Short-term lettings in Greek blocks of flats may be banned, and a new Airbnb fee structure for hosts in Europe.
The Greek Tax Authority (ΑΑΔΕ) is intensifying its oversight of short-term rental properties, announcing comprehensive electronic audits targeting thousands of property owners who lease accommodations through platforms like Airbnb, Booking.com, and Vrbo throughout 2026.
Two-Pronged Attack on Tax Compliance
The tax authority’s operational plan for 2026 involves two distinct enforcement actions designed to ensure compliance with Greece’s short-term rental regulations and tax obligations.
First Action: Validating Property Registration and Codes (Tax Year 2025)
The initial audit phase focuses on verifying that all active listings possess valid Property Registry Numbers (ΑΜΑ) for the 2025 tax year. Tax officials will cross-reference platform data with the Short-Term Rental Registry to identify:
- Listings without proper property registration
- Listings with invalid or mismatched property codes
- Properties with deactivated registry numbers
- Discrepancies between platform information and tax authority records
Previous enforcement efforts resulted in 12,145 listings being flagged for deactivation due to missing or invalid registration numbers. In 2025 alone, approximately 2.47 million short-term rental declarations were filed, representing a 6% increase, with declared rental income totaling €974 million—a 10% rise year-over-year.
Second Action: Uncovering Hidden Income (Tax Years 2022-2023)
The second enforcement wave targets individuals who earned income from short-term rentals during 2022 and 2023 without properly declaring it or registering a business activity. Tax authorities will compare platform-reported earnings against filed tax returns and short-term rental declarations to identify significant discrepancies.
Prior cross-referencing operations identified 24,383 unique taxpayer identification numbers (ΑΦΜ) with variances exceeding €500 between platform-reported income and tax-filed amounts. The breakdown reveals:
- 2020: 6,222 discrepancies detected
- 2021: 10,724 discrepancies detected
- 2022: 17,525 discrepancies detected
Penalties and Enforcement Measures
Property owners who fail to register or display valid property codes face significant financial consequences:
- Primary violation: Administrative fines equal to 50% of gross rental income, with a minimum penalty of €5,000 per property
- Repeat violations: Penalties double and quadruple for subsequent infractions
Additionally, the tax authority has deployed artificial intelligence tools to analyze risk patterns and identify suspicious cases, including the common practice of directing bookings outside the platform to avoid reporting income.
Voluntary Compliance Success Rate
A pilot program conducted for the 2018-2019 tax years demonstrated the effectiveness of targeted outreach. The initiative achieved a 56% voluntary compliance rate, with affected taxpayers declaring an additional €7.23 million in income. By May 2025, the tax authority had collected approximately €951,000 in taxes from this period.
Key Takeaway
Property owners operating short-term rentals through online platforms should ensure full tax compliance. With the tax authority’s enhanced data-sharing agreements with major platforms and advanced analytical tools, undeclared income and unregistered properties are increasingly difficult to conceal. Voluntary disclosure remains a more favorable option than facing audits and substantial penalties.
Greek Court Rules: Airbnb Listings in Apartment Blocks Can Be Banned Under Building Regulations
A landmark court decision in Greece has clarified the legal status of short-term rental properties in multi-unit residential buildings, establishing that Airbnb and similar vacation rental platforms can be prohibited if the building’s regulations explicitly restrict apartments to residential use only.
The Explosive Court Ruling
The Athens Single-Member Court of Misdemeanors (ΜΠΑ 2937/2026) handed down a decisive judgment that resolves a contentious issue affecting thousands of Greek property owners and residents. The court upheld a request for protective measures filed by a building manager on behalf of co-owners, ruling that short-term rental operations are not permitted when the building’s regulations mandate exclusive residential use of apartments.
This decision creates significant legal precedent for similar cases throughout Greece, as the dispute between property owners seeking to profit from vacation rentals and residents concerned about quality of life continues to intensify.
Understanding the Legal Framework
The core of the court’s reasoning centers on a principle established in Greek property law: building regulations have the force of law in relationships between co-owners. This means the regulations binding all residents in a multi-unit building carry legal weight equivalent to statutory law.
In this particular case, the building’s regulations explicitly stated that horizontal property units (apartments) were designated exclusively for residential purposes. The court found that this restriction applies to all occupants and uses, including short-term vacation rentals conducted through platforms like Airbnb.
The Case Details
The building manager, acting as representative of the co-owners, sued a company that had violated the building regulations. The plaintiff’s allegations included:
- Registering the property on an internet platform in summer 2025 in direct violation of building regulations
- Operating the apartment as a tourist accommodation through short-term rental (Airbnb) systems
- Creating daily nuisances through guest behavior, including noise during quiet hours
- Excessive wear and tear on common areas from intensive short-term use
- Security breaches from unrestricted entry of third parties
- Disruption to the normal living conditions of legitimate residents in their own homes
The Court’s Interpretation
The court acknowledged that the building’s original regulations—drafted in 1929—did not explicitly mention short-term rentals or Airbnb, as these platforms did not exist when the regulations were created. However, the judges applied legal principles of good faith and standard commercial practice to interpret the parties’ original intent.
The court reasoned:
“The will of the parties, as derived from the aforementioned provisions and from the entirety of the regulations, particularly from the prohibition on using apartments as hotels or hotel-type establishments, or for providing services that cause an influx of large numbers of visitors or unusual noise, was to include such rentals in this prohibition, had the possibility of such rentals been known at the time of drafting the regulations.”
In other words, the court determined that if the building’s founders had known about short-term rental platforms, they would have explicitly banned them as part of their prohibition against hotel-style operations.
Key Regulatory Prohibitions Cited
The court’s decision drew on existing building regulation language that explicitly prohibited:
- Use of apartments as hotels or hotel-type establishments
- Services that create unusually high visitor traffic
- Activities that generate abnormal noise levels
- Uses that disrupt normal residential enjoyment
The judges determined that Airbnb and similar short-term rental operations fall squarely within these prohibited categories, even if not specifically named.
The Court’s Remedy
The court ruled in favor of the building manager and against the defendant company, ordering them to:
- Cease immediately all professional use of the apartment as a short-term rental accommodation
- Refrain from repeating such violations in the future
- Face financial penalties for any future breaches of the court order
Implications for Property Owners
This decision carries profound implications for Greece’s burgeoning short-term rental market. Thousands of apartment owners currently operating Airbnb listings in multi-unit buildings may now face legal challenges from co-owners and building managers seeking to enforce similar building regulations.
The ruling suggests that:
- Building regulations take precedence over individual property rights in multi-unit residential complexes
- Short-term rental operations can be legally banned in buildings with restrictive regulations
- Co-owners have standing to sue for enforcement of building regulations through the courts
- Courts will interpret outdated building regulations in light of modern circumstances and original intent
Broader Context: Property Law Modernization
The decision arrives at a critical moment for Greek property law. The Ministry of Justice has announced plans to establish a legislative commission to modernize the legal framework governing property ownership relationships—a legal framework that currently dates back to 1929.
The Preparatory Legislative Commission is expected to begin work in July 2026, with the goal of completing modernized property legislation for parliamentary vote before the end of 2026. This court decision may significantly influence how the new regulations address short-term rentals and residential harmony in multi-unit buildings.
What This Means for Your Situation
If you own an apartment in a Greek multi-unit building and are considering Airbnb operations—or already operating one—you should:
- Review your building regulations carefully. Check whether they restrict apartments to residential use only.
- Consult with a lawyer. If restrictions exist, short-term rentals may be legally unenforceable.
- Monitor building manager communications. Complaints from other residents could lead to legal action.
- Consider disclosure. Being transparent with your building management may prevent costly litigation.
Bottom Line
This landmark ruling confirms that building regulations—even decades-old ones—can effectively ban short-term rental operations in residential apartment blocks. Greek residents and property managers frustrated by Airbnb noise and disruption now have a legal tool to enforce residential protections. For property owners, the message is clear: operating a vacation rental in a building that restricts residential use may be illegal, regardless of the platform’s popularity or your income potential.
Airbnb Shakes Up Pricing: New 15.5% Host-Only Fee Model Coming to Europe
Airbnb is rolling out a major change to its pricing structure across the European Economic Area (EEA), including Greece, fundamentally altering how service fees are charged on bookings. The new model, set to take effect on October 13, 2026, replaces the current shared-fee system with a single, host-only commission.
What’s Changing?
Until now, Airbnb has split its service fees between hosts and guests. Hosts paid a small percentage, while guests saw an additional service fee added on top of the listed nightly rate. This often resulted in confusion, as the final price displayed to guests was higher than the host’s advertised rate.
Under the new system, Airbnb will apply a flat 15.5% service fee exclusively to hosts. Guests will no longer pay a separate service fee, meaning the price they see upfront will match the listing price set by the host.
Why Airbnb Is Making the Change
According to Airbnb, the current pricing model creates friction in the booking process. Hosts set a base price, but guests ultimately see a higher total after fees are added, making it harder to compare listings and compete effectively.
The new approach aims to:
- Improve price transparency for guests
- Make listings easier to compare
- Simplify pricing strategies for hosts
- Align with a global average commission structure
In short, Airbnb wants the price shown in search results to reflect the true cost of the stay—no surprises at checkout.
What It Means for Hosts
While the change simplifies pricing for guests, it shifts the financial burden entirely onto hosts. The 15.5% fee will now be deducted directly from the host’s listed price.
This creates a critical decision point:
- Adjust prices upward to offset the new fee and maintain current earnings
- Keep prices unchanged and accept lower net income per booking
Airbnb has made it clear that failing to adjust prices could significantly impact host revenue.
Real-World Example
Airbnb provided a simple illustration of how the new model works:
- Current system: A host sets a nightly rate of $100. The guest ends up paying around $115 after fees, while the host receives დაახლოებით $97 after their commission.
- New system (adjusted price): If the host raises the price to $115, the guest still pays $115, and the host earns roughly $97 after the 15.5% fee.
- New system (no adjustment): If the host keeps the price at $100, their earnings drop to about $84.50 per night.
The takeaway is clear: price adjustments are essential to maintain current income levels.
Tools and Deadlines
To help hosts adapt, Airbnb is introducing a dedicated tool that allows bulk price updates across listings. The platform is also providing step-by-step guidance through educational materials.
Hosts are strongly encouraged to update their pricing before October 13, 2026. Airbnb has issued a direct warning:
“Adjust your prices before the deadline to keep your payouts the same. If you don’t, your earnings will be lower.”
For hosts outside the EEA, similar changes will be implemented earlier, starting September 15, 2026.
Impact on the Market
This shift could have broader implications for the short-term rental market in Europe. While guests benefit from clearer pricing, hosts may respond by increasing nightly rates, potentially affecting demand and competitiveness.
At the same time, greater transparency could improve trust and conversion rates, as travelers are more likely to book when the displayed price matches the final cost.
Bottom Line
Airbnb’s new billing model marks a significant shift toward transparency—but also places greater responsibility on hosts to manage their pricing strategy. Those who adapt quickly can maintain their earnings, while those who don’t may see noticeable declines in revenue.
As the October deadline approaches, hosts should review their listings, evaluate their pricing, and make adjustments to stay competitive in an evolving marketplace.
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