Filenews 10 February 2023 - by Adamos Adamou
Since last Tuesday the 7th of the month, the legislation has been activated, which obliges those who own and advertise properties for short-term rentals through the internet and platforms, such as Airbnb, to be registered in the Register of Self-Service Accommodation of the Ministry of Tourism. However, a quick look at the internet reveals that those who still offer short-term rentals do not post, as they are obliged to, the relevant license and mark that they should obtain from the Deputy Ministry of Tourism, after their registration in the relevant register.
In short, and under the law, they are illegal and could, if reported or identified by the Deputy Ministry of Tourism, be subject to an administrative fine or other penalties, based on the current legislation. Hypothetically, however, as the serial with the operation of the relevant registry and the obligation of those who offer short-term rentals, it seems that it will continue, since the Parliament is preparing for a new extension of the legislation, which as mentioned came into force only last Tuesday.
This will be the second extension, as the Parliament has decided in the past to extend the grace period for registration, which normally expired on February 7, 2022 under the legislation passed in 2020. The extension was approved by the Plenary Session of the Parliament due to the practical difficulties faced by property owners to register in the registry that was decided, resulting in the grace period being extended until February 7, 2023. However, since the issue was discussed several times in the Committee on Trade of the House, the same Committee has been discussing the issue again since week, as well as a proposal that was prepared for a new extension of the activation of the legislation for another year and specifically until February 7, 2024.
In its first meeting after the elections, on the 14th of the month, the Committee on Commerce of the Parliament will discuss a proposal by DISY MP Kyriakos Hatzigiannis to amend the Regulation of the Establishment and Operation of Hotels and Tourist Accommodation Law", in order to extend the transitional period for the registration of self-catering accommodation in the Register of Self-Service Accommodation for another (1) year, that is, until 7 February 2024'.
According to the explanatory memorandum, the new extension is deemed necessary "as a large number of owners of self-catering accommodation have not been able to submit applications for registration of their accommodation in the aforementioned register in a timely manner, due to the difficulties that still exist in the process of submitting the necessary data, as well as the adverse effects resulting from the prolonged period of the COVID-19 pandemic and the war in Ukraine". It is not excluded that the Deputy Ministry of Tourism is also aware of the proposal, hence there was no official announcement about the activation of the legislation and about the obligations of property owners who advertise and make available on the internet short-term rentals of premises.
License with €222 for three years
The last official announcement of the Deputy Ministry of Tourism on the issue was issued in mid-November, in which it recalled the provisions of the legislation - which is not excluded to be extended. And that from February 7, the owners of premises will be able to advertise and / or rent the self-catering accommodation, provided that it is registered in the Register of Self-Service Accommodation and has received a special mark and registration number from the Deputy Ministry of Tourism, which will be indicated on each platform where the accommodation will be advertised, as well as in all relevant transactions. He also reminded that the registration fee for self-catering accommodation for each self-service accommodation is €222 every three years and that the income from the rental of self-catering accommodation is subject to income tax and VAT, based on the provisions of the respective legislations. Furthermore, the Deputy Ministry of Tourism said that self-catering accommodation will also be subject to overnight fees to Local Authorities, inviting interested parties to contact the relevant Services (Department of Income Tax and Local Authorities- local Municipalities and Community Councils).
POINT OF VIEW
Extension is not enough
If the Parliament proceeds with a new extension regarding the obligation to register in the register of self-catering accommodation, it will have to examine at the same time the reasons that the three years that have passed since the passing of the legislation have not been enough for compliance of those who have apartments and villas to visitors. The pandemic may to some extent have caused problems in the submission but it is certainly not the main culprit of the need for a new extension. If, in fact, the State wants to legalize this activity and also have income, it must make it easier for owners to register in the relevant register. Simplifying both the relevant procedures and the documents requested in this direction.
AA.
