From January 1, 2018, a mandatory tourist tax will be introduced in Greece, which will be levied on all tourists when staying in a hotel or licensed apartment - separately from the price of the tour. With details of the innovation - “Bulletin of ATOR”.

WHAT WILL BE THE TOURIST TAX RATES?

Despite all the negative assessments and forecasts regarding the decline in the competitiveness of Greece as a tourist destination,... And be there throughout the year, and not just.

So, from January 1, all foreign tourists in Greece will need to pay a tourist tax for every day of stay - on the day of arrival or departure from the hotel. The amount of tax depends on the star rating of the hotel.

The hotel has the right to refuse accommodation if tourists have not paid the tourist tax.

The rates are as follows: for accommodation in a 5* hotel - 4 euros per day per room, in a 4* hotel - 3 euros per day per room, 3* - 1.50 euros per day per room, 1* and 2* hotels - 0, 50 euros per night per room.

In addition, those tourists who will be staying in apartments will have to fork out extra money. For 4* class apartments - 1 euro per day, 3* - 0.50 euros per day, 1* and 2* - 0.25 euros per day.

HOW WILL THE TAX BE PAID?

According to tour operators, organized tourists will pay the tax separately and independently. This fee is not included in the package tour price. “Tourists will pay on site at a hotel, such as this one,” explained the.

According to the tour operator, on average the new tax will lead to an increase in price of 40 euros per tour. As the company emphasizes, “rather, this is more about temporary inconvenience, since tourists in Greece are not used to paying a fee.”

Organized tourists will pay the tax separately and independently. This fee is not included in the package tour price

The Biblio-Globus company draws attention to the fact that the hotel has the right to refuse accommodation if tourists have not paid the tourist tax.

“It takes time for both hoteliers and tourists to get used to it. It should also be noted that in other European countries the practice of collecting taxes from tourists has existed for a long time. For experienced travelers, the Greek tax will not be news,” experts say.

THERE WILL BE EXCEPTIONS

True, there may be exceptions: a number of high-category Greek hotels have already announced their readiness to charge the tourist tax to their account. As explained by Mouzenidis Travel, we are talking mainly about 5* Deluxe and Luxury hotels.

This information is also confirmed in: according to the tour operator, several Deluxe level hotels will not charge guests a fee; this list is currently being updated.

Mouzenidis Travel says that the list of hotels in which the tax fee is already included in the price will be known after the New Year holidays.

From January 1, 2018, tourists who stay in Greece for more than a day must pay an “accommodation tax.” Now a night in a hotel will cost an additional 0.5 – 4 euros, and renting a room or apartment will cost from 0.25 to 1 euro

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Controversial tax

According to government calculations, the new tax will bring about 80 million euros a year into the treasury. This is just one of the measures adopted by the Greek Parliament in May 2016 to stabilize the country's economy. At the same time, it was decided to increase VAT from 23% to 24% and introduce a special tax on cigarettes, tobacco and electronic cigarettes. Together with a number of other important initiatives, the new policy has already produced the first results: according to IMF specialists, Greek GDP growth in 2017 amounted to 1.68%, and in 2018 it will reach 2.5%.

According to government calculations, the new tax will bring about 80 million euros a year to the treasury.

On the other hand, the new tax caused disapproval from hotel market participants. Thus, the Greek Federation of Hoteliers (HFF) expressed concerns that such a measure would not have the best impact on the development of the industry, and asked to limit its effect to the summer period. “This will seriously affect any attempts to expand the tourist season, since, as you know, the cost of rooms in winter is much lower,” GTP Headlines quotes excerpts from HFF.

Hoteliers are protesting against the new tax and predicting a reduction in their profits by 435 million euros and losses of the Greek economy of 340 million euros

According to analysts at Grant Thornton, the accommodation tax will have a negative impact not only on the hotel industry, but also on the country’s economy as a whole: hoteliers’ profits will be reduced by 435 million euros, and the losses of the Greek economy will amount to about 340 million euros, which exceeds the potential profit in four times. According to SETE President Yiannis Retsos, the introduction of the fee will lead to an increase in the average cost of living by 5-6%, and for small hotels - by 10%, which will force their owners to bear the costs themselves.

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Rise of tourism

In 2017, a record number of tourists from abroad visited Greece. According to preliminary estimates by the Greek National Tourism Organization (GNTO), announced at the WTM international exhibition in London, this number will be about 30 million: 7% more than in 2016. According to statistics published by Athens Airport, international tourist passenger traffic in 2017 increased by 12% compared to 2016.

About 30 million tourists visited Greece in 2017.

According to the Bank of Greece, the amount of tourist spending from January to September 2017 broke a record of 13.02 billion euros - this is 1.24 billion euros more than the same period in 2016. The average length of travel during these months increased by 1.5%, and the average amount spent per trip increased by 1.4%.

The indicators of the hotel business have grown symmetrically. According to the Greek Statistical Service (Elstat), the number of nights that foreigners spent in hotels in Greece in the first three quarters of 2017 amounted to 63.1 million - 6.3% more than in 2016. Hotel occupancy also increased: from 54.1% in 2016 to 55.3% in 2017. In general, the turnover of the restaurant and hotel business in the third quarter of 2017 increased by 13.9% compared to the same period in 2016.

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Why is tax not scary?

“It is clear that Greece is heavily dependent on tourism and the hotel business, but other cities in Europe are successfully coping with similar fees,” according to the English company The Hotel Property Team. For example, according to The Guardian, the hotel tax in Berlin, Amsterdam and Cologne is 5% of the room bill, in Paris - from 20 cents to 1.5 euros per person per night, and in Rome, an additional fee for hotel accommodation can go up to 7 euros per night.

According to estimates by the Greek tour operator Mouzenidis Travel, the new tax will increase the cost of Greek tours by an average of 40 euros. “Rather, we are talking about temporary inconveniences, since tourists in Greece are not used to paying fees,” the Association of Russian Tour Operators quotes a representative of the company as saying. A number of five-star hotels said they would not charge the tourist tax separately, but would instead charge it to their own account.

According to preliminary estimates, the new tax will increase the cost of Greek tours by an average of 40 euros.

The additional fee is unlikely to seriously affect the number of tourists also because prices in Greece are significantly lower than in most other European countries. According to AirDNA (a service that processes Airbnb data), the average rental price in Athens is one and a half times lower than in Berlin, two times lower than in Paris and Rome, and three times lower than in Amsterdam.

When analyzing taxes in Greece for legal entities, value added tax (VAT) should be mentioned. This is the most important fee that is levied on all goods and services that exist in the country. Moreover, VAT varies depending on the type of production. Currently the following value added fee is set:

• Industrial goods and services - 19%
• Consumer goods - 9%
• Publishing books, newspapers and magazines - 4.5%.

Separate Greek islands (Lesbos, Samos, Skyros) provide significant benefits (up to 30% of the total VAT amount).

The following legal entities are subject to tax levies:

• Companies and organizations that receive over 80% of their income in Greece. It does not matter in which country they are registered. If the profit is received in Greece, then taxes will have to be paid in this state.
• Foreign companies conducting commercial activities in Greece. These include branches of large concerns registered in the country and managed from Greece. In order to avoid double taxation (Greece and the state where the company is registered), the necessary agreements are concluded.
• Construction companies carrying out capital construction or repair work in the country.

In turn, the following legal entities are exempt from Greek taxes:

• Vessels flying the Greek flag.
• Airplanes and ships operating in Greece under a Foreign flag.
• Real estate owned by consular and diplomatic departments.
• Income from national loans and bonds.
• Accrued interest on OTE bonds.
• Greek Orthodox Church.

The following tax rates apply to legal entities in the Greek legal framework.

I must say that the tax rate is uneven and may vary depending on the region of the country. For example, significant tax breaks may be provided on islands and resort areas.

The taxes on dividends accrued on shares of Greek companies deserve special mention. They also incur a significant fee. So, a citizen is obliged to pay about 10% of the amount of dividends received. And non-residents of the country must pay 26% of the amount of profit received on shares.

Moreover, significant fees are deducted even from interest income. For example, a foreign bank issued a loan to a Greek company for a year, and after the specified period it is obliged to pay 20% of the profit to the Greek state.

Slightly smaller payments are provided for income from deposits and repo transactions (15% per annum).

All this must be taken into account when purchasing shares or bonds of Greek companies or opening a deposit in a Greek bank.

Property taxes in Greece

It should be said that taxes in Greece for non-citizens of the country can also hardly be called humane. And if before 2008, Russians often bought real estate in this country, then a significant increase in the tax burden has made maintaining apartments and villas by the sea very burdensome.

So, all existing property taxes in Greece can be divided into several points.

Property purchase tax

New legislation came into force in 2014, replacing an emergency tax levy caused by the 2007 financial crisis. And if previously, a fee of 8-10% was charged for any purchased housing, now it has been significantly reduced.

Before purchasing a property, you must pay a local transfer fee. It is called Φορολογία Μεταβίβασης Ακινήτων. The payment amount depends on when the construction license was obtained.

If the license was obtained before 2006, then the local fee will be only 3% regardless of the value of the property. You will also have to pay 0.3% of the cost of housing (the so-called city tax).

In the event that a construction license has been issued after 2006, the property is subject to VAT at 23%.

This type of payment must be paid when signing the purchase and sale agreement, and only after that the document will be endorsed by a notary. For the work of a notary you will have to pay up to 1.5% of the transaction amount, and a real estate agency will take a commission of at least 2%.

Property maintenance tax

Taxes in Greece for non-residents for the maintenance of housing must be paid annually. In case of non-payment, serious penalties are inevitable, and in case of ignoring payments, the property may be completely confiscated by a court decision.

Annual property taxes in Greece (Φόρο Μεγάλης Ακίνητης Περιουσίας) are also progressive and depend on the total value of the building. It can range from 2 to 16 euros per square meter, and is multiplied by a coefficient that depends on the age of the building and its location. For the best real estate, the coefficient will increase the fee by 25%.

If the property is not elite, then the coefficient will increase by no more than 10-12%.

Empty plots of land are subject to their own fee, ranging from 3 euro cents to 9 euros per square meter.

You will also have to pay a municipal fee, depending on the municipality. It is included in the electricity bill and is required to be paid. As a rule, this tax burden does not exceed 0.5-1% of the cost of housing.

Tax on the sale of real estate

This type of fee was introduced in 2014. The calculation is carried out using a rather complex formula, which takes into account the difference between the cost of selling and purchasing real estate. In addition, a reduction factor (up to 40%) may be introduced, which depends on the period of ownership of the property.

In the vast majority of cases, a non-resident selling a house or apartment in Greece you will have to pay 15% of the sale amount. Naturally, this actually forces property owners to understate the value of their property on their tax return.

Rent tax

The country's top leadership is doing everything possible to increase fees and eliminate the “black” rental housing market. Since 2014, separate taxes have been introduced in Greece on the rental of any housing for non-residents.

If during the year you managed to get up to 12,000 euros for renting real estate, then you need to pay 11% of this amount. But if the rental property brought in more than 12 thousand euros, then the tax rate will be 33%.

This must be taken into account when purchasing real estate as an investment vehicle.

Donation of real estate

If the owner of Greek real estate decides to donate it or register an inheritance, he will have to pay a fee to the state up to 40% of its cost. The final amount is determined by a special commission and depends on the amount of the property, as well as on the degree of relationship of the donor.

For example, if a father gives his son a small apartment, then the duty will be no more than 5%. And if the donation occurs between two strangers, then the amount of the collection may be maximum.

Taxes in Greece for non-residents

Even if foreigners do not reside in the territory of the state, they are still required to pay taxes on profits earned in Greece. Moreover, foreign citizens have the right to claim tax benefits and compensation if at least 90% of all income is received in Greece.

• Income tax. Non-residents are taxed on all income of individuals, and in addition they are charged an additional 5% tax if they do not have European Union citizenship. Thus, the maximum taxes in Greece for non-residents of the country are may exceed 50% of total income.
• Income tax. For non-residents, the level of tax rate depends on the way in which accounting is kept. In total, accounting can be maintained using one or two entries. If accounting is carried out using one entry, then a deduction of 25% will be taken from the first 50,000 euros. All other profits will be subject to a 33% duty. If accounting is carried out using double entry, then the tax rate will be uniform and will not exceed 26%.

Conclusion

Taxes in Greece are standard for the European Union. However, due to the severe financial crisis of 2008 and the subsequent technical default, it was decided to shift most of the tax burden onto the shoulders of the country's citizens.

Strengthening taxes and fees helped solve the problem of filling the treasury in the short term, but played a cruel joke on the country's authorities. So in 2016, about a third of Greeks simply did not submit their declarations, refusing to pay fees.

Therefore, a reduction in the tax burden is inevitable and will occur in the next 2-3 years.

ATHENS, January 1 - RIA Novosti, Gennady Melnik. From January 1, 2018, Greece will introduce a new tax for tourists - from 0.25 to 4 euros per night in a hotel, depending on its class.

The government hopes to use the new levy to increase budget revenues, of which tourism accounts for a significant share, by more than 80 million euros. However, hoteliers and tour operators believe that the new tax will deal a blow to the industry, leading to a reduction in demand, turnover and the loss of thousands of jobs.

In Greece, tourism contributes about 20% of GDP, and the tourism industry employs 1.3 million people. This year, according to forecasts from the Ministry of Tourism, about 30 million tourists will visit Greece, each of them left an average of 600 euros in the country.

"Accommodation tax"

The law that every tourist visiting Greece will pay additionally for hotel accommodation was adopted back in May 2016, but it was decided to introduce the tax on January 1, 2018.

The "accommodation tax" is charged daily from the tourist for the use of a hotel room, rented apartment, furnished apartment.

Guests of five-star hotels will be charged an additional 4 euros per night, four-star hotels - 3 euros, three-star hotels - 1.5 euros, and hotels with one or two stars - 0.5 euros.

For renting one or two furnished rooms in an apartment or apartment, the fee will be 0.25 euros, for three rooms - 0.5 euros and for four-room apartments - 1 euro.

The levy was introduced along with a package of other tough measures to stabilize the Greek economy, which has been in deep crisis since 2009. International creditors set the condition for the allocation of further tranches of loans for the country to be a policy of “belt tightening” and the adoption of tough austerity measures.

According to the Ministry of Finance, the new tax was supposed to give the budget an additional 84 million euros.

However, hoteliers and tour operators do not agree with this assessment. In their opinion, the very concept of such a tax is wrong, and in conditions of fierce competition in the tourism market, it could reduce the attractiveness of Greece.

"Wrong Tax"

A study by Grant Thornton, commissioned by the Chamber of Greek Hoteliers, said that the “accommodation tax” would be a major blow to the competitiveness of the Greek tourism product, both in terms of price, quality and employment. In the medium term, the damage to the Greek economy from its use and reduced demand from tourists is estimated at 435 million euros, which is almost five times the possible financial benefit. As a result, the introduction of a new fee will lead to the loss of almost 6.2 thousand jobs,

Although the fee will not exceed 4 euros per room per night, it will affect the level of fees. In a global market where price comparisons take place via the Internet, every euro matters, experts say.

"The tax itself is stupid. It is wrong from the very beginning. Four euros per day for a five-star hotel. Let's figure out what a five-star hotel means? There is a hotel that costs almost a thousand euros per day, and there is a hotel in Athens that you can rent for both 80 and 100 euros. It’s strange that a tourist who pays a thousand euros per day will pay the same tax as a tourist who rented a room for 100 euros,” Dimitris Charitidis, managing director of TEZ TOUR Greece, told RIA Novosti. .

According to him, in some countries there is a tourist tax, which is immediately included in the room price, and the tourist does not see it, and there are no such problems. In Cyprus, such a fee is 1% of the cost of the tour, accommodation, it is included in the price, and the hotel then makes contributions to the state. There is such a collection in Italy and Spain.

“In Greece, the new fee will be paid by the tourist on the spot, when leaving the hotel,” said Haritidis, clarifying that the fee will be charged per room, and not per person.

Kharitidis emphasized that every tour operator is obliged to warn the tourist when purchasing a tour that the price does not include a tourist tax, and to name the amount. This is mandatory information and should be in every contract, he added.

Kharitidis also noted that so far the new fee has not had any impact on the growth of tour sales for next year. “On the contrary, there is a colossal increase in sales for early bookings from Western countries and from Russia,” said a representative of the travel company.

“The entire tourism world is telling the state that there will be damage, and the state is responding - we are seeing an increase in bookings, and so far we have not seen any damage,” he said.

Kharitidis expressed hope that the gathering will still be cancelled.

“The government said that this fee is temporary, it will be in the 2018-2019 season, and then it will be removed. Although I don’t believe it,” the expert noted.

Greece is one of the popular holiday destinations for Russian tourists. On January 1, 2018, a tourist tax was introduced here, which has existed in some for several years (you can read it by following this link). The same charge has been applied since 2017.

The Greek government resorted to this measure in an attempt to solve the problems that exist in the country's tourism industry.

Hellas is going through difficult times; we can say that this country is the most vulnerable part of the European Union. Therefore, it is no coincidence that the tourist tax was introduced now.

You need to know the following about this tax in 2020:

• Paid at the time of check-in at the hotel or inn.
• The amount of payment depends on the quality of services and length of stay.
• The tax must be paid at any time of the year.
• This fee is not included in the price of the trip or hotel stay.

In this case, it does not matter at all where the tourist is located, in the main part of Greece or, say, in Rhodes. Tourists holidaying in Crete will also have to pay a tax, as on other Greek islands.

If a visitor refuses to pay the tax, hotel employees have the right not to provide him with a room, even if it is booked.

What else you need to know about the resort fee

The introduction of the tax was not welcomed by representatives of the Greek tourism industry itself, as an outflow of tourists was predicted, especially during the off-season. But the government, in search of additional money, nevertheless decided to go this route. At the same time, we tried to think through the issue thoroughly and take into account all the nuances.

In the case when a room is booked remotely via the Internet, and then the reservation is cancelled, the tax is also not paid.