Ministry of Interior Bill: Municipal fee for non-residents 0.50 – 0.75% on leases of less than 6 months!

The possibility for municipalities to increase the non-immigrant fee is given by the Ministry of the Interior, with the bill it submitted to the Parliament entitled

“Arrangements for the land border posts, the strengthening of local self-government organizations and other provisions”. Also, from now on the private hosts are also charged with the guest fee.

It should be noted that an article of the consultation was withdrawn from this bill according to which the retroactive cleaning and lighting fees would be deleted upon declaration by the owners, when the property had not been declared to the Municipality as vacant.

Key points from article 30 of the bill:

1. A transient tax of 0.5% is imposed on the rental amount of a bed, rental room, apartment, space or place in an organized campsite, as well as on the price of a bed for hotel businesses and tourist accommodations of any functional type, as well as on the rental amount for each category of short-term rentals, when the stay lasts less than six months.
2. By decision of the relevant municipal council, the transient fee can be increased to 0.75% and can also be differentiated either by residential areas clearly defined with the decision in question either by types/categories of accommodation. The above decision comes into force three (3) months after its publication.
3. The transient fee is an income for the Local Municipalities and can be used to cover any expenses. The fee is borne by the guest, is written on the issued tax information and is collected by the lessor, who must then return it to the beneficiary Municipality within the VAT payment deadline. For those who are not required to submit a VAT return, the tax must be declared by the last working day of the month following each calendar quarter.

Specifically, article 30 of the bill states the following:

Article 30

Accommodation fee for transients, shops and thermal springs

1. On the paid rent of a bed, rented room, apartment , space or position in an organized camp, and on the price of a bed for hotel businesses and tourist accommodations of any functional form, as provided for in par. 2 of article 1 of Law 4276/2014 (A’ 155), as well as on the accommodation rental of each category of short-term rental, a transient accommodation fee is imposed at a rate of zero point five percent (0.5%), when the stay lasts less than six months.
2. The accommodation fee of non-residents of par. 1 constitutes income of the Local Self-Governing Organizations of the first degree and can be allocated for the payment of any expenditure. The fee is borne by the resident customer, it is written on the issued tax data, collected by the lessor and remitted by him to the beneficiary municipality, within the deadline for return of the Value Added Tax (VAT). For those not liable to submit a VAT declaration, the declaration of fees is submitted by the last working day of the month following each calendar quarter.
3. By decision of the relevant municipal council the accommodation fee transients, it can be increased to a percentage of zero point seventy-five percent (0.75%), as well as being differentiated either by residential areas clearly demarcated by said decision or by types-categories of accommodation. The validity of the above decision begins three (3) months after its publication.
4. On the gross revenues of: a) any type, form and name of stores, in which they are sold for consumption within of the premises of the shop or takeaway, food, drinks, coffee, soft drinks, dairy products and sweets, as long as they have counters or table seats, b) breweries and bars, regardless of specific name and category, c) canteens, d) night clubs, halls dance and other shops with drinks and entertainment, cafes, entertainment centers and dance centers with music and e) casino businesses and the businesses that operate within it, a fee is imposed in favor of the municipalities, in whose region the system of objective determination of the value of real estate. This fee is calculated at a rate of zero point five percent (0.5%) for the stores of c. a), b) and c), at a rate of five percent (5%) for the stores of c. d) and at a rate of two percent (2%) for shops in the area e). By decision of the relevant municipal council, the tax on the gross income of the shops of para. a) to c) can be increased to a percentage of zero point seventy-five percent (0.75%) and, in addition, it can be differentiated either by residential areas that are clearly demarcated by said decision or by categories of stores. The validity of the above decision begins three (3) months after its publication.
   At the end of this, the entertainment centers and the shops of the above cases that operate within hotel businesses, of any functional form and category, are included. the stores of the above cases that operate inside shopping centers, as well as in the organized sections of supermarkets (SUPERMARKETS) and department stores, where prepared foods are sold.
5. In the municipalities and in the areas-parts of municipalities, the system of the objective determination of the value of the properties does not apply, the end of par. 4 can be imposed by a decision of their municipal council.
6. The end of par. 4 can be imposed by a decision of the municipal council, at a rate of zero point five percent (0.5%), and in the following categories of shops: a) items of folk art, b) souvenirs and gifts, c) rental of local pleasure boats, water bikes, windsurfing boards, items used on the beach, schools for learning water sports and learning to dive, in general items used in the sea by bathers, d) winter sports, skiing and mountaineering items, schools for learning winter sports, e) rentals of cars, mopeds, bicycles and light personal electric vehicles (E.P .H.O.) and providers E.P.H.O. for shared use and f) tourist products-souvenirs of any kind.
   In the case of the sale of products and services in the context of the exercise of multiple economic activities by the above shops, for the determination of the fee due according to the above, the gross income, the which come only from the retail sale of the products and services that fall within the scope of the present, as they result from the declaration of par. 4 of article 6 of Law 1080/1980 (A’ 246) and the liquidation notes of Φ .P.A..
7. The fee of paragraphs 4 to 6 is borne by the customer and is indicated separately in the issued data, and is collected by the one issuing the bill, who is obliged to pay it, whether it is or is not liable to pay VAT, upon submission of a declaration to the A.A.D.E. , a fee of up to fifteen percent (15%). The validity of the decision of the municipal council begins three (3) months after its publication. The fee is borne by the user of the service and is indicated separately in the issued data, and is collected by the one issuing the bill, who is obliged to pay it to the relevant municipality.
8. In cases of non-submission of a declaration for the fees of .1 to 8, a fine is imposed on the debtor in accordance with article 73 of 24.9/10.1958 b.d. (A’ 171). In cases of late submission of a declaration or non-payment of fees, instead of the late payment interest of the Public Revenue Collection Code (law 4978/2022, A’ 190), a surcharge of two percent (2%) on the due fee is imposed on the debtor , for each month of delay, which, however, cannot exceed one hundred percent (100%) of the debt due each time.
9. From the total amount of revenue collected each month, a withholding and return percentage ALE 1440103001 of the state budget amounting to five percent (5%), in derogation of what is defined in article 98 of Law 4270/2014 (A’ 143). In addition, a percentage of ten percent (10%) is transferred to a special account held in the Deposits and Loans Fund (“Municipal Assistance Account”), in order to be allocated to financially weaker municipalities.