The Greek government is implementing new policies to regulate short-term rentals like Airbnb, as announced at the 88th Thessaloniki International Fair. These measures aim to curb the rapid growth of such rentals while encouraging property owners to shift towards long-term leasing. Prime Minister Kyriakos Mitsotakis revealed a plan that entails both restrictions and incentives for homeowners, to bring currently unused properties back into the housing market. The government strategy unveiled significant tax motives for property owners, offering a three-year tax exemption on rental income. This move aligns with a proposal from the National Property Owners’ Association, aiming to address the housing shortage by unlocking an estimated 700,000 vacant properties across the country. Restrictions include a one-year ban on new short-term rental licenses in three central Athens districts, with the possibility of extending this to other areas if deemed necessary. More specifically, the districts affected by the ban are as follows:

• The 1st municipal district of Athens, including core downtown areas, such as Konkani, Kolonaki, Syntagma, Monastiraki, Exarcheia, Ilisia, Neapoli, Omonoia and Plaka.
• The 2nd municipal district of Athens, including Mets, Neos Cosmos, Agios Artemios, and Pangrati.
• The 3rd municipal district of Athens, including the southwestern neighborhoods of Votanikos, Metaxourgeio, Gazi, Petralona and Rouf.

To balance these restrictions, the government is offering tax benefits to property owners who switch to long-term rentals or make previously unused properties available for extended leases. Additionally, there will be an increase in the climate crisis resilience fee for short-term rentals and hotels, with the proceeds being used to support local infrastructure in tourist-heavy areas. These changes reflect the government’s attempt to address housing issues and manage the impact of tourism on local communities, while still maintaining a viable short-term rental market.