I recently bought a home in Corinth and want to rent it out. If I use it a vacation rental or for long-term renters, what kind of taxation am I subject to in Greece? Does it count as Greek income?
You can certainly rent out your Greek property either on short or long term lease. In any case, according to the Greek tax regulations you will be subject to rental tax as you will be earning an income in Greece. The rental tax in Greece is currently calculated as follows: 15% for income up to12,000 euros; 35% for income from 12,000 euros up to 35,000 euros; 45% for income exceeding 35,000 euros and this indeed counts as Greek income.
You have the right to rent your recently acquired property under either a long-term or short-term status. The income of the rental is considered Greek income, is being taxed separately and the relevant taxes are paid in Greece. There is no difference for the calculation if it is for short- or long-term period. For individual net income tax on long-term and most short-term property leases is as follows: annual rental income tax rate is 1 to 12,000€, 15%; 12,001 to 35,000€, 35%.
As a foreigner you don't need to cover a certain living presumption, for instance, to real estate or the car you own. If you rent your property the income produced counts as Greek income and it is going to be subject to taxation.
As long as you have a property in Greece being used for short- or long-term renting, you are obliged to pay taxes for the income as follows. Real estate income currently earned is taxed independently at rates of 15% to 45%. Specifically, rental income is taxed incrementally, depending on its amount, as follows: 15% for the annual income portion of 1 to 12,000 euros; 35% for the part of the annual income from 12,001 to 35,000; 45% for the portion of annual income of 35,001 or more.
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