How to open a hotel in Greece? Greece will introduce an additional tourist tax Tour tax in Greece.

She made an invaluable contribution to European culture. Literature, architecture, philosophy, history, other sciences, state system, laws, art and myths of ancient Greece laid the foundation of modern European civilization. Greek gods known all over the world.

Greece today

Modern Greece little known to most of our compatriots. The country is located at the junction of West and East, connecting Europe, Asia and Africa. The length of the coastline is 15,000 km (including islands)! Our map will help you find a unique corner or island, which I haven’t been to yet. We offer daily feed news. In addition, for many years we have been collecting photo And reviews.

Holidays in Greece

Acquaintance with the ancient Greeks in absentia will not only enrich you with the understanding that everything new is well-forgotten old, but will also encourage you to go to the homeland of gods and heroes. Where, behind the ruins of temples and the debris of history, our contemporaries live with the same joys and problems as their distant ancestors thousands of years ago. An unforgettable experience awaits you rest, thanks to the most modern infrastructure surrounded by pristine nature. On the site you will find tours to Greece, resorts And hotels, weather. In addition, here you will learn how and where to register visa and you will find Consulate in your country or greek visa center.

Real estate in Greece

The country is open to foreigners wishing to purchase real estate. Any foreigner has the right to this. Only in border areas do non-EU citizens need to obtain a purchase permit. However, finding legitimate houses, villas, townhouses, apartments, correct execution of the transaction, and subsequent maintenance is a difficult task that our team has been solving for many years.

Russian Greece

Subject immigration remains relevant not only for ethnic Greeks living outside their historical homeland. The immigrant forum discusses how legal issues, as well as the problems of adaptation in the Greek world and, at the same time, the preservation and popularization of Russian culture. Russian Greece is heterogeneous and unites all immigrants who speak Russian. At the same time, in recent years the country has not met the economic expectations of immigrants from the countries of the former USSR, and therefore we are seeing a reverse migration of peoples.

Last year, travel lovers were shocked by the news: Greece was introducing a tourism tax. Of course, unnecessary spending is unpleasant for anyone, but this method of replenishing the state treasury is already quite common in the world. Thus, tourists pay the state for a comfortable stay in Spain, Italy, Serbia, Montenegro and even, starting in 2018, in some regions of Russia. The tourist tax in Greece was introduced on January 1, 2018 and the first travelers have already felt its effect. We will tell you in today’s article how the tax rate is formed and on what principle the fee payment mechanism operates.

What is a tourist tax in Greece

As you know, modern Hellas is going through hard times. The protracted crisis that the country has been in for almost a decade is forcing the government to adjust laws and find new ways to generate revenue. And so, having studied the experience of neighboring countries, the Greeks also decided to levy a tax on the stay of travelers in the country.

Greece itself received the news about the resort fee with caution. Many predicted a strong drop in demand for holidays in Greece, and, consequently, a decrease in the country's competitiveness in the tourism sector. The autumn-winter period was of particular concern: Greek hoteliers even approached the government with a request to charge an additional fee only during the holiday season. However, officials did not listen to representatives of the tourism industry, and the country is introducing a tourist tax exactly from January 1, 2018.

So, what does a tourist now need to know about the accommodation tax in Greece? Firstly, it is not paid to agencies, but directly to local hotels and inns. This means that Greece does not include a tourist tax in the cost of tours: the rate is paid separately from the cost of the entire stay. And, secondly, the amount of the tax payment is determined based on the number of nights of stay and the quality of services provided. Let us examine in more detail these rules for the formation of the Greek housing duty.

Tourist tax in Greece – when and who has to pay

All travelers who will reside in the country on legal terms are subject to payment of the fee, i.e. by officially registering accommodation in hotels, guest houses, apartments and other types of housing. It does not matter whether the holiday season or the winter period is chosen for the trip: you need to pay the accommodation tax not only in the summer months (as previously stated by the Greek authorities), but all year round. It also does not matter in which region of Greece travelers will live. Athens, Crete, Rhodes, etc. - the tax rate is the same everywhere, and is adjusted only by the conditions of the room and the date of arrival.

Read also: Climate, location and other background information about Greece

The tourist tax is paid at the registration desk immediately upon arrival, i.e. even before accommodation in rooms, apartments or suites. It is important to know that if a tourist refuses to pay part or all of the accommodation tax, the hosting party (hotel/inn/villa) has the right to refuse to provide services, even despite the reservation made for the room.

By the way, we note that this tax does not apply to booking accommodation at all: payment is made upon the fact of residence, i.e. from the moment of check-in at the hotel until the official check-out. In other words, if you have made a reservation and due to current circumstances are forced to cancel it, then, of course, you do not need to pay any taxes.

So, let’s summarize briefly and highlight the main provisions of the Greek law on tourism tax in 2018.

1. The holiday season and the city of stay does not matter. The accommodation tax applies throughout Greece all year round.
2. All travelers staying in hotels, inns, villas, guest houses and other types of accommodation are required to pay a tourist tax.
3. Tax payment occurs at the time of check-in.
4. The payment amount is calculated based on the rate for this room per one night stay.
5. If a tourist refuses to pay the fee, the hotel has the right to refuse accommodation.

Of course, when going on a trip, you need to have at least an approximate idea of ​​the cost of paying tax. The information presented in the next section will help you calculate the amount of additional charge per room.

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

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 Hoteliers Federation (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.

Photo: shutterstock.com 2

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.

Photo: shutterstock.com 3

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.

Greece is a favorite destination for tourists who want to become culturally active and soak up the seaside under the scorching Greek sun. A country with a rich history, impressive remains of an ancient civilization, many attractions and entertainment for travelers. Every year representatives from all sorts of countries in Europe, Asia, America and Russia flock here. Greece's experience of some economic turmoil makes the question urgent for many businessmen: how open a hotel in Greece, and some are also interested in the question of how advisable it is to invest in existing hotels for sale. We will discuss this in this article.

The prospect of opening their own hotel in Greece attracts entrepreneurs not only with the opportunity to make money in a tourist destination, but also to enjoy the delights of European civilization. The Greek land is washed by three seas at once: the Aegean, Mediterranean and Ionian. Needless to say, even the air there contributes to comprehensive health improvement.

What tourists look for in Greece

Greece is beautiful in many ways. Due to what criteria do tourists choose Greece?

1. Location. The flight from central Europe takes from three hours. You can fly from Moscow to Crete in 4 hours.
2. Climate. The islands, gently washed by the seas, are distinguished by their cleanliness, rich underwater world, summer heat that promotes tanning, as well as rich exotic nature.
3. Interesting excursions. Sightseeing tours are very developed in Greece. Travelers are interested in the ancient temples of Zeus and Hera, the Acropolis, Monasteries, the ruins of an ancient civilization and much more.
4. Ecology. The nature of the Greek islands promotes longevity and recovery from many ailments. For example, residents of the Crete peninsula can rightfully be proud of one of the lowest mortality rates from cardiovascular diseases.
5. Rich cuisine. The delights of Mediterranean cuisine can be described endlessly, and everyone knows about them. Many hotels emphasize the variety of food in their establishments.
6. Family holiday. In this country, everyone, young and old, can find entertainment and pleasure, which is why tourists from all over the world often choose this destination for a family vacation.
7. Additional entertainment. Greece will not let even the most demanding clients get bored. There is diving, underwater fishing, boat tours where you can enjoy the sunset with a glass of champagne, and the “ghost town” of Famagusta. In general, there are a million options for every taste and budget.

The advantages of Greece can be listed for a very long time. All the attractions allow the sharks of the tourism business to attract guests from all over the world and return those who have already visited again and again.

We have listed a lot of advantages of the Greek islands as an excellent base for forming a successful hotel business. However, before opening your hotel in Greece, you need to weigh the pros and cons.

Disadvantages of opening a hotel in Greece

Today, even an unprepared person can find a lot of offers online for the purchase of a ready-made hotel business in Greece. Such sales advertisements excite the minds of businessmen with the attractiveness of investment. They promise good annual profits based on an existing hotel. For example, a hotel costing 850 thousand euros promises a profitability of 120-150 thousand euros per year. The payback period indicated in the advertisement is 7 years. However, you should not blindly believe the calculations of those who are trying to get rid of their business.

Simple arithmetic calculations allow you to calculate discrepancies. The average cost of a room in a hotel of this category ranges from 40 to 80 euros (prices depend on the season and room category). The average hotel occupancy rate is 70%. We carry out simple calculations that show us profitability in the region of 70,000 euros. This is already two times less than the promised prospects.

We take into account monthly expenses for employee salaries, permits, advertising campaigns, technical support, products, utilities, etc. Let's not forget about taxes. This is generally a sore subject for business in Greece. According to official statistics, at least 30% of enterprises go into the shadow economy because they cannot withstand the tax burden. And to operate a hotel in Greece, you need a license, which cannot be obtained unless you pay taxes and maintain a certain staff. Arithmetic calculations turn out to be not so life-affirming.

Advantages of the hotel business in Greece

Greece is in the 10 most popular resorts in the world. Of course, in the absence of the necessary education and experience, the hotel business in any country will not meet the expectations of careless businessmen. However, even in crisis Greece, a lot of hotels are thriving and thriving, offering a good price-quality ratio, a number of exclusive services, good cuisine, etc. Therefore, a business in capable hands can and should become profitable.

If an entrepreneur does not know the Greek taxation system, the specifics of obtaining a license and other criteria from the inside, the option of opening your own hotel in Greece of a small format, such as a mini-hotel in a villa or private house, will be a good test of the pen and will significantly reduce the risks of investment. A mini-hotel may meet the requirements that will allow you to switch to a simplified system of taxation and obtaining a license. This license is issued for a season, and the annual net profitability of the hotel can be 5-7%.

From January 1, 2018, all foreign tourists who stay in Greece for more than a day must pay an “accommodation tax,” the amount of which depends on the type and category of accommodation. So, a night in a hotel will cost a tourist an additional 0.5–4.0 euros, and renting a room or apartment will cost from 0.25 to 1 euro.

Controversial tax

According to government calculations, the new tax will bring about 80 million euros a year to the treasury. This is just one of the measures adopted by the Greek Parliament in May 2016 in order 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 was 1.68%, and in 2018 it will be about 2.5%.

On the other hand, the new tax caused disapproval from hotel market participants. In particular, the Greek Federation of Hoteliers (HFF) expressed concerns that it 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.

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

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, their number will be about 30 million, which is 7% more than in 2016. According to statistics published by Athens Airport, international tourist passenger traffic in 2017 increased by 12% compared to 2016.

According to the Bank of Greece, the amount of tourist spending in Greece from January to September 2017 broke a record value of 13.02 billion euros - this is 1.24 billion euros more than the same period in 2016. The average duration of travel in these months increased by 1.5%, and due to this, the average cost 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 spent by foreigners in hotels in Greece in the first three quarters of 2017 amounted to 63.1 million - 6.3% more than in the same period in 2016. Hotel occupancy in the period under review 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.

Why is tax not scary?

“It is clear that Greece is heavily dependent on tourism and the hotel business, but other cities in Europe seem to be doing well with similar fees,” according to The Hotel Property Team. For example, according to The Guardian, the accommodation 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, in Rome an additional fee for hotel accommodation can reach up to 7 euros per night.

According to estimates by the Greek tour operator Mouzenidis Travel, the new tax will lead to an increase in the price 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 a fee,” the Association of Russian Tour Operators quotes a representative of Mouzenidis Travel. A number of five-star hotels have said they will not charge the tourist tax separately, but will instead charge it to their own account.

The additional fee is unlikely to have a serious impact on the number of tourists also because prices in Greece are in any case significantly lower than in most other European countries. According to AirDNA (a service that processes data published on Airbnb), 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.