EOT license for lease of a villa
License granted by the greek organisation of tourism (E.O.T.) for the lease of touristic Villas
The new legislation regarding the Greek Organisation of Tourism, has new stipulations which make the procedure to get a license for the lease of a touristic villa easier.
In order for the Special License for the Operation of the Touristic Furnished Villas (as the meaning of the Touristic Furnished Villa is stipulated in this new legislation) to be granted, the applicant shall submit to the competent Authority of Greek Organisation of Tourism the following documents :
a. Application - Solemn Declaration according to the point a of the paragraph 1 of the article 150 of the Law 4070/2012 (A '182).
b Special topographic plan of the plot / land with the villa , drawn up in accordance to the stipulations of the new legislation.
c Copy of the building permit pursuant to item c `under paragraph 1 of Article 150 of Law 4070/2012.
d. Certificate of fire safety in accordance with point d `in paragraph 1 of Article 150 of Law 4070/2012 for the entire facility, issued by the relevant Fire Service, for the accommodations with capacity exceeding twenty (20) beds.
e. Solemn declaration of a mechanical engineer or electrologist engineer or engineer of energy technology or chemical engineer or an engineer of equivalent specialty, possessor of a degree or diploma , either as regards the adequacy of the facilities of disposal of sanitary wastes according to the legislation valid either as regards the connection with the sewerage municipality system.
f. Solemn declaration of the applicant or an appointed engineer in accordance with Article 8 of Law1599/1986 (A `75), stating that the property complies with the technical specifications outlined in the ministerial decision under paragraph 1b of the new legislation.
g. Proof of payment of a fee according to the item "η" of the paragraph 1 of Article150 of Law 4070/2012, as amended by the new legislation.
If the accommodations have swimming pools , the documents mentioned in the " b " ," c" of paragraph 2 of the Article 154 of the Law 4070/2012 (A '182) , are also requested.
- The Special License for the Lease of the Touristic Furnished Villa is issued by the competent Regional Office of the Greek Organisation of Tourism, with special reference to the case of existence of a swimming pool. The Special Permit is issued without pre-approval within ten (10) working days from the submission of the above documents, provided that all the legal requirements are fulfilled. If the period of ten (10) working days expires, it is presumed that the Special License for the Lease has been issued in accordance with paragraph 4 of Article 14 of Law 3844/2010 (A `63) and the applicant can seek a certificate from the relevant administering authority, which must grant it.
- The Special Lease Permit is of undetermined lasting. The documents, of which the validity may expire,are obligatory replaced before their expiration , otherwise the Special Permit is revoked by decision of the Head of the Competent Regional Service of Tourism of the Greek Organisation of Tourism.
The competent service of the Greek Tourism Organisation keeps a file for each touristic furnished villa , in which all the documents that are requested for the granting of the Special Lease Permit according to the law, are kept, and the Touristic Furnished Villa bears a special registration number (MHTE).
- The owner of a real estate that can be characterised as a Touristic Furnished Villa, according to the new legislation, can rent it wholly and not by departments , to natural persons, without the right to sub-lease it , for a period of at least one week and not exceeding the period of the total of three months within a year, while the subsequent lease for a period over three months of the same year is prohibited.
The owner of this real estate is not obliged to declare the beginning of a business at the relevant Tax Office, neither to be insured by any insurance organisation for this activity, but he is obliged to previously obtain the Special Permit for the Lease of a Touristic Furnished Villa , by submitting the aforementioned documents. In the relevant application, it will be mentioned that the villa will be operated according to the present terms, which statement will be also mentioned on the Special Permit , which , when it is issued, will be send from the competent service of the Greek Tourism Organisation to the relevant Tax Office.
The lease by this way, of more that two real estates that belong to the same owner, is prohibited.
- For the rental of villas, according to these terms, a simple private lease agreement is issued, which must contain a description of the property, the Special Registration Number of EOT (MHTE), address, details of the owner with his Tax Number and the competent Tax Office details of the lessee, the lease period and the amount of rent. The above agreement is certified by the relevant Tax Office within fifteen (15) days from its issuance of and in every case until the day the beginning of the lease. The income that is earned by this kind of lease of a touristic furnished villa is taxed separately according to the existing stipulations regarding income tax on income from leases.
- The Greek Tourism Organisation (EOT) and the relevant supervisory bodies of the Ministry of Finance are competent to proceed with actions in order to check the leases, according to the above terms, even after the Special Permit is granted.
- In all advertising and general promotional listings of such tourist furnished villas, which are presented in Greece or abroad by radio or television stations, through the daily or periodical press, through websites or the internet or through Internet search sites , must mention the registration number of the villa,
in a way by which it becomes clear and to the recipient of the advertising message. Against the offenders of this provision, including the possessors or operators of the above means, a fine, according to the paragraph 3 of article 165 of Law 4070/2012 (A 182) will be imposed.
Against the owner of a touristic villa who leases it without the stipulated Special Permit and by violation of the above terms , further to the stipulated tax penalties and the relevant penalties that are stipulated in the touristic legislation according to the Article 4 of Law 2160/1993 (`118), a fine of the amount of 50.000,00 Euros will be imposed by the competent territorial Regional Tourism Service of EOT , to the favore of the State Budget. The same fine is imposed to anyone who leases any kind of house as a touristic accommodation. Prior to the imposition of the fine , the accused person is invited to provide, upon receipt, a relevant explanation, within fifteen (15) days from the receipt of relevant summon. Against the decision imposing the above fine no administrative appeal of paragraph 6 of Article 4 of Law 3270/2004 (A '187) can be lodged.