Government Unveils Comprehensive Housing Bill to Tackle Rental Crisis
Athens, June 2 – The Greek government has announced a new package of interventions in the housing market, aiming to increase the availability of long-term rental properties and alleviate the pressure on rental prices. The bill, currently in public consultation, focuses on short-term rental platforms like Airbnb, extending existing restrictions and introducing new measures to address the country’s housing challenges.
Airbnb Restrictions Extended to Thessaloniki, Maintained in Athens
A key component of the new legislation is the expansion of restrictions on short-term rentals. The bill extends the suspension of new registrations in the Short-Term Accommodation Registry for the 1st, 2nd, and 3rd Municipal Districts of the Municipality of Athens until the end of 2026, with a possibility of further extension. This effectively blocks new Airbnb listings in areas such as the historic center, Plaka, Monastiraki, Koukaki, and Metaxourgeio, where a significant portion of residential stock has been converted into tourist accommodation.
For the first time, similar restrictions will be imposed in Thessaloniki. From July 1, 2026, to December 31, 2026, new properties in the 1st Municipal Community of the Municipality of Thessaloniki will not be permitted to register in the Short-Term Accommodation Registry. This measure targets the city’s historic and commercial center, where the proliferation of Airbnbs has significantly reduced housing options for students, workers, and permanent residents.
Stricter Penalties for Non-Compliance
The new restrictions are accompanied by severe penalties. Property owners or managers who violate these regulations will face a fine equivalent to 50% of the income derived from such activity, with a minimum of 20,000 euros. In case of repeated offenses within the same tax year, the fine will escalate to the total amount of rents collected from the previous to the new inspection, with a minimum of 40,000 euros. The Independent Authority for Public Revenue (AADE) will be responsible for inspections and enforcement.
Changes in Property Transfers and Rental Subsidies
The bill also addresses potential circumvention of the rules. Properties located in areas with new registration suspensions, if transferred through sale, donation, parental grant, or inheritance, will be delisted from the Short-Term Accommodation Registry. The new owner will not be able to re-register them as long as the restriction remains in effect.
In parallel with the restrictions, the bill expands the income thresholds for rental subsidies. The limit for single individuals increases to 25,000 euros, for married couples or civil partnership members to 35,000 euros, and the additional allowance for each child increases to 5,000 euros. For single-parent families, the limit reaches 39,000 euros, significantly broadening the number of eligible households.
Support for Educators and Healthcare Workers in Rural Areas
To address housing difficulties in the periphery, a new financial aid program is being introduced for educators, doctors, nurses, and other healthcare personnel serving outside Attica and Thessaloniki. This aid will be equivalent to two monthly rents annually, based on the rents declared to AADE. Thousands of employees in schools, hospitals, health centers, and NHS structures, who often serve in areas with limited housing stock and high rents, will benefit from this measure.
“Build-to-Rent” Program to Boost Housing Supply
The government is also launching the new “Build-to-Rent” program to increase housing supply. This program offers incentives to real estate development and management companies for constructing new homes or converting existing non-residential properties into residential ones. These properties must be exclusively available for long-term rental for at least ten years. Additional incentives include tax exemptions for income generated from these rentals, under conditions to be defined by a joint ministerial decision.
A Shift Towards Sustainable Housing Policies
The core message of the new bill is that addressing the housing crisis will not solely rely on subsidies but also on interventions aimed at increasing housing stock. The government is taking a more dynamic approach to the short-term rental market, believing that its uncontrolled growth has contributed to the reduction of available housing and the rise in rents. Thus, restrictions on new Airbnbs form the central axis of the package, complemented by financial aid and investment incentives designed to increase the supply of affordable housing in the coming years.
Source: iefimerida.gr
