Flatsharing is gradually becoming one of the most practical and sustainable housing solutions for students, young professionals, and seasonal workers in Greece. This trend is largely driven by rising rental costs in major cities and popular tourist destinations.
When two or more people share a home, it is important that their arrangement is clearly defined both legally and for tax purposes. Proper registration of the lease protects all parties, enables the use of the property as proof of residence, and ensures access to state benefits and housing allowances.
In Greece, flatsharing arrangements can be declared in several ways:
1. Joint tenancy
What it is
Joint tenancy applies when the property owner does not reside in the property but rents it to multiple tenants under a single lease agreement. All flatmates sign the same contract and are listed as co-tenants. This is the simplest and most transparent arrangement, as all parties have equal rights and obligations from the outset.
For example, if two people rent an apartment for a total of €800 per month, both are listed on the same lease and share the rent equally, paying €400 each.
How it is declared
The process is completed electronically via the AADE platform. The landlord submits the "Rental Property Information Declaration", including all tenant details. Each flatmate then logs into myAADE and accepts the lease, finalising the process. Once completed, the lease becomes fully legally and tax valid for all co-tenants.
Tax treatment
There is no tax relationship between flatmates. The landlord is taxed on the total rental income, while tenants have no taxable income arising between themselves.
Housing allowance & rent refund
The lease allows tenants to apply for housing allowance or rent refund schemes, provided they meet the relevant income criteria.
2. Separate rental agreements
What it is
In this arrangement, the landlord again does not reside in the property but rents out rooms individually. Each flatmate signs a separate lease agreement directly with the landlord and does not share a contract with the other occupants.
For example, in a three-bedroom apartment, the landlord may issue three separate contracts, one per room, with distinct terms such as duration and rent.
How it is declared
The landlord submits a separate rental declaration for each flatmate through AADE. Each record includes tenant details, lease duration, and agreed rent. Each flatmate then accepts their individual lease via myAADE. This creates independent legal relationships between the landlord and each flatmate, with no contractual link between them. Any change to one lease does not affect the others.
Tax treatment
The landlord is taxed on the total rental income received. Flatmates have no tax obligations towards each other and pay their rent directly to the landlord.
Housing allowance & rent refund
The lease allows tenants to apply for housing allowance or rent refund schemes, provided they meet the relevant income criteria.
3. Subletting
What it is
Subletting occurs when an existing tenant rents out part of the property they are leasing to a new flatmate. This creates a secondary rental relationship within an existing primary lease.
For example, a tenant renting an apartment for €900 may sublet part of it to a flatmate for €450.
Requirement
Subletting requires prior permission from the original landlord. It must either be explicitly permitted in the initial lease or approved later in writing and updated accordingly on AADE.
How it is declared
The original tenant submits a new declaration as a sublessor via AADE, including the subflatmate's details, rental duration, and agreed rent. The subflatmate then accepts the agreement through myAADE. This establishes a formal and independent rental relationship between the sublessor and subflatmate.
Tax treatment
Income received from subletting is considered taxable rental income and must be declared accordingly in the tax return under real estate income.
Housing allowance & rent refund
The lease allows tenants to apply for housing allowance or rent refund schemes, provided they meet the relevant income criteria.
4. Renting a room in the owner's primary residence
What it is
In this case, the owner lives in the property and rents out one or more rooms to third parties. This is a form of partial leasing of the owner's primary residence.
For example, an owner of a 100 m² apartment may rent out a bedroom while continuing to live in the same home.
How it is declared
The owner submits a rental declaration through AADE, including flatmate details, duration, and rent. The flatmate then accepts the lease via myAADE, making it fully legally and tax effective.
Tax treatment
Income from renting out a room is classified as taxable income from real estate and is taxed according to the applicable rental income scale.
Housing allowance & rent refund
The lease allows tenants to apply for housing allowance or rent refund schemes, provided they meet the relevant income criteria.
Which option is best?
Joint tenancy is generally the most suitable option when flatmates start renting together, as it is transparent and does not create additional tax relationships between them. Separate rental agreements offer greater flexibility, as each flatmate has an independent contract and can leave without affecting others. Subletting is typically used when a flatsharing arrangement is formed after the original lease has already begun. Finally, renting out a room in the owner's primary residence is a practical solution for homeowners who wish to generate income while continuing to live in the property.
Important notice
This guide provides general information for informational purposes only and does not constitute legal, tax, or accounting advice. Regulations and their application may change or vary depending on individual circumstances. For personalised advice, consultation with a qualified professional is strongly recommended before taking any action.