A series of provisions enacted in 2025 to ameliorate the “housing crisis” in certain urban areas in Greece, especially in the greater Athens-Piraeus agglomeration, came online with the advent of the new year.

Among others, tax breaks are envisioned for property owners leasing up-until-now closed apartments and residences.

Other provisions include a reduction in the property tax rate for specific categories of owners, as well as a freeze on the imposition of VAT on new building constructions, along with the highly unpopular “value added” tax tacked on to property sales. Renovations and energy upgrading works are also covered in the tax break regime.

The tax rate for lease earnings remains at 15% for owners with annual incomes below 12,000; 24% for incomes between 12,001 euros to 24,000 euros; 35% for incomes of between 24,001 euros to 35,000 euros and a hefty 45% for incomes above 35,001 euros.

Owners who lease properties previously closed or converted from short-term leases to long-term leases by December 31, 2026, will be fully exempt from taxes on the income they earn, and for three years.

More than one million taxpayers whose main residence is in small villages will receive a 50% discount on this year’s property tax bills.

The measure applies to property rights related to primary residences owned by natural persons who are tax residents of Greece and whose main residence, as shown in their income tax return, is located in communities with a population of less than 1,500 inhabitants. Settlements located in Attica prefectures are not eligible.