As of January 1, 2025, the Greek government is introducing significant changes to the legislation governing short-term rentals, such as those through Airbnb-like platforms. The new regulations aim to regulate the market, protect the local community and address the housing crisis.
Main Changes:
1.Suspension of New Registrations in Specific Areas: As of January 1, 2025 and for one year, no new properties will be allowed to be registered in the Short-Term Rental Property Registry in specific areas of Athens, such as Koukaki, Exarchia, Pagrati and Petralona.
2.Stricter Operating Standards: Short-term rental accommodations will have to meet strict minimum requirements, such as specific floor areas (at least 12 sq m for rooms and 25 sq m for apartments), provision of natural lighting, ventilation, heating or air conditioning, as well as mandatory fire safety and safety certifications.
3.Incentives for Long-Term Rentals: Owners who convert their properties from short-term to long-term rentals will benefit from tax breaks, such as a three-year exemption from rental tax, provided that the lease is signed before the end of 2024 and the lease lasts at least three years.
4.Severe Penalties for Violations: Failure to register in the Short-Term Rental Property Registry and illegal rental without a Property Registration Number (PAR) will result in administrative fines, with a minimum amount of 20,000 euros.
Estimated Impacts:
- Property Owners: The new restrictions may reduce income from short-term rentals, especially in areas with high demand. However, incentives for long-term rentals offer an alternative with a stable income and tax benefits. Owners should evaluate their options, taking into account the new requirements and potential benefits.
- Property Market: The suspension of new listings in popular areas may lead to a decrease in demand for investment properties for short-term rental purposes, affecting prices and availability. At the same time, the shift towards long-term leases can increase the supply of housing, helping to stabilize rents and address the housing crisis.
Recommendations for Landlords:
- Information and Compliance: It is critical for landlords to be fully informed about the new regulations and ensure that their properties meet the required standards, thus avoiding fines and legal repercussions.
- Review Leasing Strategy: Considering the incentives for long-term leases, landlords should evaluate whether the transition to this form of lease is more advantageous, both financially and operationally.
- Property Improvement: Compliance with the new standards may require investments in upgrades and improvements. However, these investments can increase the value of the property and make it more attractive to future tenants or buyers.
In summary, the changes to the short-term rental legislation in Greece from 2025 are expected to bring significant adjustments for landlords and the real estate market in general. Timely adaptation and a strategic approach will be crucial for successfully addressing the new challenges and capitalizing on the opportunities that arise.
Petros Kitsikoudis
Real Estate Consultant
Sources: proini.news, ellika.gr, tovima.gr
