Contracts & Taxation

What you need to know about contracts and tax

Contracts & Taxation

Most people who do holiday letting in Greece have a simple agreement form that includes a property description, the names of the clients, and the dates of arrival and departure.

However, if you do regular letting you may wish to check with a lawyer that your agreement is legal and contains all the necessary safeguards. If you plan to let to non-English speaking clients, you should have a letting agreement in Greek or other languages. If you use an agent, they will provide a standard contract.

Although the law is on your side, you should be aware that if a tenant with a short-term rental contract refuses to leave, it can take months to have him evicted. Note also that if you receive rent and accept a lessee without protest, you’re usually deemed to have entered into a contractual relationship, even if there’s no written contract.


You should inform the local tax office if you plan to let your property and must comply with the following regulations:

  • You must issue official tax receipts (including your tax number) for any rental payment received.
  • You must declare your rental income annually and may have to pay tax on it. Rates in 2005 ranged from 0 to 40 per cent.
  • In addition to income tax you’re also liable for an annual property income tax levied at a flat rate depending on the size and category of the property you let. For example, an apartment in Category A (the highest) is liable for a payment of around €200 and a villa around €300. This tax changes annually.
  • You must pay stamp duty (3.6 per cent of the rent) monthly.

Declaring rental income can be complicated, particularly as regulations change periodically so it’s advisable to use the services of an accountant.

Further reading

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