The Greek government is mulling a package of tax breaks and support measures aimed at easing the burden on property owners and renters while also cracking down on undeclared rental income.

According to government sources, the proposed changes under discussion include modifications to the tax scale for rental income — with potential reductions in tax rates for landlords — and new deductions for tenants.

The move is part of an extensive policy agenda to be unveiled by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair (TIF) in September. This reportedly includes proposed reforms to the taxation of rental income and incentives for tenants in rented primary residences.

Key Measures on the Table

  • Revised Tax Brackets for Rental Income
    The current rental income is taxed separately from the first euro at the following rates:
  • 15% for annual income up to €12,000
  • 35% for income between €12,001 and €35,000
  • 45% for income above €35,000

A new proposal introduces a 5% starting tax rate for the first €5,000 of rental income. This would result in a reduction of tax from €750 to €250 — a €500 saving. For someone earning €12,000 from rent annually, their tax would drop from €1,800 to €1,300.

These changes may apply only to long-term rentals, with short-term leases (like Airbnb-style rentals) continuing under the current scale.

Tax Breaks for Renters

Tenants may receive tax relief either through a deduction of 50% of their rent from taxable income or a 10% credit from their final tax bill. Eligibility would depend on income level, rent amount, and family status.

The government is also considering new support for addressing the housing crisis, including rent subsidies for young people and couples, and interest subsidies on housing loans for vulnerable borrowers.

Meanwhile, the Panhellenic Federation of Property Owners (POMIDA) recently presented its reform proposals during a meeting with the Greek Deputy Finance Minister including the harmonization of tax brackets for rental income and a three-year tax exemption for vacant properties to encourage landlords to bring more homes to the rental market.

The upcoming Thessaloniki International Fair is set to serve as the platform for announcing these and other economic relief measures. The government’s ultimate goal is to stimulate transparency in the rental market, open up more properties for long-term leases, and provide tangible support for both homeowners and tenants amid ongoing financial pressures.