15 Jun 2021 | Tania Tofaridou
Self-service (sharing economy) accommodation establishments: Registration Obligations
The recent amending Law (L. 9(I)/2020) to the "Regulation of the Establishment and Operation of Hotels and Tourist Accommodations Law of 2019 (L.34(I)/2019)" passed in 2020, has imposed on the owners of self-service (sharing economy) accommodation establishments new obligations in order to be able to offer their properties for accommodation to third parties. Firstly, the amending Law has defined that only individual furnished tourist villas and/or individual furnished residences and/or individual furnished apartments fall under the definition of self-service (sharing economy) accommodation establishments, which do not constitute a “hotel” or a “tourist accommodation” and each category must satisfy specific features and specifications.
In order to rent any property which falls under the above categories, it is a prerequisite to apply to the Deputy Ministry of Tourism to register such property in the Register of Self-Service (sharing economy) Accommodation Establishments and obtain a registration permit. The application must be accompanied by the necessary documentation and a Solemn Declaration. If a property is found to be rented and/or advertised without a valid registration permit, then the owner or the person managing such property is guilty of an offense and in case of conviction he may be subject to imprisonment or fine or both.
Notably, the Law, recognizing that many property owners live abroad or possibly do not have the time to take on the managing of their property, allows for the registration obligation to be undertaken by an “Operator” to whom the owner has assigned the management of the Property. In order for the Operator to register the self-service (sharing economy) accommodation establishment to the relevant Register, a special authorization must be granted by the property owner.
The Deputy Ministry of Tourism examines the Application and the Solemn Declaration within two months from the submission date and informs the applicant of the outcome of the Application. The registration permit is valid for three (3) years and must be renewed within three (3) months before the expiration of each registration term.
How can we help?
We can assist by providing legal advice as to whether your property falls under the definition of self-service (sharing economy) accommodation establishments and your obligations as the owner of the property;
Provide support and assistance for the registration of your property in the Register of self-service (sharing economy) accommodation establishments.
Author: Tania Tofaridou