For years, short-term rentals like Airbnb were the “golden goose” for thousands of Greek property owners: fast profits, high demand from tourists, and far better returns than traditional leases. But the tide is turning.
As of today, new restrictions, tighter inspections, and heavier tax burdens are reshaping the landscape. Many landlords are now reconsidering their options and turning back to long-term rentals, where stability—and significant tax breaks—await.
New rules, big fines
Any lease lasting up to 59 days is officially “short-term.” To rent legally, owners must register their property, obtain a listing ID, and file declarations with the tax authority for every booking. Non-compliance is costly: fines start at 5,000 euros and can soar to 40,000 euros in severe cases. In some areas, such as central Athens, new Airbnb registrations have already been frozen.
Tax burdens squeeze profits
The financial rules are equally tough. Owners with up to two properties are taxed as individuals, but those with three or more are treated as businesses. That means 13% VAT, plus a climate resilience levy, an accommodation fee, and an additional municipal tax. For many, the bottom line is shrinking fast, raising doubts about whether Airbnb is still “worth it.”
Incentives for long-term rentals
To ease the housing crunch, the government is offering an attractive deal: a three-year income tax exemption for homes up to 120 sq.m. that switch from Airbnb to long-term leasing—or return to the market after years of vacancy. The measure applies until 2026, with possible extensions to 2027.
If a lease ends early, landlords can still keep the benefit as long as they secure a new tenant within three months.
Broader tax reforms ahead
The package also includes sweeping changes for all landlords:
• A new 25% tax rate on annual rental income between 12,001 euros and 24,000 euros, effective 2026.
• Mandatory rent payments via bank transfer.
• A unified property register (M.I.D.A.).
• Gradual reduction of property tax (ENFIA) on primary homes in villages under 1,500 residents, leading to full abolition in 2027.
• Extended tax breaks for renovations and new builds.
Greece’s Airbnb era is not over—but the easy money days are. For many owners, the safe bet may once again be the traditional, steady tenant.
