When staying in hotels in Greece, you are probably used to the star rating system, which ranks a hotel based on its amenities, facilities, food, and hospitality. You can expect 5-star hotels to have the best facilities, and 2-star hotels to have the bare minimum.
You’re probably used to seeing this rating on the outside of hotels, but did you know that it also can be applied to luxury villas?
Star vs. Key System
Hotels, Integrated Tourist Resorts, Hotels established in traditional buildings and camping facilities are all considered “Main Touristic Accommodations.” These all are listed with the star system, and the Hellenic Chamber of Hotels for Main Touristic Accommodation applies the rating.
Touristic furnished apartments and rooms are considered Secondary Touristic Accommodations and are rated with the key system. The Greek National Tourism Organization (also known as EOT) is in charge of assigning this rating.
How are Star Ratings assigned?
In the case of hotels, the amount of the rating is dependent on a points system and can range between 2 and 5 stars. The points are gained by having the appropriate equipment in rooms and by having certain pieces of infrastructure.
Star Class | 5***** | 4**** | 3*** | 2** | 1* |
|---|---|---|---|---|---|
Minimum amount of points | 5500 | 4000 | 3200 | 2200 | 1500 |
* Tourist = This is the first star rating category – it has the bare basics: cold water, towels with soap for each visitor, lights, a mirror, 1 social room in the hotel, and a bed for each guest.
** Standard / Economy = The next step up. This requires hot and cold running water in the room, chairs, a table or desk, a night lamp, a drink glass for guests, a bottle opener, a shower rug and a covered dustbin in the bathroom, among other amenities.
*** Comfort / Standard = In the 3-star category, most of the rooms have a bathtub. Typically, most of the rooms have a radio and a TV, 2 social rooms on the premises, an expanded breakfast buffet, and a reception that is open at least 12 hours per day.
**** First Class = In 4-star hotels, the rooms typically have a bathroom with a washbasin, a shower and a toilet, a spare blanket, a reading lamp, definitely a radio and a TV, a minibar, and a reception that never closes.
***** Luxury = These accommodations have extra amenities in the room, like an extra table, a hairdressing table, a safe in the room, a hairdryer in the bathroom, a bathrobe for each guest, 2 restaurants, and a hotel bar.
Of course, there are some exceptions to this rule, like the ultra-luxury hotels in Dubai that are 6 or even 7 stars.
How are Key Ratings Αssigned?
The Key Rating system is not available publicly on the EOT website, but we can provide an estimate based on companies like Energy Financial Group, who provide rating services in Greece for both hotel and rental properties.
The Key Rating system applies to accommodations classified as “furnished rooms and apartments that are not hotel accommodation and have a capacity up to 20 rooms.”
They are classified in 3 “keys” categories, with 4 being the highest and 2 being the lowest, based on obligatory technical and operational specifications that have to be filled. As in the case of hotels, the villa must earn enough points to be in a certain category.
Keys Categories | 2 keys | 3 keys | 4 keys |
Minimum amount of points | < 3500 | 3500 | 5500 |
Benefits of Rating your Property
If you have a property of your own, you might be wondering what benefits a key rating would offer you. It allows you to offer breakfast or reception services, much like a hotel would.
Moreover, because the key rating comes from the Greek state, it adds value to the credibility of your property, especially if you can advertise this license to your guests.
You could also add your rating to any online or with print materials that display your villa. You would of course be required by law to display the code (also known as the MHTE number) on any collateral.
To What categories Does the EOT License Apply?
The license only applies to homes that are rented for short-term stays. A short-term stay is defined as 3 months or less.
If you are renting for over 3 months to one party, your home is not classified as a holiday rental and you can’t get a license.
It’s Possible to Get an EOT License… but is it a Good Idea?
It’s certainly possible to apply for your own villa to be licensed with the EOT and be assigned a star rating. However, most property owners choose NOT to get an EOT license. There are several reasons for this.
Long and Expensive Process
The process to be certified and rated by the EOT is long and complicated and requires fluency in the Greek language. You must work together with architects, civil engineers, the fire station, and likely a lawyer.
Here are just a few of the steps involved:
- A civil engineer will collect a series of architectural and structural papers.
- An EOT inspector will arrange to visit your villa and check that the building is consistent with the plans.
- You must receive a certificate from the local tax office that confirms you don’t have tax debts and that your criminal record is clear.
What Other Documents do I Need?
- A tax number (AFM) – required for many basic transactions in Greece
- A certificate from the tax office that you don’t owe any taxes
- Copy of your passport
- A copy of your criminal record. This can be acquired from KEP in Greece or from your home nation if you are not a Greek citizen
- A Fire Study, which has analyzed all the extinguishers and exit lights
- A Health Study for the drains and sewers, completed by an electrical or mechanical engineer
No Tax Benefits
Given the lengthy and expensive process, you would think there is a tax break for EOT license holders. However, this is not the case. There are no tax benefits to getting an EOT license.
Ever-Changing Laws
One other downside is that EOT laws are always subject to change. This means that it is hard to be pre-approved for an EOT license.
Other Limitations
There is a limit on the number of homes you can certify. In some cases, this is as low as 2.
All pools and properties on a shared plot must be issued an EOT license, regardless of whether all property owners intend to rent their villa.
What are my Alternatives?
There are other more grassroots ways to be rated without going through the EOT. if you have listed your property through Airbnb or Vrbo, you can of course gather ratings and reviews online. This won’t have the same weight as a government stamp of approval, of course, but is significantly simpler.
You will also get a “stamp of approval” for your Short-Term rental by getting a Property Registration Number (“AMA” is the Greek acronym), a unique eleven-digit number that is assigned to property owners.
This number is assigned by Greece’s Independent Authority for Public Revenue (AADE) and is required for property owners who lease out their homes on a short-term basis on online sharing platforms.
For help getting an AMA, several real estate offices offer AMA services for property owners.
Our Recommendation
It’s technically possible to be licensed by the EOT, but is not necessary and is likely not worth the trouble.
For more questions about listing your property in Greece or applying for an AMA, you can reach us at contact@elxis.com
