N E W S R E P O R T V A P L A W J U N E 2 0 1 5
R E N T I N G V I L L A S I N G R E E C E
Simplification of the issuing procedure of the Authorized License (A.L.)
A steady trend is observed in Greece recently, tourists choosing to stay, during their holiday at luxurious summer homes. For this reason many Greek owners put their holiday homes up for rent, either occasionally to cover maintenance costs, or regularly for income.
The search for such holiday homes is done through the many web pages that advertise holiday accommodation, luxurious and not, in Greece offered for renting to tourists.
Nevertheless, a big part of this accommodation, at least in the last years, is leased illegally, without the Authorized License and without filing income taxes, as a result the owners may run a serious risk of paying fines even prosecution in some cases.
The new law 4276/2014 that was put into force in 1.1.2015 came to simplify and accelerate, among other things, the procedure of obtaining the A. L.
Legal leasing framework for tourists accommodation and the issuing of A.L.
1. Introduction
The law 4276/2014, which was put into force on 1.1.2015, whose goal was to attract the investing interest and to increase the creation -on the whole- of tourists businesses, simplifies the running procedure and the supplying of the Authorized License (A.L.).Especially, as far as tourist accommodation of any kind is concerned (hotels, villas, etc) which employs, mainly, the biggest spectrum of entrepreneurs and owners, the law gives clear terms and classifies them from start.
2. Tourist accommodation- Separation in principal and non principal
Tourist accommodation: the property which is rented out for temporary stay for less than thirty (30) days and is distinguished as follows, is considered tourist accommodation:
2.1. Principal: Hotels, organized tourist camping, youth hostels, complex tourist accommodation, co-ownered hotels, tourist accommodation within traditional buildings.
2.2. Non principal: self-serviced accommodation- tourist furnished villas (see par. 41 below ), self-serviced accommodation- tourist furnished homes (see par. 4.2 below) room- apartments to let.
3. Supplying A.L
• A precondition for the running of all the accommodation is the previous supplying of A.L from the qualified authorities.
• Those who are interested must submit the required documents either to the qualified tourist authorities or to any Point of Contact for Citizens which works as a single point of contact (S.P.C). It is indicated that depending on the above distinction of the accommodation to principal and non principal tourist accommodation, the relevant documents are differentiated accordingly.
• Especially for swimming pools, the relevant documents are those referred to pragr.2 of the article 154 of the law 4070/2012.
• The competent tourist authority issue the A.L within fifty (50) days from the adequate submission of the relevant documents. if no communication is received from the competent authorities on expiry of the period provided, then the issuing of the A.L. is presumed and the applicant may require the relevant certificate of the competent authorities.
• The A.L. is open- ended. The supporting documents that expire have to be replaced necessarily before the expiry date, otherwise the A.L. is recalled.
It is finally feasible for all those who are interested, with proper briefing and guiding, in obtaining the A.L. and in this way, increase their clientele, since the A.L is considered a guarantee by the tourists and they look for it.
4. More specific provision for the self-serving touristic accommodation
Concerning the establishment and the running of the self self-serving touristic accommodation which is covered by the non principal hotel accommodation, as mentioned above in the indent (2.2) of par.2, the law 4672/2014 refers to the provisions of the article 46 of the law 4173/2013 and as a result the ministerial decree no 277/2013 (M.D. 27715 Greek Government Gazette 3118/2013 Series B) issued after the enabling provision of the last one. From the combination of the above it is defined that:
4.1. Detached homes with a surface of at least 80m2 that have private access , property/field and building autonomy are considered self serviced tourist accommodation furnished villas. They are built with house building terms. They are not classified in categories and can be leased daily excepting the case in par.5 of the article 46 of the law 4179/2013 (see par 5 below) with the condition of being issued an authorized license.
4.2. Individual residences or residential compound with a surface of at least 40m2 each, operational autonomy and private external access are considered self serviced touristic furnished accommodation. They are built with housing building terms, they are not classified in categories and can be leased daily with the condition of being issued an authorized license.
It is noticed that in this case, the granting of permission takes place at a stage, without a prior suitability approval of the property/field and the architectural study and the A.L. is issued without preapproval, within ten (10) working days from the submission of the necessary documents and as long as all the legal preconditions are fulfilled. If no communication is received before the deadline, it is presumed that the A.L. has been issued and the person interested can ask for the relative confirmation from the competent authorities.
5. More specific provisions for real estate rental from owners
5.1. Individuals may lease any real estate for a period of at least thirty (30) days, without any previous issue of the A.L. and professional initiation.
5.2. Individuals, with previous issue of the A.L. but without professional initiation to the tax authorities, may lease a real estate which bears the characteristics and the requirements of a fully furnished touristic villa (see above par. 4.1.), in total and not in several consignments, to natural persons for a period of at least one week and no more than three (3) months in total per year, prohibiting the successive leasing for more than three months in the same year.
6. Conclusion
To sum up the above, a summary table of the real estate leasing categories from entrepreneurs and owners is given:
| LESSOR | TYPE OF REAL ESTATE | OBLIGATION A.L. | OBLIGATORY SUMBISSION TO THE TAX AUTHORITIES | LEGAL DURATION |
|---|---|---|---|---|
| ENTEPRENEUR | Any type of touristic accommodation | Yes | Yes | There is no limit |
| OWNER | Any real estate | No | No | At least one (1) month |
| OWNER | Tourist furnished accommodation | Yes | No | At least one (1) week- no more that three (3)months per year |
It is pointed out that the administrative penalties (fines) for the infringers of the above are clearly stated in the article 7 of the law 4276/2014 and varies for each type of tourist accommodation.
Note: It is pointed out that the above outline of provisions is suggestive and summarizing and aims at providing a quick update in relation to the legal framework. Any subjection of your company to the above provisions and the conditions of this subjection constitute the object of a more complete analysis for which the provision of specialized legal advice is required.
D I S C L A I M E R
The contents of this newsletter do not constitute legal or tax advice and cannot be used as such. In case you require advice for your personal needs, please do not hesitate to contact us.
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