The new measures to tackle the housing crisis, the winners and losers of the new tax changes and restrictions on short-term rentals.
Housing Situation Summary
The Greek government’s trying to ease the housing difficulties that so many households face. The plan mainly focuses on two things: cutting taxes on rental income, and figuring out how to get more homes onto the market.
They want to help both tenants and property owners, and they’re hoping to boost housing supply by making better use of public assets. One big move is lowering the tax rate on rental earnings.
Now, rental income between €12,000 and €24,000 gets taxed at 25% instead of the old rate. Plus, renters will get a yearly cashback on their rent payments every November.
That’s supposed to encourage people to declare what they really pay and cut down on all those under-the-table agreements. If this works, the government says they might cut taxes on rental income even more.
Meanwhile, new short-term rental platforms like Airbnb are facing limits until 2027. This mostly hits big cities, where tourist rentals have squeezed out long-term housing for residents.
Focus on Public-Private Housing Projects
There’s also a push for an updated social housing project, borrowing from old public-private partnerships but tweaking them for today. The program takes unused government properties and turns them into homes.
Take the Ziakos military base in Tavros or the Manousogiannakis property in Patras—both set for redevelopment into about 2,000 apartments. Of those, 25% go to armed forces personnel, and the rest are for first-time home buyers.
This way, public land that’s been sitting idle finally gets used for something people actually need. It’s a pretty practical way to add housing and lower market pressure.
Supporting Rural Areas and Small Islands
The plan’s got something for smaller communities too. Starting in 2026, property tax (ENFIA) gets cut in half for villages with under 1,500 people.
That’s meant to keep folks from leaving and maybe even draw some back, especially to remote islands and tiny towns.
Measure |
Details |
Target Group |
Timeline |
|---|---|---|---|
Lower rental income tax rate |
Reduced to 25% for income between €12,000-€24,000 |
Landlords and property owners |
Immediate |
Annual rent cashback |
Renters receive a payment each November |
Renters |
Starting now |
Ban on new short-term rentals |
Suspension of new Airbnb-type leases |
Urban housing market |
Until 2027 |
Redevelopment of public properties |
2,000 apartments, 25% for armed forces, 75% for citizens |
Military personnel and first-time buyers |
Ongoing |
ENFIA tax cut in small villages |
50% reduction for populations under 1,500 |
Rural residents |
From 2026 |
By offering tax relief, clamping down on short-term rentals, and building affordable homes, the government’s trying to give more people a shot at a decent place to live. The targeted measures for rural and island communities show they’re not just thinking about cities.
For anyone who wants to dig deeper, there’s more info about recent housing initiatives out there.
Property Owners: Winners and Losers under the New Rules
The tax changes coming in January 2026 will shake things up for property owners. About 161,587 taxpayers who make over €12,000 a year from rentals are set to benefit the most.
People who bring unused properties back onto the market or fix up their buildings will see extra perks too. The tax scale for rental income has shifted to make things easier for middle earners.
Now, a 25% tax bracket covers income between €12,001 and €24,000, instead of jumping straight from 15% to 35%. Here’s the new breakdown:
Income Bracket (€) |
Tax Rate (%) |
|---|---|
Up to 12,000 |
15 |
12,001 – 24,000 |
25 |
24,001 – 35,000 |
35 |
Above 35,000 |
45 |
This means a landlord making €20,000 will pay €3,800 instead of €4,600—an €800 yearly saving. The more you earn in those middle brackets, the more you save, up to €1,300 for someone earning €40,000.
Income (€) |
Current Tax (€) |
New Tax (€) |
Savings (€) |
|---|---|---|---|
15,000 |
2,850 |
2,550 |
300 |
20,000 |
4,600 |
3,800 |
800 |
25,000 |
6,350 |
5,150 |
1,200 |
30,000 |
8,100 |
6,900 |
1,200 |
35,000 |
9,850 |
8,650 |
1,200 |
40,000 |
12,100 |
10,800 |
1,300 |
Owners earning between €12,000 and €24,000 get the clearest tax relief. The government hopes this nudges people to report their real rent income, not just what looks good on paper.
They’re backing it up with a yearly refund equal to a month’s rent from November 2025. That’s supposed to help both landlords and tenants.
Owners who open up closed homes and put them back on the rental market get extended tax breaks. It’s a move to tackle housing shortages and breathe some life back into empty properties.
But landlords hoping to cash in on short-term rentals in central Athens are in for a reality check. Restrictions on new short-term leases for the first three properties stick around until at least 2026, especially in the city center.
So, if you were banking on Airbnb income, you might need to rethink your plan. There’s also a 50% ENFIA property tax cut for main homes in small towns starting in 2026, with the tax eventually phasing out.
This helps owners in tiny towns way more than those in the city. The government’s aiming for a balance—easing tax for many, keeping rental options open, and trying not to let housing costs spiral even higher.
All these changes are expected to cost about €90 million a year from 2027, but the idea is to help property owners without sudden tax hikes. Landlords and taxpayers should get ready for these updates before filing their 2027 tax returns, since that’s when the new brackets and benefits kick in.
If you want to get into the nitty-gritty, there are plenty of reports on the new property owner regulations out there.
Growth of rental limits
The government wants to keep the ban going on new short-term rental listings in central Athens. They’ve only applied it to three municipal districts so far, but it sounds like other areas could be next.
They’re hoping this will ease the housing crunch and maybe keep the local vibe alive in tourist-heavy neighborhoods. Prime Minister Kyriakos Mitsotakis has basically said extending the ban for another year in Athens is pretty likely.
Officials are still talking through which other regions might get the same treatment. They’re watching the data from tourism and statistics agencies, trying to find a balance between tourism demand and what locals actually need.
Rental numbers really aren’t the same everywhere. The national average sits at 46 short-term rentals per 1,000 people.
But in some tourist hotspots, the numbers are way higher:
Region |
Rentals per 1,000 residents |
|---|---|
Cyclades |
611 |
Ionian Islands |
340 |
Dodecanese |
125 |
Mykonos and Santorini, for example, blow past even the Cyclades average. It’s wild how concentrated these rentals get in certain places.
The government’s also extended a three-year tax exemption for owners who switch from short-term to long-term rentals. That’s their way of nudging more properties back into the regular housing market.
Apparently, this incentive’s actually having an effect. You can dig into the details if you’re curious—there are plenty of sources on these recent housing policies.
Starting October 1st, new regulations for short-term rentals kick in across the country. These rules will set clearer standards for how people can run short-term rentals, and the government hopes it’ll help keep the market in check.
