Athens, January 5, 2026 – The Greek government has announced an extension of its ban on registering new properties for short-term rentals, including platforms like Airbnb, in the central municipal districts of Athens. This prohibition will remain in effect until December 31, 2026, specifically targeting the first, second, and third municipal districts. The measure, formalized through a Joint Ministerial Decision (JMD), seeks to address the persistent housing shortages and the escalating long-term rental prices that have plagued these highly sought-after areas.
New Regulations and Enforcement
Under the updated regulations, which commenced on January 1, 2025, and are now extended through the end of 2026, no new properties will be permitted for addition to the Short-Term Stay Registry within the designated central districts. However, existing short-term rental properties that were already registered prior to this decision are allowed to continue their operations.
To ensure compliance and deter violations, the government has instituted a stringent penalty system:
- First offense: A fine equivalent to 50% of the rental income generated from January 1, 2025, up to the date of inspection, with a minimum penalty of €20,000.
- Second offense (within the same tax year): The fine doubles, amounting to 100% of the income earned since the previous inspection, with a minimum penalty of €40,000.
These fines are designated as public revenue and will be collected by the Independent Authority for Public Revenue (AADE). Property owners, managers, or any third parties found to be renting properties in contravention of these rules will face these significant sanctions.
Addressing the Housing Crisis and Tourism Impact
This extended ban directly confronts the growing concern that the proliferation of short-term rentals contributes significantly to a reduction in available housing for permanent residents in Athens’ historic and central neighborhoods. The booming tourism demand in these areas has been identified as a primary driver of increased housing costs, making it increasingly difficult for locals to find affordable long-term accommodation.
The decision to prolong these restrictions is a continuation of similar measures initially introduced in 2025. It underscores a broader governmental effort to strike a balance between fostering the growth of the tourism sector, which is vital to the Greek economy, and ensuring the availability of affordable housing for its citizens. [ekathimerini.com](https://www.ekathimerini.com/economy/real-estate/1272419/athens-short-term-ban-stays-for-another-year/) and [greekcitytimes.com](https://greekcitytimes.com/2025/06/16/athens-extends-ban-on-new-short-term-rentals-in-city-center-until-2026/) reported in June 2025 that the ban was initially implemented in January 2025 and would be extended until at least the end of 2026.
Broader Context and Future Outlook
The issue of short-term rentals impacting local housing markets is not unique to Athens. Many European cities are grappling with similar challenges, leading to various regulatory responses. In 2024, Greece experienced a notable increase in demand for short-term rentals, with overnight stays reaching 14.1 million, a substantial rise from 9.9 million in 2019. Despite this growth, short-term rentals constituted only 9.2% of the total tourist nights in Greece in 2024, as per Eurostat data. [shorttermrentalz.com](https://shorttermrentalz.com/news/legislation-news/athens-extends-str-ban/) also highlighted that a May 2025 survey by Pulse RC revealed that while 90% of Greeks consider tourism vital, many also believe that the rapid expansion of short-term rentals is exacerbating the housing crisis by reducing available real estate and driving up rents. For the first time, the supply of short-term rental beds surpassed hotel beds in 2024.
The Finance Ministry is actively monitoring data on short-term rentals across all major Greek cities to determine if further interventions are necessary. This ongoing assessment reflects the government’s commitment to adapting its policies to maintain a sustainable housing market while supporting its critical tourism industry.
Source: Joint Ministerial Decision, Independent Authority for Public Revenue (AADE), Greek City Times, eKathimerini, ShortTermRentalz
