The Greek government is taking decisive steps to address the impact of short-term rentals on the country’s housing market by implementing a new regulatory plan.
The focus will be on saturated urban areas in Greece, with a strategy that includes a temporary freeze on new short-term rental permits in neighbourhoods where such rentals exceed 5% of the total housing stock. This move marks a shift away from previously proposed broad caps on rental days, such as the 90-day limit, which has been set aside.
The new plan will involve restrictions that are tailored to specific neighbourhoods, with data being analysed down to the zip code level. This approach aims to balance the presence of short-term rentals with long-term leasing options more precisely. For instance, if short-term rentals dominate in areas like Koukaki and parts of central Athens or Thessaloniki, new permits will be restricted to prevent further saturation.
In addition to these restrictions, the government is considering measures to incentivise long-term rentals. One proposal includes a generous tax exemption for property owners who transition from short-term to long-term leases. Specifically, homeowners who make their properties available for long-term rental for at least three years could receive a three-year exemption from income tax, provided their properties were either vacant throughout 2024 or previously listed for short-term rentals.
This initiative is part of a broader strategy to address Greece’s housing issues, which will also be discussed by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair. The plan reflects a nuanced approach to regulating the short-term rental market while encouraging the availability of rental properties for long-term residents.
The government is also moving away from proposals that suggested imposing additional tax charges or penalties on unused properties. Instead, the focus will be on providing incentives to stimulate the long-term rental market and address housing shortages more effectively.
(Source: New Money)