The Greek government is introducing enhanced incentives for property owners to renovate and rent out their vacant homes. The Renovate-Rent program is being upgraded, offering higher subsidies for renovation costs and interest-free loans for energy upgrades. Additionally, a three-year tax exemption on rental income is being implemented for properties meeting specific criteria. These measures aim to address the ongoing housing shortage and combat rising rental prices. The renovation subsidy will increase from 40% to 60%, with a potential raise in the maximum expense limit from €10,000 to €15,000. It is important to note that the program will apply retroactively to existing applicants.
How to qualify for the tax exemption:
- The property should not exceed 120 square meters and must have remained vacant for at least three years.
- It should be owned by individuals and not businesses or corporations.
- Lastly, it must be leased anywhere between September 8, 2024 and December 31, 2025.
The exemption offers significant financial benefits to owners, with potential savings of thousands of euros over three years. While these incentives will result in some revenue loss for the government, officials believe the increased housing supply will outweigh the costs. The measures are a response to the current housing crisis, with data showing that only a small fraction of vacant properties were made available for rent in recent years.
