Tax planning in hotel businesses and short-term accommodation leases in Greece

Evangelia Kasimati, Ph.D.

Bank of Greece, Economic Analysis & Research department,

21 Panepistimiou str, Athens, GR 102 50, Email: ekasimati@bankofgreece.gr

Adjunct Professor, Hellenic Open University (HOU)

Panagiota Dionysopoulou, Ph.D.

Director General of Tourism Policy

Ministry of Tourism, 12 Amalias Street, Athens, GR 105 57

Adjunct Professor, Hellenic Open University (HOU)

Email: yoldi63@gmail.com

Anna Kontaratou

  Hellenic Open University, M.A. in Tourism Management.

Email:std162114@ac.eap.gr

Abstract

Recently, the issue of the housing crisis has become increasingly pressing with rising rental prices and growing difficulty in finding decent accommodation. In an effort to address it, the government has implemented new tax legislation concerning short-term rental accommodations. There have been reactions to the high taxes from both property owners and hotel businesses, who believe they are being overtaxed. Is the new law considered fair or excessive? If a more favorable tax treatment were applied, would it lead to a strengthening of tax awareness? Would tax evasion decrease, thereby promoting the growth of tourism?

This study focuses on the issue of tax planning for tourist accommodations and aims to evaluate it. The objective is to record the opinions and perceptions of the primary stakeholders. For the purposes of the research, two questionnaires were conducted — one for Greek travelers and one for businesses in the Attica region. The results showed that there are doubts about its effectiveness. It may even lead to opposite outcomes.

Keywords: Taxation, VAT, Hotels, Airbnb, Greece

JEL codes: H2; H25; H26