From the beginning of 2024, approximately 57,000 property owners, which are rented out on a short-term lease, will be charged with VAT of 13% as well as a resident tax (0.5% of revenue). in the context of the implementation of government interventions aimed at ensuring equal competition in the tourism market, the intersection of incomes and the strengthening of the sector.
Specifically, it is provided that:
- Natural persons who have three or more short-term rental properties they are required to do starting a business. The income obtained by legal entities, from the short-term rental of real estate, is considered income from business activity and is subject to VAT.
- The fines for not registering in the “Register of Short-Term Accommodation Properties” are increasingat 50% of the gross income of the last tax year and a minimum of 5,000 euros (today the fine is 5,000 euros).
- It is defined as a short-term rental of a property, regardless of whether it is posted on a digital platform or not, for a period of less than sixty days each time and as long as no other services are provided, apart from accommodation and the provision of bed linen.
- It extends to short-term rentals accommodation fee for transients, which is 0.5% on revenue.
- Abolish the residence tax and introduce the “climate resilience fee”, in hotels, rooms for rent, tourist villas, short-term rentals and tourist villas. The fee scales during the months of March to October from 1.5 to 10 euros per day and from November to February from 0.5 to 4 euros per day.
The old accommodation tax scale and the new climate change mitigation fee according to accommodation category are as follows:
Category Amount per day today New Price Increase
1-2 stars €0.50 €1.50 €1.00
3 stars €1.50 €3.00 €1.50
4 stars €3.00 €7.00 €4.00
5 stars €4.00 €10.00 €6.00
Rooms for rent €0.50 €1.50 €1.00
Short term rental €0.00 €1.50 €1.50
It is noted that 168,819 properties belonging to 107,719 VAT numbers (legal and natural persons) are registered in the AADE Short-term Accommodation Property Register. From those:
- 27,367 properties belong to 5,297 legal entities
- 141,452 properties belong to 102,422 natural persons. Of these, up to 2 properties are owned by 94,982 natural persons (92.7% of natural persons). Three or more properties have 7,440 natural persons and correspond to 30,329 properties.
Therefore, a total of 7,440 natural persons and 5,297 legal entities with 57,696 properties (34.2% of the properties) will be required to pay VAT and non-resident tax, unless they choose to convert part of them into a long-term lease. It is noted that 4,100 natural persons have exactly three properties (and an additional 1,687 natural persons have four properties).
Source: Daily
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