Greece: New short-term rental regulations will come into effect in Greece from 1 October 2025, as announced by Greek tourism minister Olga Kefalogianni.
The bill, which was passed by a majority in Greece’s parliament, includes the “establishment of specifications for short-term rental properties” – a first-time measure to set standards for short-term rental properties in the country.
As of 1 October, all short-term rental properties in Greece will be required to have civil liability insurance for damages or accidents, certification from a licensed electrician, as well as fire extinguishers, smoke detectors, cut-off relay and escape signs, a pest control certificate, first aid kit and emergency contact guide, plus natural lighting, ventilation and air conditioning.
Kefalogianni said: “The basic functional specification for properties subject to short-term leasing is that they must be spaces of primary use, as defined in article two of the new building regulations. We believe a reasonable amount of time should be given to these new regulations, which is why we set the validity of article three to begin on October 1 2025.”
Despite the bill originally excluding properties not classified as “primary residential” [e.g. warehouses and former industrial buildings], it has now been updated to ensure that even repurposed properties can be rented out on the short-term rental market. As a result, it is expected to free up around 20,000 properties to be included on the market, especially in urban centres.
However, basements and semi-basement listings that do not fulfil the bill’s standards will be removed from listing sites.
In addition, the bill will establish a strict framework for inspections by Tourism Ministry employees and Greece’s Independent Public Revenue Authority [AADE] and property owners who fail to comply with the property regulations could face fines of up to €5,000. Repeat offenders could see their fines doubled, and each subsequent violation may result in a quadrupling of those fines.
While the bill received positive feedback from Greek tourism bodies such as the Hellenic Chamber of Hotels, the Greek Tourism Confederation [SETE], the Hellenic Hoteliers Federation, and the Greek Confederation of Tourist Accommodation Enterprises [SETKE], the Short Term Accommodation Managers Association of Greece [STAMA Greece] warned that it could halt investments in renovated properties. Meanwhile, members of the Greek Property Managers Association [PASIDA] have threatened to pursue legal action against the government, calling the new law “unconstitutional”.
The incoming reinforced property standards run parallel to a bill that will increase a daily tax on short-term rentals and hotels in Greece, as well as a levy charge on cruise ship visitors, as the country battles to address a housing crisis, reduce overtourism and counter the impact of natural disasters on its economy.
Later this year, the daily tax for short-term rentals will rise from €1.50 to €8 during the peak summer tourism season [April to October], while the tax will also increase from €0.50 to €2 over the winter period.
For hotels, the daily tax is set to soar by up to €15 during the peak summer months, although this will be dependent on the star rating of the properties.
Meanwhile, a €20 levy will be imposed on cruise ship visitors to popular island destinations Santorini and Mykonos, while a €5 levy will be put in place for other destinations across Greece accessible by cruise ships.
In September last year, Greek Prime Minister Kyriakos Mitsotakis announced measures aimed at addressing the impact of over-tourism in certain areas of the country. It came after Greece received a record 36.1 million visitors in 2023, while arrivals rose 16 per cent to 11.6 million in the first half of 2024.
The government’s new strategy includes a temporary freeze on new short-term rental permits in neighbourhoods where STRs exceed five per cent of the total housing stock. The move marks a shift away from previously proposed caps on rental days, such as the 90-day limit, which has been scrapped.
The government is also considering measures to incentivise long-term rentals including tax exemptions for property owners who transition from short-term to long-term leases. Homeowners who make their properties available for long-term rental for at least three years could receive a three-year exemption from income tax, provided their properties were either vacant throughout 2024 or previously listed for short-term rentals.
Finally, Greece will expand its Golden Visa programme to investors who are willing to put at least €250,000 into local startups. Foreigners were previously required to buy property to acquire the visa.
