The government vice president Kostis Hatzidakis revealed a 5-step plan to boost the Greek property market during a presentation at the 3rd Real Estate Conference in Athens on Tuesday.
The five measures, either already underway or expected to take effect in the future, include a 35% cut in the uniform real estate property tax (ENFIA); an additional 20% reduction in insured properties; a suspension in VAT and capital gains tax on property; and a three-year income tax exemption for vacant properties that are either rented out or converted from short-term to long-term leases.
The government is also upgrading two running property programs aimed at helping homeowners by raising the financing offered.
A landmark move is the social compensation scheme, which allows unused public properties to be developed into modern housing.
- At least 30% of new units will be offered as affordable rentals to eligible citizens based on social criteria.
- The model includes a “rent-to-own” option.
- Planned legislative improvements aim to make the framework more attractive and effective.
The new provisions include the ability to sell the portion of units not used for social housing to recover investments more quickly and the redevelopment of existing buildings, not just construction on vacant lots.
The government is also revamping urban planning regulations through the development of local and special urban plans. Recent rulings by the Council of State (StE) highlighted the urgent need for updated urban planning rules.
“I fully respect the need for modern zoning laws,” Hatzidakis said. “But I also recognize the need for affordable housing, rural revitalization, and demographic support—all while respecting constitutional protections for property and regional development.”
A new building code is already in progress, and the Ministry of Environment is preparing legislation to regulate construction in settlements.
