Μake us preferred on Google The Greek government is extending a series of tax incentives aimed at increasing the supply of homes and slowing increases in property prices and rents.
The package announced as part of the Thessaloniki International Fair includes a third round of the “My Home” housing program, scheduled to open in January 2027 with expanded eligibility criteria, as well as additional measures targeting housing supply.
Among the measures are an extension of a three-year income tax exemption for owners who bring vacant homes back onto the market for long-term rental, continued incentives for renovations a7nd the continued suspension of the 24% VAT on new residential construction.
At the same time, restrictions on new short-term rentals, such as Airbnb properties, will remain in parts of Athens and Thessaloniki throughout 2027. The government will also sharply increase the property transfer tax on home purchases by citizens of countries outside the European Union.
Tax breaks for vacant homes and renovations
The three-year income tax exemption will be extended for taxpayers who reopen previously vacant residences and make them available for long-term rental.
The government is also extending a tax deduction of up to €16,000 over five years for building improvement and renovation expenses.
The two measures are intended to encourage owners to make existing housing stock available while also supporting investment in the improvement of properties.
The exemption from the 24% VAT on new construction will also remain in place, providing an additional incentive for new housing development.
Restrictions on short-term rentals
The restrictions on new short-term rental properties will remain in effect throughout 2027.
The measure applies to the three municipal districts of Athens and the First Municipal District of Thessaloniki, limiting the addition of new short-term rental properties in these areas.
More homeowners to benefit from ENFIA exemption
From 2027, the number of areas eligible for exemption from ENFIA, Greece’s annual property ownership tax, will also increase.
The population threshold for eligibility will rise from 1,500 to 2,000 residents, while the threshold will be increased to 2,200 residents in Western Macedonia.
The change will extend the exemption to another 131 settlements and approximately 62,000 additional property owners.
Overall, the ENFIA exemption will cover 12,855 settlements, significantly expanding the number of property owners who will be fully exempt from the tax.
Home purchases by non-EU citizens to become more expensive
The government is taking a different approach to home purchases by citizens of countries outside the European Union.
Starting January 1, 2027, the property transfer tax on these transactions will rise from 3% to 15%.
The increase applies exclusively to residential properties. It does not cover commercial properties, plots of land or other categories of real estate.
