The new tax bill in Greece introduces significant changes for short-term rentals like Airbnb, with stiff penalties for those who flout the regulations. One of the bill’s key provisions is the ban on new short-term rental permits for properties located in central Athens. This ban, set to begin in 2025, will apply to the city’s first three municipal communities, effectively halting the registration of new Airbnb-style properties in the area for the entire year.
Penalties for Non-Compliance
The bill lays out strict fines for property owners who ignore the new regulation. Those who register new properties in central Athens for short-term rentals in 2025—whether identified through the official Register of Short-Term Rentals or flagged by cross-checks with platforms like Airbnb, Booking.com, and Expedia/VRBO—will be liable to a fine equal to 50% of their rental income, with a minimum penalty of €20,000.
For a repeat offence, the fine will escalate to 50% of the total rental income received up to that point, with a minimum of €40,000. This sharp increase in penalties aims to deter violations and ensure compliance with the new law.
Suspension of New Short-Term Rental Permits
From January 1 to December 31, 2025, the disposal of new residences for short-term rentals will be suspended in Athens’ 1st, 2nd, and 3rd Municipal Communities. During this period, property owners cannot register new properties in the Short-Term Rental Property Registry for these areas.
Existing properties listed in the registry will not be affected, but new listings for short-term rentals will be prohibited, marking a significant shift in the rental market for these parts of Athens.
Tax Incentives for Long-Term Leases
The new tax bill also includes provisions to encourage long-term rentals. Property owners who withdraw their properties from short-term rental platforms and instead offer them for long-term leases will be exempt from income tax on rental income for three years. This exemption applies to properties declared vacant or previously rented out on short-term platforms like Airbnb.
For properties to qualify for this exemption, they must meet the following criteria:
- Residential buildings must be up to 120 square meters in size.
- Lease contracts must be at least three years long, signed between September 8, 2024, and December 31, 2025.
- The property must have been declared vacant (using Form E2) or previously made available exclusively for short-term rentals in 2022, 2023, or 2024 (or 2025 if the lease is signed in that year).
These incentives aim to increase the availability of long-term rental properties in the Greek housing market while also providing tax relief for landlords who rent their properties out to traditional tenants.
ENFIA Reduction for Insured Properties
Another key provision in the tax bill is an enhanced reduction in ENFIA, the property tax. From 2025, owners of properties with a taxable value of up to €500,000 will receive a 20% reduction in their ENFIA tax if the property is insured against natural disasters such as fires, earthquakes, or floods. This is an increase from the previous 10% reduction. To qualify, the property must have been insured for at least three months during the previous year, with the reduction adjusted proportionally if the insurance coverage period is less than one year.
What This Means for Property Owners
The new regulations introduce major changes for those involved in short-term rentals in Greece. The fines for non-compliance are hefty, particularly for those in the centre of Athens, and the temporary suspension of new short-term rental permits in 2025 will reshape the rental market. However, the incentives for long-term leasing and the ENFIA tax reductions for insured properties provide new opportunities for property owners who adapt to the changing landscape.
For Airbnb hosts and landlords in Athens, staying informed about these new laws is important to avoid costly penalties and take advantage of potential tax exemptions.
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