Greece has activated a new, more favorable tax exemption designed to increase the supply of long-term rental housing. Property owners who rent out homes that have remained vacant for 36 consecutive months—or were previously used exclusively for short-term rentals—can now benefit from a three-year income-tax exemption.

Who Qualifies

According to the Finance Ministry regulation published in the Government Gazette, the exemption applies to primary-residence leases of properties up to 120 sq.m. (with an additional 20 sq.m. allowed per child beyond the second for tenant families).

Vacant properties must have been declared as “empty” on form E2 or, alternatively, must not have appeared as leased, owner-occupied, or made available free of charge in forms E1 and E2 over the three tax years preceding the new lease. No other lease declarations may exist for the property during that period and up to the start of the new contract.

Short-term rental properties must have been legally and exclusively used for short stays in the tax year preceding the long-term lease, with all required short-term rental filings submitted to the tax authorities.

Lease Duration and Continuity

The lease must last three years. If the tenant leaves early, the exemption continues only if the owner signs one—and only one—new three-year lease within three months. If that second lease also ends prematurely, the tax benefit is lost.

A special provision allows minimum six-month leases for medical and nursing staff employed in public institutions, teachers at public schools, and uniformed personnel. In these cases, the exemption is preserved if a new six-month or three-year contract is signed within six months.

Deadlines and Loss of Eligibility

Qualifying leases must be signed by 31 Dec. 2026. The benefit is forfeited if a property remains vacant for more than three months during the exemption period or, in special-category leases, more than six months. If a property is returned to short-term rental within the three-year period, the exemption is revoked retroactively and all previously exempt income becomes taxable.