Renovations of vacant homes, tax incentives to make more homes available for long-term rentals, and restrictions on new short-term rentals in saturated residential areas, are just a few of the measures the Greek government is immediately implementing to increase the housing supply and ease pressure on rents.
The plan also includes a new housing program, “My Home III,” starting in January 2027, as well as more social housing, so that more households can own their own homes.
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At the same time, the rent reimbursement program—which will be paid to thousands of beneficiaries in late November—is being expanded, while the new year will bring new measures and special tax provisions incorporated into the Thessaloniki International Trade Fair (TIF) omnibus bill, which is set to be voted on by Parliament in November.
Immediate measures to “make homes available”
As the measures are rolled out one after another, tenants and landlords will need to evaluate each new measure to determine whether and to what extent it serves their interests.
Specifically, the measures now in effect offer:
1. Renovation of older homes with a subsidy ranging from 70% to 95%: under this program of the Ministry of Social Cohesion and Family —and with funding from the NSRF through the Ministry of National Economy and Finance—the government will subsidize a combination of renovation work and energy-efficiency improvements. On October 20, the Implementation Guide for the “Residential Renovation” initiative was published, covering renovation and energy efficiency improvement work. The subsidy amounts to up to 36,000 euros for the work, with the possibility of additional funding of up to 2,500 euros for support services.
The basic grant rates range from 70% to 80% of the cost, depending on income bracket, but with the anticipated increases, they can reach up to 85% and 95%, respectively.
Applications for funding have not yet opened. The platform will first be activated for vacant residences and then for those already used as primary residences, on dates to be announced.
A total of 94,000 eligibility certificates have already been issued to interested parties. Of these, 14,000 pertain to vacant homes and 80,000 to owner-occupied properties. The issuance of a Certificate of Eligibility does not automatically imply approval of funding. For vacant homes, occupants may either live in the property themselves or rent it out as a primary residence after renovation. In any case, this addresses households’ long-term housing needs, thereby alleviating housing pressure.
2. Tax incentives for vacant homes returning to long-term rental: The option for an income tax exemption on rental income for the first 36 months is extended through December 31, 2027. This measure by the Ministry of National Economy and Finance applies to eligible residences up to 120 square meters, with an additional 20 square meters for each dependent child of the tenant beyond the first two, and leases of at least three years.
As a general rule, the home must have been vacant or not used as a residence during the previous three tax years. It may also have been used exclusively for short-term rentals during the previous tax year, provided that it is now returned to long-term rental. There is also a special provision allowing for a limited lease of at least six consecutive months for public-sector doctors and nurses, public-school teachers, and uniformed personnel. The exemption does not automatically apply to every new lease and is subject to specific conditions for its continuation. The extension is included in the omnibus bill to be voted on at the Thessaloniki International Trade Fair (TIF).
3. Restrictions on new “Airbnb” listings in Athens and Thessaloniki: The “freeze” on new property registrations in these specific areas will continue through 2027. This applies to three municipal districts in Athens and the 1st municipal district of Thessaloniki, with the aim of limiting the further shift of residential properties from long-term to short-term rentals. The measure applies to new listings in these specific areas and does not constitute a general ban on existing accommodations.
New Measures in 2027
New measures will also begin in January:
4. New “My Home III” Program: The 2-billion-euro program is expected to provide low-interest home loans through the Hellenic Development Bank. The announced limits are an age cap of 55 for beneficiaries, €300,000 for the market value of the property, and €230,000 for the maximum loan amount, up to 90% of the property’s value. Expanded income limits are planned to include more families with children, as well as larger homes with more square meters for large families, so they can purchase their own home.
5. New social housing from public properties: The plan calls for 2,350 energy-efficient homes in four decommissioned military camps, with a budget of 435 million euros, and approximately 450 housing units through the renovation of public buildings. At the same time, social housing is being promoted, with plans to develop the first eight public properties. These homes are in the planning stages and have not yet been delivered.
6. New incentive for the construction of rental housing: Tax incentives are planned for “build-to-rent” projects, i.e., buildings intended for long-term rental. The terms, the amount of the incentive, and the start date have not yet been specified, but the goal is to add hundreds of new homes for long-term rental.
Measures Supporting Tenants and Landlords
Other measures—some being introduced for the first time and others being expanded—are also providing “breathing room” for tenants and landlords, such as:
7. Rent Rebate: On November 30, the subsidy for the 2025 tax year will be paid out for the months during which eligible recipients paid rent. A double refund (double the amount) is provided for doctors, nurses, and teachers serving in the regions, providing relief to households.
8. Tax reduction for property owners on rental income: For rent paid this year (tax year 2026), an intermediate tax rate of 25% is set for the portion of real estate income between 12,000 and 24,000 euros. This relief applies to landlords who have an incentive to make homes available for rent, or to pass on to tenants a portion of the tax relief they receive by lowering the rent they charge.
9. Exemption from the ENFIA property tax for more small settlements starting in 2027: The expansion applies to primary residences in settlements with up to 2,000 residents and up to 2,200 residents in Western Macedonia, with the exception of Attica, excluding the Regional Unit of the Islands. It applies to individuals with tax residency in Greece and a taxable value of full ownership up to 400,000 euros. However, it does not apply to all properties owned by each owner.
10. Tax extensions for renovations and new construction: The Ministry of Finance’s omnibus bill extends until the end of 2027 the tax reduction for eligible building renovation expenses, the VAT suspension on new construction, and the capital gains tax suspension on property transfers. While the VAT suspension is in effect, the builder submits an application, and a low 3% transfer tax is imposed on the relevant transfers instead of VAT.
11. Increase in the transfer tax for foreign buyers: Effective July 1, 2027, the rate will increase from 3% to 15% for residential property purchases by individuals who are not tax residents of EU or EEA countries. This places a barrier on large-scale real estate purchases by investors from the Middle East, China, etc. The determining factor, however, is the buyer’s tax residency, not their nationality.
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Source: APE-MPE
