Greece will implement new, stricter regulations for short-term rentals starting October 1, 2025. The legislation introduces new operating standards, stricter inspections, and increased penalties for non-compliance.
Tag: short-term rentals
The Greek Parliament has approved new regulations for short-term rentals, removing the "residential" requirement to allow non-residential properties to qualify. The changes, set to take effect by October 2025, introduce stricter safety and functionality standards while granting broader ministerial authority to modify rules, sparking industry debate over regulatory consistency.
Lawmakers began debating proposed legislation on Friday to toughen rules for short-term rentals amid a surge in tourism, including a ban on using converted storage spaces and windowless basements.
A new bill introduced by Greece's Ministry of Tourism has removed renovated properties, including former warehouses and basements, from short-term rental platforms. The bill mandates stricter regulations and inspections, and properties must meet primary residential use criteria or be settled before 2011 to qualify. Property owners face hefty fines for non-compliance, raising concerns over the impact on investments in tourist accommodations.
Starting January 1, Greece will halt issuing Airbnb licenses in several districts of downtown Athens as part of new measures to address the housing crisis and increase property tax revenue. A revised tax and rental framework has been introduced, distinguishing between short-term and long-term rentals, with specific requirements for registration, tax obligations, and the offering of additional services. The changes aim to balance the needs of tourism with the shortage of affordable housing for Greek citizens.
As of January 1, Greece has increased its "Climate Resilience Fee," a nightly charge applied to hotels and short-term rentals. Designed to fund natural disaster preparedness, the fee replaces the previous "stayover tax" and varies by accommodation type and season. Revenue collected will support Greece's efforts to address the growing challenges of climate change while promoting sustainable tourism.
Demand for short-term rentals, particularly Airbnb, is expected to break records in Greece in 2025, with projections showing a strong start to the year. Pre-bookings are up by 10% to 15%, and rental capacity has expanded significantly, with 205,000 accommodations now available. As Greece ranks sixth in Europe for rental demand growth, the country’s tourism market is poised for another banner year.
Greek Tourism Minister Olga Kefalogianni has predicted a record-breaking year for tourism in 2024, with revenues expected to surpass €20 billion. Highlighting strong performance in key months and innovative new policies, including a globally pioneering hotel classification system based on environmental standards, Kefalogianni emphasized Greece's commitment to sustainable growth in its vital tourism sector.
The Airbnb market in central Athens is undergoing a dramatic shift as professional companies take the reins, managing the majority of short-term rental properties. New government regulations are also adding challenges for property owners, potentially reshaping investment strategies and market dynamics in the city.
Greece is implementing stricter regulations on short-term rentals, aiming to ensure safety and compliance standards. However, these new rules have sparked controversy among property owners and guests, who fear they could negatively impact the tourism industry and the availability of affordable accommodation.
The Greek government has introduced a tax exemption for rental income to encourage property owners to convert vacant or short-term rental properties into long-term leases. Under the new measure, landlords signing leases between September 8, 2024, and December 31, 2025, will enjoy a three-year exemption from income tax on rental income. The exemption applies to properties up to 120 m² and requires compliance with tax reporting rules. However, the exemption will be revoked if the property becomes vacant or is converted back to short-term rental during the lease term.
The Greek government is incentivizing property owners to convert short-term rentals (like Airbnb) into long-term leases by reducing the required short-term rental period from three years to one to qualify for a three-year tax break. However, property owner associations like POMIDA argue that linking the tax break to the initial tenant, rather than the property itself, creates insecurity and discourages participation.
Greece introduces new taxes on tourism and short-term rentals, aiming to address climate change, improve infrastructure, and alleviate housing shortages in popular tourist areas. The measures include a climate resilience fee, a cruise passenger levy, and restrictions on short-term rentals in central Athens.
New regulations are on the horizon for Greek hotels, including mandatory liability insurance for short-term rentals and an innovative environmental ranking system. The bill also allows for the operation of seawater swimming pools, promoting sustainable tourism practices.
The new Greek tax bill introduces major changes for short-term rental properties, including a ban on new permits for Airbnb-style rentals in central Athens for 2025. Property owners who violate these regulations face hefty fines, with penalties escalating up to €40,000 for repeat offenses. The bill also includes tax incentives for landlords who convert short-term rentals into long-term leases and introduces a higher ENFIA reduction for insured properties. These changes are set to reshape the rental market and offer new opportunities for property owners.
Greece is projected to collect €830 million in tax revenue from short-term rentals by the end of 2024, up from €70 million in 2017, according to Giorgos Pitsilis, head of the Independent Authority for Public Revenue. Speaking at the Prodexpo conference, he noted that 100,000 properties now have unique Property Registry Numbers for short-term leasing. Alexis Patelis, Economic Adviser to the Prime Minister, also announced a one-year ban on new short-term rental registrations in certain areas of central Athens, effective early 2025.
Tourism revenues in Greece dropped 1.8% in August 2024, despite a 6.6% increase in visitor arrivals, according to the Bank of Greece. This marks the second consecutive month of decline, raising industry concerns. Contributing factors include reduced tourist spending on non-hotel expenses, the rise of short-term rentals like Airbnbs, and higher airfare prices. As September approaches, stakeholders are monitoring the situation for signs of recovery.
Greek tourism is expected to see a 25% growth in 2024 compared to pre-pandemic levels, according to SETE President Yiannis Paraschis. Speaking at the "Reimagine Tourism in Greece" conference, Paraschis highlighted Greece’s strong recovery, with arrivals up 11% and revenues up 5.5%-6% from January to July 2023. He also addressed challenges like overtourism in popular destinations and called for a focus on value for money and sustainable growth in the tourism sector.
The Airbnb landscape in Greece is undergoing a seismic shift as Athens moves to prioritize long-term housing affordability. New licenses for short-term rentals will be frozen in central neighborhoods, while existing owners face new regulations and a potential occupancy tax increase.
He rented them like Airbnb, but hadn't declared them to the Short-Term Accommodation Property Registry…