Greece Cracks Down on Undeclared Airbnb Income with Hefty Fines and Data Audits

The Greek Independent Authority for Public Revenue (AADE) has launched an extensive crackdown on undeclared income from short-term property rentals, such as those listed on Airbnb, Booking.com, and VRBO. Utilizing sophisticated cross-checking mechanisms and retrospective audits, the tax authority is targeting property owners who fail to report their actual rental earnings, potentially facing steep financial penalties.

At the heart of this effort are advanced algorithms designed to detect discrepancies between reported income and actual earnings from short-term rentals, particularly by private individuals not officially registered as businesses. The goal is clear: uncover unreported income and ensure compliance with tax obligations.

Last year alone, AADE identified 593 taxpayers who had concealed income totaling 8.9 million euros. These individuals were subjected to significant fines and back taxes. This year, the focus is expanding to include owners who rent out more than three properties without registering a business activity—thus avoiding social security contributions and VAT obligations.