Changes for 2026: Taxation of rental income, opening of previously closed houses, ENFIA and house renovations.
The new tax package, which came into force at the beginning of the year, brings noticeable relief for many owners and landlords.
It lowers tax rates on rental income, reduces certain property taxes and offers tax exemptions and deductions for vacant flats, renovations and energy efficiency improvements.
These changes are intended to alleviate the housing shortage and stimulate the property market.
Households with average rental income can rejoice, as they will benefit particularly from a new intermediate rate of 25 per cent instead of the previous 35 per cent for income between €12,000 and €24,000.
Looking at specific examples, it can be seen that rental income of €15,000 to €40,000 leads to direct tax savings of between a few hundred and around €1,300.
Around 1.8 million taxpayers generate rental income, which together amounts to more than €8.5 billion annually.
Advantages for property landlords
Owners who re-let vacant flats or convert short-term rentals into long-term tenancies will receive a three-year tax exemption on rental income.
The rule applies if the new tenancy is signed by 31 December 2026.
The aim is to bring more vacant flats onto the rental market and slow down the rise in rents.
Flats that have been unused for at least three years and those that have previously been used for short-term rentals are eligible.
For short-term properties, the exemption only applies to units up to 120 m².
For tenants with more than two children, this limit increases by 20 m² for each additional child.
The minimum term of the new rental agreements must be three years.
If a tenant moves out before the end of the term, the exemption remains in place if the landlord concludes a new three-year agreement for the property as a primary residence within three months.
If the landlord fails to do so, the exemption ends.
Different rules apply to rentals to civil servants: in this case, repeated tenancy agreements with a minimum term of six months are permitted without the exemption expiring.
In this case, the landlord has six months to re-let the flat.
Otherwise, they lose the remainder of the tax exemption.
If the owner re-lets the flat on a short-term basis during the three-year period, the exemption is retroactively cancelled from the first year.
They must then pay income tax on all rent received tax-free up to that point.
Advantages at a glance:
- Three years of tax exemption if the switch to long-term rental is made in good time.
- The aim is to increase the number of available flats and slightly curb price increases.
- Applies to vacant flats (at least 3 years) and short-term flats (up to 120 m²).
- Surcharge of 20 m² for each additional child over two children.
Important obligations and consequences:
- A three-year contract must be concluded.
- Three-month notice period for replacement tenancy if the tenant moves out early.
- When renting to civil servants: six-month notice period, several shorter contracts are possible.
- Retroactive tax liability if converted to short-term rental during the exemption period.
Practical tips for owners:
- Check whether the flat has been vacant for three years or has only been rented out on a short-term basis.
- Pay attention to the main residence clause when providing proof of tenancy.
- Document and keep all tenancy agreements and dates for deadlines.
- If in doubt, seek tax advice to avoid unpleasant surprises.
The ENFIA tax
The ENFIA tax affects property owners in Greece. It is considered an annual levy on property ownership.
For many people, it is a significant item in their household expenses.
From 2026, there will be certain reliefs for residents of small villages. Anyone whose main residence is in a village with fewer than 1,500 inhabitants will receive a 50 per cent reduction on their ENFIA bill for this main residence.
This will happen automatically and only applies to natural persons with tax residence in Greece. However, some places in the Attica region are excluded.
The halving of the tax applies exclusively to rights to the house, i.e. full ownership, usufruct or mere ownership share.
The reduction is only available if the total value of the main residence is €400,000 or less. Other properties such as second homes, holiday homes, building plots and agricultural plots are excluded.
Main residences with an objective value estimate of over €400,000 are also not eligible for the reduction.
Around 12,700 localities are covered by the measure. Approximately 2.15 million people live in these settlements.
The relief programme is therefore aimed at residents of rural areas. The reduction is calculated automatically.
Owners usually receive the adjusted notices shortly after the annual payment requests.
From 2027, these main residences in the aforementioned localities will be completely exempt from tax. The halving in 2026 therefore acts as a transitional rule.
The ENFIA calculation remains technical in many respects. It is based on the value of the property as determined by official valuation parameters.
Different property rights lead to different assessment bases. If several people have a stake in a property, the respective form of legal share determines the tax burden.
In addition to regional relief, there have been adjustments to the so-called cost-of-living indicators. These indicators calculate a notional income for taxpayers who do not cover their standard of living entirely from their income.
Some of the previous rates for these indicators have been reduced so that fewer people are subject to additional tax.
The calculation of the notional housing costs for the main residence is carried out in stages according to living space. The scale assigns different euro amounts per square metre to a space segment.
Smaller flats up to around 80 square metres are subject to a significantly lower rate than large flats. In larger space segments, the euro amounts per square metre increase.
This gradation remains in place, but the euro amounts per square metre have been reduced in many categories. Often, it is a fixed percentage that reduces the burden.
Certain regions with higher square metre zone values receive surcharges on these notional housing costs. For zones with medium to high land prices, a percentage increase is added.
In very expensive locations, the surcharges increase further. The aim is to adjust the notional value of a flat to the real market structure of the area.
There is often an additional surcharge for detached houses because their use and furnishings differ from the average.
Second homes are treated differently from primary residences in terms of cost of living indicators. They are usually subject to a higher notional rate per square metre.
As a result, the tax burden for second homes is often higher. The aim is to take greater account of the tax effect on rented or non-permanently occupied properties.
In addition to the basic amount, the ENFIA bill often includes additional items. These can be municipal surcharges or levies, which vary depending on the region.
Some owners therefore see significant differences in the total burden in different areas. Even if the objective value of the property is comparable, it is worth taking a look at the complete list in the notice.
Those who own several properties have each property assessed separately. If you own a large number of properties, this can result in a cumulative burden.
However, there are provisions that allow for relief or graduated rates in individual cases. Allowances or limits on certain assessment shares can reduce the total amount if certain conditions are met.
The DEFA administration, which is responsible for collecting and administering ENFIA, offers digital services. Owners can view their statements online, plan payments and check instalment agreements.
Electronic communication is intended to increase transparency. It also speeds up processing.
If there are discrepancies in the notice, an appeal can be lodged. Taxpayers can object to errors in the valuation or excessive assessments.
There are formal deadlines that must be observed. Those who lodge an appeal within the deadline enable a review by the relevant tax authorities.
It is important for taxpayers to check their personal tax assessment. Changes in floor space data, ownership shares or the use of rooms can affect the basis of assessment.
Relocations, inheritances or changes in ownership structure also have an impact. If you are unsure, you should compare documents and seek professional help if necessary.
Finally, ENFIA also affects municipal revenues. Changes at the national level can have an impact on local budget items because taxes and surcharges are often linked to state regulations.
Local authorities monitor the adjustments in order to take their own measures or make budget adjustments if necessary.
Important points at a glance:
- 50% reduction in 2026 for main residences in towns with fewer than 1,500 inhabitants (with exceptions).
- Full exemption of the aforementioned main residences planned from 2027.
- Reduction applies only to main residences and only up to a full value of €400,000.
- Cost of living indicators (notional housing costs) have been reduced; gradation according to area remains unchanged.
- Surcharges depending on zone and for single-family homes remain in place.
- Second homes are assessed more strictly.
- Electronic services and appeal procedures are available.
- Renovation and modernisation regulations may have separate tax implications.
- Effects vary by household type and region.
The issue remains relevant for many owners because it has a direct impact on their annual tax burden.
Anyone who wants to understand their tax burden should check the new tables, review their tax assessment and take action if necessary.
Home renovation
From 2027, owners will be able to receive a tax reduction when renovating flats or commercial properties. Important: The work must take place in the current year and payments must be made electronically.
The tax relief is spread over five years. It reduces income tax slightly each year.
The maximum tax saving per year is £3,200. In total, you can save up to £16,000 over the five years.
How much exactly is there per year? Simply divide the total eligible costs by five – that is the annual credit.
Sample calculation:
- Total expenditure €15,000 → annual tax reduction €3,000 (15,000 / 5).
- Total expenditure €5,000 → annual tax reduction €1,000.
- Total expenditure €3,000 → annual tax reduction €600.
Key conditions:
- Payments must always be made electronically – i.e. by bank transfer or card.
- Receipts and invoices must be collected and forwarded to the tax authorities.
- Material costs may not exceed one third of the total costs. Only labour and execution costs are fully eligible for funding.
Practical tips for implementation:
- It is best to digitise receipts immediately and file them away securely.
- Before signing the contract, clarify what counts as material and what the invoice will look like.
- For larger projects, choose payment methods that allow everything to be tracked electronically.
- Ask tradespeople to clearly itemise labour costs on the invoice.
Advantages at a glance:
- Tax relief spread over five years – this helps financially after the renovation.
- Motivates you to carry out energy-efficient, functional or simply more attractive modernisation work.
- Applies to residential and commercial properties, as long as you comply with the conditions.
Short checklist before you start:
- Obtain and compare cost estimates.
- Determine the payment method – it must be electronic.
- Check the material share, which must not exceed one third.
- Keep all invoices and payment receipts.
Table: Impact of expenditure on annual tax relief
Total expenditure |
Annual tax relief |
|---|---|
€3,000 |
€600 |
€5,000 |
€1,000 |
€15,000 |
€3,000 |
€16,000 |
€3,200 (limit) |
The subsidy is particularly worthwhile for work involving a lot of manual labour, such as thermal insulation, window replacement, heating optimisation or major renovations. On the other hand, those who only purchase new appliances and buy a lot of materials will hardly benefit if the proportion of materials is too high.
