: €4,600.
- New System (2026): You pay 15% on the first €12k (€1,800) and only 25% on the remaining €8k (€2,000). Total Tax: €3,800.
- The Result: You save €800 per year purely due to the new law.
Critical Note on Co-Ownership: The tax scale is calculated per property owner (per AFM/Tax ID), not per property. If a couple jointly owns a property and generates €24,000 in rent, they each declare €12,000. Under the 2026 scale, their total tax liability would be calculated at the minimum 15% rate, maximizing their savings.
2. Who is Affected? Residents vs. Non-Residents
The excellent news for international investors is that Greek tax rates do not depend on tax residence for rental income.
- Non-Resident Owners: You are only taxed on your Greek-source income (the rent you earn in Greece) at the progressive rates listed above. You are legally required to obtain a Greek Tax Identification Number (AFM) and appoint a Greek tax representative.
- Resident Owners: You are taxed on your worldwide income, including your Greek STR earnings, at the same progressive rental income scale.
In both cases, you must file an annual tax return declaring this income via the TaxisNet platform.
3. The Deduction Dilemma: Individual vs. Business Entity
This is the most critical decision for owners looking to minimize their taxable income.
Option A: The Individual (Leasing 2 Properties or Less)
If you rent out 1 or 2 properties and provide no additional services (only bed linen), your income is classified as income from immovable property.
- Automatic Deduction: You get a flat 5% automatic deduction on your gross rental income for maintenance and repairs.
- The Limitation: You cannot deduct actual expenses such as cleaning fees, property management commissions (like Planbnb’s fee), electricity, or internet bills. You are taxed on 95% of your gross revenue.
Option B: The Business Entity (The 3+ Property Rule)
If you rent out 3 or more properties, the law requires you to open a business (sole proprietorship or company). You also fall into this category if you provide services like breakfast or transportation.
- Full Deductions: You can deduct 100% of legitimate business expenses. This includes commissions, cleaning, repairs, utilities, insurance, and marketing costs.
- Tax Rate: Net profit is typically taxed at the corporate rate (currently 22%), which can be more favorable than the high-tier individual rates if you have significant expenses.
- VAT Obligation: You must charge VAT (see below).
4. VAT and Mandatory Guest Fees
The status of VAT for short-term rentals in Greece depends entirely on your operational model, but the Climate Crisis Levy applies to everyone.
Value Added Tax (VAT)
- Individuals (≤ 2 properties): Your rental income is generally Exempt from VAT.
- Business Entities / 3+ Properties: You must charge VAT. For accommodation services, this is typically the reduced rate of 13%. This requires careful pricing, as your advertised price on Airbnb must include this tax.
The Climate Crisis Resilience Levy
This mandatory daily fee (replacing the old tourist tax) must be collected from your guests and remitted to the state. It is charged per night, per property.
High Season Rates (March – October):
- €8.00 per night for standard apartments/rooms.
- €15.00 per night for single-family homes larger than 80 sq.m.
Low Season Rates (November – February):
- €2.00 per night for standard apartments/rooms.
- €4.00 per night for single-family homes larger than 80 sq.m.
5. Compliance: Registration and Fines
Regardless of your tax status, you must comply with the AADE (Greek Independent Authority for Public Revenue) requirements:
- Registry Number (AMA): You must obtain a Short-Term Stay Property Registry Number and display it on everysingle listing (Airbnb, Booking.com, etc.).
- Digital Declaration: You must submit a digital “Statement on Short-Term Stay” for every guest booking by the 20th of the following month.
- The Fines: Failure to register your property or display the AMA carries heavy penalties, often starting at €5,000for the first offense.
The Planbnb Advantage
Navigating the changes to the Short-Term Rental Tax Laws Greece 2026 is not an easy task for an overseas owner. Planbnb ensures full compliance for your property. We manage the monthly Climate Levy collections, ensure your AMA is visible, and work directly with your accountant to optimize your income declaration, whether you operate as an individual or a legal entity.
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