Tourism

Sectorial legislation

Land use planning

The first step for the establishment of a tourist activity is the examination of land use in spatial planning and land planning regulations for the specific area. The Greek Council of State precedents provide that tourist establishments resulting important impacts on the natural and cultural environment and on residential areas have to be in compliance with spatial planning.

The special “Spatial Plan for Tourism” ¹ emphasises the strategic importance of tourism and aims at a) boosting competitiveness by modernising and improving the efficiency of tourism infrastructures b) encouraging sustainable development of tourism c) improving the quality of tourism as well as the protection of the environment.

Environmental

Investing in tourism requires primarily an environmental study (Environmental Impact Assessment). The consequences of launching tourist ventures and their impact on environment and cultural heritage are evaluated in this study. The results of the assessment lead to the Environmental Permit, on the grounds that the establishment does not generate serious impacts on physical and cultural environment, as well as on human life. Law 4014/2011 as amended and stands, specifies that the feasibility and suitability study concerning the planned tourist venture, has become part of the environmental licensing procedure, while the Ministry of Tourism shall deliver its decisive opinion for environmental approval.

The recent Ministerial Decree 1915/2018 (Official Gazette B’ 304/02.02.2018, amends the Min. Decrees 488963/2012, 167563/2013 and the 170225/2014 in accordance to the directive 2014/51/EU (amendment of the directive 2011/92/EU). The main points are : protection of the commercial and industrial confidentiality, obligation of the licensig authority to provide the interested parties with all environmental information as well as the EIS itself. The Ministerial decree 1958/2012 on the categorisation of projects has also amended minor issues.

The licensing procedure also involves building permits, approval of architectural designs and studies by the competent authorities, as well as an approval regarding specific tourist infrastructure i.e. conference centers or integrated tourist resorts. The last step in licensing procedure is the “notification system” by electronic registration. Οperating pemits are abolished and no longer needed. It should be mentioned that main tourist accommodation, which are mentioned below, should also be classified according to a 5 star ranking system.

Categorization of Touristic Ventures and Licensing Procedure

Law N. 4276/2014 specifies the new legal framework concerning touristic ventures and establishments. According to the above mentioned legislation, touristic ventures can be categorized as follows:

Main Touristic Accommodation:

• Hotels,
• Integrated Tourist Resorts,
• Condo Hotels,
• Hotels established in traditional buildings

Secondary Touristic Accommodation:

• Self-catered accommodation – touristic furnished mansions,
• Self-catered accommodation – touristic furnished residences

Special Tourist Infrastructure:

• Tourist Ports,
• Ski Resorts,
• Conference Centres,
• Golf Courses.

More touristic ventures and establishments are subject to Law 4276/2014 as well, but are not mentioned in this article.

What is the licensing procedure for establishing hotels and condo hotels (hotels in which ownership rights can be issued)?

The following common steps should be followed for the establishment of hotels and condo hotels.

• Environmental Permit, under the provisions of 1958/2012 Decision of Ministry of Environment, as amended. This licensing procedure has implemented the feasibility study and the suitability study regarding the chosen plot, in which the hotel shall be established,
• Building Permit from the competent Town Planning Authority,
• Approval of the Architectural Studies from the Regional Tourism Authority,
• Notification.

For establishing condo hotels in particular, the following steps are additionally required:

• Notarial deed for the issue of horizontal/vertical co-ownerships,
• Notarial deed for the issue of the Regulation Concerning the Co-ownerships and Operation of Condo hotel.

The above mentioned hotels are classified according to their technical and operational characteristics, under the 216/2015 Decision of the Ministry of Tourism as amended by the Ministerial decision 17352/2018. The competent authority for the classification is the Hellenic Chamber of Hotels.

The classification is based on a five star ranking system, which applies to every hotel, according to the provisions of the aforementioned 216/2015 Decision of the Ministry of Tourism.

What kind of touristic venture is an Integrated Tourist Resort?

Integrated tourist resorts, can be established by combining self – catered furnished residences and special touristic infrastructure i.e. golf courses, spas etc. These ventures should be established in a plot of at least 150,000 square meters. All the necessary documentation and studies concerning licensing procedure should be submitted to the Ministry of Tourism and in particular to the Special Authority for Promoting and Licensing Tourist Investments.

What is the licensing procedure that should be followed for the establishment of Integrated Tourist Resorts?

• Firstly, the issue of a Joint Ministerial Decision is required. which will specify and determine the following:
  • General layout plan, in scale, for the buildings and facilities,
  • Environmental Permit,
  • Feasibility and suitability approval of the chosen plot.
• Approval of the architectural designs.
• Building Permit, which should be issued by the competent authority (the Special Authority for Promoting and Licensing of Tourist Investments).
• A notarial deed regarding the establishment of horizontal/vertical co-ownerships.
• A Ministerial Decision for the approval of the Regulation regarding co-ownership and operation of the resort.
• Notification.

It should be mentioned that, according to Law 4276/2014, hotels established in integrated tourist resorts, are classified as 5 star ranking hotels.

What is the licensing procedure for the establishment of self – catered furnished mansions and residences?

The aforementioned tourist accommodation refers to autonomous residences, in autonomous plots, with independent entrance. Furnished mansions should be at least 100 square meters, while furnished residences should be at least 40 square meters. As far as furnished residences are concerned, no more than 10 houses in the plot are allowed. This kind of accommodation is not subjected to star ranking classification.

The licensing procedure requires a building permit by the local Town Planning Authority, in accordance to building prerequisites for buildings. Feasibility and suitability approval is not required, while environmental approval is necessary only under the provisions of 1958/2012 Ministerial Decision and under specific circumstances. An operating license is required under the provision of 277/2013 Ministerial Decision, which also specifies the technical and operation prerequisites.

The owners are legal or natural persons. The lease agreements are written contracts, submitted to the competent Tax Authority. The lease duration lasts from at least 1 week to 3 months per year. Taxation is imposed on the arising revenue according to the provisions of
Law 4172/2013.

What is the licensing procedure for the establishment of hotels in traditional buildings?

Hotels can also be established in traditional buildings, according to the provisions of presidential decree 33/1979. The operating permit requires:

• Approval of the study regarding the suitability of the building and the architectural designs.
• Approval of the furniture and the rest of mobile equipment.
• Depending on the kind of building a permit by the Archaeological Authorities or the Ministry of the Environment may be required.

The classification is provided by the 532/1994 Decision of the General Registrar of the Ministry of Tourism.

SPECIAL TOURIST INFRASTRUCTURE

What is the licensing procedure for establishing a conference center?

The establishment of conference centers requires:

• Environmental Permit, integrating the feasibility study and the suitability approval for the chosen plot
• Approval of Architectural Designs and a study regarding the sound protection of the center and the acoustic of the halls and auditoriums
• Building Permit
• Notification

The competent authority is the Special Authority of Promoting and Licensing of Tourist Investments.

What is the licensing procedure for establishing golf courses and ski resorts?

For these facilities the following common licensing steps should be followed:

• Environmental Permit, integrating the feasibility study and the suitability approval for the chosen plot. For ski resorts in particular, the environmental permit is issued by a Ministerial.Decision
• Approval of Architectural Designs
• Building Permit
• Notification

The competent authority is the Special Authority of Promoting and Licensing of Tourism Investments.

What is the licensing procedure for the special (spatial) planning and the establishment of Tourist Harbors and Marinas

• According to Law 2160/1993 and the recent Law 4276/2014 three types of tourist harbors are specified: Marinas, Tourist shelter ports and Anchorage. The establishment of tourist harbors requires the following steps: The approval of the special (spatial) planning study, the environmental permit and the building permit for all planning facilities, have been integrated in one licensing procedure. The aforementioned studies and the relevant documentation should be submitted to the Ministry of Tourism and forwarded to the Permanent Committee of Tourist Harbor, which either approves or rejects the project. A Joint Ministerial Decision follows the approval.
• Law 4559/2018 amended Law 2160/1993 on marinas. The competent authority of the Ministry of Tourism forwards the application and the relevant file of documents on the strategic impact assessment to the competent authority of the Ministry of the Environment, and follows the procedure of informing the public. Publication expenses shall be borne by the applicant.
• The interested party, private or public entity, elected via public procurement procedure (unless only one party is interested), shall be delegated to administer and operate the harbor as well as using the land premises. A Ministerial Decision is required and a concession agreement shall be signed by the Public Sector and the delegated entity.
• As soon as the marina’s facilities and premises are constructed, the delegated party should submit to the General Registrar of the Ministry of Tourism all the necessary documentation and invoices described in the provisions of Law 2160/1993 in 2 months, in order to obtain, the Ministerial Decision for the Operating Permit.
• The issue of a Ministerial Decision for the approval of the Regulation regarding the Operation of the Tourist Harbor, is also required.
• The issue of a Ministerial Decision determining the docking prices is finally required.

The profit arising from the use of the harbor, is subject to Taxes according to Law 4172/2013. Additionally, fees and taxation for services provided by the competent Local Authority should be paid annually .

What is provided for alternative tourism- special kinds of tourism?

According to an Act of the Ministry of Tourism (Official Gazette B’ 1707/ 14.08.2015) alternative tourism refers to athletic tourism, marine tourism, countryside tourism, health tourism, gastronomic tourism etc.

It aims at the differentiation and enrichment of Greek tourism by the exploitation of alternative kinds of tourism, on highliting and exploitation of the natural and cultural environment. Investments on alternative tourism will be carried out via the above mentioned Act of The Ministry of Tourism.

The Ministry of Tourism has already submitted a bill on special kinds of tourism to Parliament. It refers to coutryside, marine, health, religious, cultural, athletic and conference tourism.

Development law

The recent development law 4399/2016 (Official Gazette 117/22-06-2016) aims at the support of entrepreneurship in Greece and provides incentives for economic growth especially in the provinces. Some examples of support by law 4399/2016 are: establishment or extension of hotels, modernisation of old units.

FAST TRACK

Does the Fast Track law apply to tourist ventures?

The Fast Track Law (3894/2010) as amended, provides a stable and transparent set of investment rules, procedures and administrative structures for the implementation of large scale public and private projects. The Law aims to abolish critical obstacles that have inhibited major investment in Greece, i.e. bureaucracy, the complexity of legislation and lack of transparency.

The objective of the Law is the development of investment plans that create long-term and wide-ranging positive results and that have a significant beneficial impact on National Economy.

This Fast Track law streamlines the licensing procedure for Strategic Investments, making the process easier, smoother and more attractive. It is important to note that the Fast Track process is already in effect and operating.

What are the Key features of the Fast Track Law (4146/2013)?

• The General Secretariat for Strategic and Private Investments will undertake all licensing procedures, including the issue of certain licenses. The licensing process for investment plans is ran by the General Directorate of Strategic Investments.
• The framework for Strategic Investments is broadened, and given that supporting companies already in operation are considered crucial for the national economy, they may also be included in it e.g. companies currently operating in Greece can be admitted if their business plan guarantees the retention of at least 600 jobs.
• The role of the Interministerial Committee of Strategic Investments (I.C.S.I.) is reinforced.
• A more efficient and legally robust process for handling requested deviations (planning, building terms).
• Tax incentives, such as ensuring a stable tax regime and tax exemptions are granted.
• Possibility of land expropriation and concession of coastal areas near the plot .
• In the event a permit is not issued within the required deadline, the Minister of Development is authorized to issue it within one month.
• The granting of residence permits for executives of Strategic Investments and their families. Additionaly third-country citizens and their family members, who proceed in buying real estate property in Greece exceeding € 250,000 in value, may obtain residence permits.

Special Spatial Development Plans of Strategic Investments (Fast Track)

Special Spatial Development Plans of Strategic Investments allow the State to intervene in cases where the use of specific land is deemed vital for an investment to proceed.

They are introduced regarding Strategic Investments on private properties and cover the issuance of Presidential Decrees regarding the land use, the type of investment, the location and the granting of permission for seashore and coastline infrastructure. This provision will apply according to the implementation of the Special Spatial Development Plans of Public Property (Law 3986/2011 regarding public property).

Airbnb

Airbnb is a privately held global company that operates an online marketplace and hospitality service which is accessible via its websites and mobile apps. Members can use the service to arrange or offer lodging, primarily homestays, or tourism experiences. The company does not own any of the real estate listings, nor does it host events; as a broker, it receives commissions from every booking. According to the information posted on the website, there are registered accommodations in more than 34,000 cities and 191 countries (June 2016). Airbnb is an easy way for the user to take advantage of his space by presenting it to millions of users.

The legislative framework in Greece is under the provision of Law 4446/2016 and Law 4772/2017 which have brought about amendments to the legal framework concerning subletting for a short period of time in the context of the sharing economy.
In particular, Article 111 of Law 4446/2016, as amended and it stands, specifies among other things:

• The terms of use of the online platform as well as the submission of a statement from both the host and homeowner. In case of violation of these strict rules a separate administrative fine is imposed.
• The subletting for a short period of time of more than two (2) real estates per host is not permitted.
• The rental of each real estate must not exceed ninety (90) days per year and for islands of less than ten thousand (10,000) inhabitants sixty (60) days per year.

Furthermore, a detailed tax treatment of the host is presented under the provision of Article 39A of Law 4172/2013 (Income Tax Code). It is mentioned that the income earned by subletting for a short period of time is exempt from VAT.

Specifically, it is foreseen that the income earned by individuals is an income from immovable property under the provision of Article 39 par. 4 and Article 40 of Law 4172/2013, as amended and it stands, if the real estate is rented furnished without the provision of any service. On the other hand, if the host offers services the income is an income from a business activity under Article 21 of Law 4172/2013, as amended and it stands. Moreover, the income earned by legal person or legal entities is considered as an income from immovable property as well.

The decision of the Governor of the Independent Public Revenue Authority No. 1187/2017, as amended and it stands, specifies the new legal framework concerning subletting for a short period of time in the context of the sharing economy. According to this, the following is foreseen: a) The Registration and Termination Procedure in the Short Term Residence Register, b) The required Short Term Residence Register Data, c) The Control Procedure - Control Bodies - Penalties of the Short Term Residence Register, d) The Short Term Residence Requesting Procedure, e) The Required Short Term Residence Statements, f ) The Audit Procedure - Control Bodies - Penalties for the Short-Term Residence Declaration and finally, g) The Obligation to Submit Information on the Lease of Real Estate.

In that regard, the decision of the Governor of the Independent Public Revenue Authority No. 1162/2018 specifies the obligators to submit in details a “Real Estate Lease Information Declaration”, the Procedure for submitting the “Real Estate Lease Information Declaration” through the electronic application of the e-Government Directorate, the Submitted Real Estate Lease Information and, finally, a proof of submission, sanctions, briefing of contractors and the Tax Authorities.