Greece has decided to implement a new climate tax in 2024 keeping in mind the devastating floods and forest fires in the previous years.

The country hopes to rebuild by investing in the development of its infrastructure by way of an accommodation tax, which will become effective before the month of January comes to an end.

Consequently, the government has decided that it will be generating funds with the help of the climate tax to support efforts of reconstruction and bolster resilience with respect to the climate.

Climate tax

According to sources, tourists will now be liable to pay an additional fee when they check in at various accommodations across the country.

Experts believe that such taxes will only cause the travel and tourism sector to become even more expensive.

Moreover, the new tax payment system to be established is likely to be seasonal and thus, will only be levied during peak season.

As of now, the time period has been defined as starting in March and ending in the month of October.

It has also been revealed that the tax rates to be levied will vary based on the overall rating of each accommodation and the type.

Consequently, the rate will vary from €1 to €4 each night. This will mean that people staying in one- or two-star hotels and apartments will be required to pay a tax of €1.50.

On the other hand, guests at three-star hotels will be paying €3 and four-star hotels will cost an additional fee of €7.

Where luxury five-star hotel and house stays are concerned, tourists will be liable to pay €10 for each night.

Prices

The authorities have made it clear that these taxes will not be a part of the prices offered by travel agents or operators.

Moreover, tourists and travelers will have to make these payments in local currency or locally when they arrive at the accommodation.

On this note, the President of the Panhellenic Hoteliers Association, Grigoris Tasios, raised various concerns about this new tax.

He added that the climate tax is potentially going to have a negative impact on the travel and tourism sector in the country.

In his words, such a tax may discourage travelers from visiting Greece for vacations, thereby having a significant effect on tourism revenue and rates.

Greek government

However, in the off-season, which will begin in November and end in February, the government will be resuming the climate resilience levy at the same level as the previous bed tax.

Thus, the government expects that due to the new tax, the country will be able to soon generate an added revenue of around €300 million by the end of the year.

This is likely to double the budget of the special reserves, as per sources.

However, as per the previously levied accommodation tax, this climate tax will extend to short-term rentals that are generally booked through online platforms.

The Prime Minister of Greece, Mitsotakis, also gave his approval for the climate tax, saying that it demonstrates the commitment of Greece to meet fiscal targets despite various economic challenges in 2023.