Greece Weighs New Limits on Short-Term Rentals

Greece is contemplating new limitations on the Airbnb market. Prime Minister Kyriakos Mitsotakis announced earlier this week that the country would restrict the number of nights homes and apartments rented out short-term.

The government aims to counter the disruptions caused by the unregulated boom of short-term rentals in the property market to ease the housing crisis in Athens and other major cities.

The government is considering measures such as capping rental days to avoid a housing crisis similar to those in other prominent European cities. This initiative could increase the availability of homes for long-term lease and help reduce rental prices.

Prime Minister Kyriakos Mitsotakis stressed that the measures are aimed at those who have turned Airbnb into a commercial venture, not at property owners who use it to supplement their income.

“We have already imposed restrictions and requirements for those using Airbnb commercially. Additionally, we will discuss the appropriate duration for short-term rental of properties,” Mitsotakis mentioned during an interview with Action24 channel on Wednesday.

The government has already implemented interventions in Airbnb and the Golden Visa program and is considering additional measures based on feedback from market participants and opposition. “We are examining the Airbnb market to determine how much we can limit short-term rentals in Athens and free up properties for long-term rentals,” Mitsotakis stated.

The government is considering a 90-day cap per calendar year on short-term rentals, especially in large cities like Athens. For smaller islands with populations under 10,000, the limit could be reduced to 60 days per year, with different zones having varied rental ceilings.

On Sunday, the government announced plans to consider tax incentives favouring long-term rentals and stricter penalties for non-compliance. These changes are expected to be implemented in the fall.

Data collected during this summer’s tourist season will assess the impact of the regulations that began on January 1, which classified multiple property rentals as a business activity, requiring appropriate taxes and VAT, daily Kathimerini reports.