Greece, Paying for Holiday Accommodation in Cash?

lindos90

We have just booked a weeks accommodation in Greece this summer. We saw the accommodation on several websites at various prices, but found the owners website which was slightly cheaper, so booked directly with them.

(We are fairly sure that the site we paid, and the owners are genuine, as only a few moments after we sent out booking, the availability for the week we booked became unavailable on the villa website, and also on the other host sites advertising it. The names check out, trip advisor reviews seem genuine and all that jazz.)

We made the reservation and paid with a credit card via the website. Shortly afterwards I messaged the villa owners via their FB page to get confirmation that they had definitely accepted the booking, so we could buy our flights.

The owners confirmed and asked if we would consider paying in cash in euros on arrival, and offered a decent reduction for doing this. They said that the bank take a large commission/charges for handling the payment, and so they offer this as an option, they save some money and pass some of the saving onto the tourist.

As tempted as I am to make a saving, I am obviously cautious. I've not come across this before, and was immediately wary, however I'm not quite sure how it could be a scam, as we would not be giving any money until we get into the property. We would somehow need to cancel the 'pending payment' to make sure it couldnt be requested at a later date (just in case the 'scam' is to take cash AND the credit card payment)

Looking at google, paying for accommodation directly to the owner seems quite usual in Spain, but I can't find any mention of it for Greece. So thought I would ask the savvy holiday makers here for their views.

Anyone come across this, is it usual for villa owners to suggest cash payment after booking?

Voyager2002

I think that you would be safe enough if you collected the keys and entered the property before making the cash payment. I would certainly not suggest paying by bank transfer.


I suspect that the main saving to the owner is tax, rather than bank fees.

zagfles

It could be a scam but a more likely reason is a tax dodge. I doubt the bank charges are more than 2% or so, so if eg they're offering you 20% for cash I'd be very suspicious. Don't know about Greece but in some countries if you are seen as colluding in a tax dodge you could be in trouble. So if you do pay cash, insist on a receipt.

https://www.tornosnews.gr/en/greek-news/economy/32280-greek-tax-authorities-launch-“receipt-please”-campaign-for-tourists.html

Eros1000

Over the years we have stayed in many apartments in the Greek Islands and Crete. Almost all proprietors prefer cash. I suspect it will be the same with the villa owner.

lindos90

Thank you for the replies, I will think it over. Relief that its less likely a scam, but concerned of potential involvement with tax avoidance! I will make sure they are happy to provide a receipt.

Being savvy with money is one thing, but getting involved with tax avoidance is quite another! (not much sunshine in a prison cell! :rotfl:)

edit, They are offering just over 100E discount on a £1600 booking, so less than a 'worrying' 10% but sounds like its not just bank charge avoidance, and you could be right with the suggestion of tax avoidance then.

Ganga

Ask the owner if you can pay half when you arrive and the balance just before you leave that way if anything went wrong from day one you still have some cash to rescue your holiday.

lea2012

We got married in Corfu four years ago and paid almost everything in cash on arrival from our accommodation, to photographer, wedding planner, florist the whole lot. Receipt were just from a paper receipt book that you could buy in any High Street store. No supplier name or anything so could have been from anyone.

It will be fine, just pay on arrival.

z1a

Greeks prefer cash, obviously for tax reasons.

mgdavid

z1a wrote: »

Greeks prefer cash, obviously for tax reasons.

It's not just the Greeks.....

NoodleDoodleMan

It's not just the Greeks.....

Bodyswerving tax is a way of life in Greece.

https://www.dianeosis.org/en/2016/06/tax-evasion-in-greece/

macman

Greeks do have a fairly good justification for avoiding banks though, as it wasn't long ago when nobody could withdraw their own money for weeks.