Greece has announced a new law on short-term rentals, which will come into effect on October 1, 2025. Many are wondering what the new law entails.

Will this law affect accommodation prices and tourist offerings?

It is important to emphasize that the law does not affect tourist registered properties (hotels, villas, and apartments with a tourism license), but exclusively private properties rented out for short-term leases through platforms such as Airbnb.

Registered tourist properties will continue to operate as usual, so no changes in prices are expected in resorts.

These changes are primarily aimed at protecting local communities, and tourists using registered properties should not feel any changes.

What does the new law on short-term rentals bring?

Limitation of the number of properties for short-term rental:

- Owners can rent out a maximum of 2 properties for short-term lease.

Limitation of the duration of leases:

- Maximum of 90 days per year per property.
- On islands with fewer than 10\,000 inhabitants\, this limitation is 60 days per year.

Minimum quality standards:

- Spaces rented out must have adequate natural light\, ventilation\, and meet basic hygiene standards.
- Renting out basements\, windowless basements\, converted warehouses\, and rooms that do not meet minimum living standards is prohibited.

Ecological tax

The ecological tax has been increased to 8 euros per day for properties intended for short-term rental, while it can be higher for larger properties.

Here you can see how much the ecological (previously residence) taxes are for other types of accommodation that are not registered for short-term rentals, i.e., how much the tax is for registered tourist properties: Ecological (previously residence) tax in Greece

Increase in taxes for short-term rentals

Tax rates are more strictly regulated and depend on annual income:
- 15% for income up to 12\,000 euros.
- 35% for income from 12\,001 to 35\,000 euros.
- 45% for income over 35\,000 euros.

Tax incentives for long-term leases:

Owners opting for long-term leases can benefit from tax incentives.

The issue of a lack of housing for the local population is particularly acute in Athens, where there has been a significant increase in short-term rentals of properties through platforms such as Airbnb. As a result, local authorities have imposed a moratorium on the registration of new short-term rentals in certain parts of the city to reduce pressure on the housing stock and facilitate easier access to housing for the local population.

How is a property registered for short-term rental?

Owners must obtain an AMA number (Αριθμός Μητρώου Ακινήτου – Property Registration Number) in order to legally rent out their properties.
Registration includes:
- Registration in the electronic system of the Greek Tax Administration.
- Providing evidence of ownership and technical characteristics of the property\, including evidence that it meets minimum quality standards.
- Obtaining an AMA number\, which must be stated in all property listings.

Foreign nationals can also obtain an AMA number, provided they own property in Greece and fulfill all legal obligations.

Increase in the Minimum Amount for Golden Visas

Another measure introduced by Greece to regulate the real estate market is an increase in the minimum amount required to obtain a “golden visa.” This program allows foreign citizens to obtain a residence permit through investments in real estate.

From 2025, the minimum investment amount to obtain a “golden visa” in Greece depends on the location of the property:

  • 800,000 euros: in regions such as Attica (including Athens), Thessaloniki prefectures, Mykonos, Santorini, and islands with a population of more than 3,100 inhabitants.
  • 400,000 euros: in other parts of the country.

However, there are exceptions where the minimum investment amount is kept at 250,000 euros:
- For investments in protected buildings subject to their restoration.
- For buildings that previously had an industrial purpose and are being converted into residential units.

This measure aims to reduce pressure on the real estate market flooded with investments aimed at short-term rentals, which increases prices and makes it difficult for the local population to find housing.
See more details here: Greek Golden Visa

Why are these measures being introduced?

The main reason for introducing new legal measures is the lack of housing for the local population and students. In popular cities and resorts, it is increasingly difficult to find affordable and accessible long-term accommodation, as property owners more often choose short-term rentals for higher profits.

This trend particularly affects families with lower incomes and students in university cities, who are forced to seek alternative options due to the drastic increase in rent prices and the lack of long-term offers in the market. Traditional residential spaces are being converted into tourist accommodations, further reducing availability for those in need of housing.

In addition to this key issue, the law aims to address other challenges related to illegal rentals and the influx of tourists:

Pressure on infrastructure:

- Increasing water and electricity consumption during the summer season causes shortages.
- The sewage system often cannot handle the load in overcrowded resorts.

Overcrowding and congestion:

- Lack of parking spaces and traffic jams further complicate the lives of the local population.
- Overcrowding in popular destinations reduces the quality of stay for both tourists and locals.

Rising housing prices and rents:

- Focus on short-term rentals reduces the number of long-term options\, leading to excessively high prices for locals.

Erosion of the local community:

- Traditional neighborhoods lose their identity and become exclusively tourist zones\, changing the demographic picture and quality of life for the local population.

These measures aim to restore balance between tourism and the needs of local communities, creating conditions for affordable housing, reducing illegal rentals, and preserving infrastructure from overload.

Initiatives to combat illegal rentals in Halkidiki

Associations of villa and apartment owners in resorts have launched initiatives to put an end to illegal rentals. Many owners, including foreigners, rent out properties without proper registration and tax payments. A larger number of tourists further burdens infrastructure, disrupts fair competition, and reduces state revenues.

These initiatives include:
- Mandatory registration of all properties rented out.
- Stricter inspections and higher penalties for illegal renting.
- Raising awareness of the importance of legal business practices and tax payment.

Arrests in Halkidiki due to corruption

One of the most controversial cases related to the construction industry occurred in Halkidiki a few months ago. The former mayor of Sithonia and several local officials were arrested for issuing construction permits “out of turn” in exchange for bribes.

The demand for real estate in resorts is huge, and many buyers use apartments for personal use or short-term rentals. This situation has led to a race for building permits. Officials were facilitating accelerated procedures or even allowing construction in locations where it was not intended in exchange for money. During the investigation, evidence of corruption was found, including fake documentation and illegal transactions.

This case illustrates how much pressure the real estate market is under and how important construction control is in tourist areas.

The new law on short-term rentals aims to bring order to the real estate market and protect local communities, not to disrupt the tourist offer. Registered tourist properties are not covered by this law, so no changes in accommodation prices in resorts are expected.

These measures bring greater responsibility for property owners but also long-term benefits for local communities and infrastructure. Greece seeks to achieve a balance between tourism and the protection of its residents and resources – will it succeed?

Examples from other Mediterranean countries

Other Mediterranean countries, such as Spain and Italy, face similar challenges to Greece when it comes to a lack of housing due to the rise in short-term rentals to tourists.

Spain

In Spain, especially in cities like Barcelona and Madrid, the local population faces rising housing prices and a lack of affordable accommodation. Many residents are forced to leave their homes due to high rental prices, and some even live in cars or makeshift shelters.

This phenomenon has led to protests against mass tourism and short-term rental practices. Authorities have responded by introducing stricter regulations, including moratoriums on issuing new licenses for short-term rentals in certain parts of cities and increasing taxes on such activities. Taxes of 100% **have been introduced on empty properties to encourage owners to put them on the market and reduce the housing crisis.

Italy

In Italy, cities like Venice and Florence are facing similar challenges. Mass tourism has led to depopulation of historic centers, as the local population cannot afford the rising cost of living. Authorities have introduced restrictions on short-term rentals, including limiting the number of days properties can be rented out to tourists and increasing taxes for owners engaged in this activity.

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