Greece’s highest administrative court, the Council of State (CoS), has begun deliberations on a significant tax dispute affecting short-term rental platforms, like Airbnb. The case centers on a controversial business tax requirement introduced by the Independent Authority for Public Revenue, also known as AADE.

Key Points of Contention
– The Independent Authority for Public Revenue issued a circular requiring separate business tax payments for each rental property in different locations. However, its legality has been challenged by short-term rental companies and property owners.
– The disputed tax amounts to €1,000 for legal entities and €600 for each additional property considered a “branch”.

Legal Arguments
Property owners and rental companies contest the circular on two main grounds:
1. Constitutional concerns: The tax burden wasn’t established through formal legislation
2. Legal certainty: The regulation lacks clarity and predictability in its application

Current Tax Structure
The circular’s requirements vary based on property location:
– Multiple properties in different locations: Each property requires a separate business tax
– Multiple properties in the same building: Only one business tax payment required

Market participants strongly oppose the measure, with industry representatives including POMIDA (Property Owners Association) and STAMA (Association for Short-Term Rental Companies) expressing optimism about the hearing’s outcome. In their view, the current tax structure is inequitable, particularly regarding the classification of separate properties as business branches. The Second Section of the Council of State has heard the case and will announce its decision at a later date. The hearing proceeded without requests for postponement, which industry representatives view as a positive sign.