Athens, Greece – In a significant move to alleviate ongoing housing concerns, the Greek government has officially extended the ban on new short-term rental registrations in the central districts of Athens until December 2026. This decision, formalized through a Joint Ministerial Decision (JMD), prohibits the first-time registration of properties for short-term rental in the first, second, and third municipal districts of the Municipality of Athens.
Stricter Regulations and Hefty Fines Introduced
The extended ban, which originally came into effect on January 1, 2025, aims to curb the rapid growth of short-term rentals and ensure the availability of affordable long-term housing for residents. Property owners, possessors, usufructuaries, sub-lessors, or third-party managers who violate this regulation will face severe penalties.
According to the JMD, a strict sanctions framework has been implemented for offenders. For the first confirmed violation, a financial penalty equivalent to 50% of the income earned from short-term rentals from January 1, 2025, until the time of inspection will be imposed, with a minimum fine of €20,000. Subsequent violations within the same tax year will incur even harsher penalties, with a fine equal to the total rental income collected from the previous inspection until the new one, and a minimum of €40,000. These fines will be collected by the Independent Authority for Public Revenue.
Addressing Housing Shortages and Tourism Impact
The decision to extend the ban comes as Athens, like many other popular European cities, grapples with the impact of a booming short-term rental market on its housing landscape. While tourism is a vital component of the Greek economy, the proliferation of short-term rentals has been linked to rising long-term rental prices and a reduced supply of available housing for permanent residents. [ekathimerini.com]
Data from 2024 revealed a significant 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, short-term rentals constituted only 9.2% of the total tourist nights in Greece in 2024, indicating their disproportionate impact on housing availability in specific urban areas. [shorttermrentalz.com]
A survey conducted in May 2025 by Pulse RC highlighted that while 90% of Greeks recognize the importance of tourism to the national economy, many also believe that the rapid expansion of short-term rentals exacerbates the housing crisis by reducing available properties and driving up rents. [greekcitytimes.com]
A Trend Among European Cities
Athens joins a growing number of European cities implementing measures to balance the economic benefits of tourism with the need to ensure sustainable housing access for local communities. This proactive approach aims to protect the character of central districts and ensure that the right to housing for residents is not compromised by the profit motives of short-term rental operators. Property managers in restricted zones may need to adapt by focusing on unrestricted regions or exploring mid-term rental models. [rentalscaleup.com]
The Greek Prime Minister, Kyriakos Mitsotakis, previously stated that while his government does not intend to demonize the short-term rental business, measures are necessary to ease rent pressures and increase housing availability. He emphasized the importance of preventing the alteration of district character and ensuring that the right to profit does not override the right to housing. [euronews.com]
This extended ban underscores the Greek government’s commitment to addressing the housing crisis in its capital and ensuring a more equitable living environment for its citizens.
Source: tornosnews.gr
