Planning to visit Greece? Here’s everything you need to know about the tourism tax changes

What are the new taxes?

Starting in 2025, Greece will implement increased daily accommodation taxes and new levies for cruise passengers.

During the peak season from April to October, the daily tax for short-term rentals will jump from €1.5 (Rs 134) to €8 (Rs 717), marking a fivefold rise. In the off-peak winter months, the tax will increase from €0.5 (Rs 45) to €2 (Rs 179), quadrupling the rate. Hotel taxes during the summer season will range from €2 to €15 (Rs 179–Rs 1,344) per day, depending on the star rating.

Cruise ship visitors will also face higher charges, with a €20 (Rs 1,790) tax for arrivals at popular destinations like Santorini and Mykonos., and €5 (Rs 447) for other locations. These adjustments represent one of the steepest hikes in recent years for Greece’s tourism sector.

The recent wildfire is part of a troubling trend of increasing fire frequency and intensity in Greece. (AP photo)

Why are these taxes being introduced?

The increased levies are a response to the rising costs of managing extreme weather events driven by climate change. Natural disasters like the recent deadly Storm Daniel have heavily impacted Greece’s public infrastructure and strained finances. The government expects to collect €400 million annually from these taxes, almost double the revenue generated in previous years, Reuters reported.

Indian tourists, who often combine luxury stays with local experiences, are likely to feel the pinch:

1. Higher Accommodation Costs: Budget travelers may need to re-evaluate their accommodation options as the tax hikes disproportionately affect short-term rentals and hotels.
2. Cruise Experience Costs: For Indians opting for Mediterranean cruises, the added levy could make Santorini and Mykonos less appealing compared to other destinations.
3. Seasonal Planning: Travelers might opt for winter visits to Greece, when accommodation taxes are relatively lower, although the weather may not be ideal for island-hopping.
4. Tour Package Adjustments: Travel operators may adjust prices to accommodate the new taxes, increasing overall trip costs.

Practical tips for Indian travellers

To mitigate the impact of Greece’s revised tourism taxes, travellers can consider a few strategies. Planning off-season trips during winter can help save on accommodation taxes, while exploring less-taxed destinations outside Santorini and Mykonos may reduce cruise levies. Budgeting ahead is essential to account for the increased daily costs, and booking accommodations early, before the tax changes take effect in 2025, can help secure more affordable options.