In a decision issued by the Second Chamber of the Council of State (decision no. 601/2025), the court found that a circular issued by Greece’s Independent Authority for Public Revenue (IAPR) was both unlawful and without legal standing.
The circular, dated April 9, 2024, introduced a standalone business tax specifically for short-term property rentals—a move that sparked strong reactions from property owners and rental platforms.
The legal challenge was brought by the Hellenic Property Federation (POMIDA), the Association of Short-Term Rental Companies, and five businesses active in the sector.
They argued that the circular unfairly classified private property owners as business operators, obliging them to pay a separate professional tax for each property they rent, even if they are not running formal businesses. The plaintiffs also claimed that the circular imposed additional income tax and indirect tax burdens without proper legal basis.
The court sided with the plaintiffs, emphasizing that the circular had a “regulatory character” but had not been formally published in Greece’s Government Gazette, a legal requirement for such measures to take effect. Instead, the circular was only posted online via the government’s transparency platform.
The judges concluded that this omission rendered the measure legally non-existent and subject to annulment due to concerns over legal certainty and procedural fairness.
Despite siding with the plaintiffs, the Second Chamber stopped short of issuing a definitive ruling. Given the broader implications of the case for Greece’s tax system and property market, the court referred the matter to the Plenary Session of the Council of State for a final judgment. The case will now be reviewed at the highest level, with State Councillor Efstathia Skoura appointed as the reporting judge.
