Greece is introducing a series of housing measures to increase the supply of available homes and ease pressure on rents, including subsidies for renovating vacant properties, tax incentives for long-term rentals and restrictions on new short-term rental registrations in areas facing housing shortages.
The government also plans to launch a new €2 billion My Home III housing programme in January 2027 and expand social housing initiatives to help more households buy their own homes.
Meanwhile, the government is expanding rent refunds due to reach thousands of eligible recipients on November 30. Further measures and special tax arrangements will follow next year through a comprehensive bill, which the government plans to submit to Parliament in November.
Immediate measures to bring vacant homes back into use
As the government rolls out the measures, tenants and property owners will need to assess which incentives best suit their circumstances.
1. Renovation subsidies covering up to 95% of costs
A programme led by the Ministry of Social Cohesion and Family, with EU funding channelled through the Ministry of National Economy and Finance, will subsidise renovations and energy-efficiency improvements in older homes.
On October 20, the government published the implementation guide for its Home Renovation initiative. The programme offers up to €36,000 for renovation work, with an additional €2,500 available for supporting services.
Basic subsidy rates range from 70% to 80%, depending on the applicant’s income category. Eligible increases can raise the rates to 85% and 95%, respectively.
Applications have not yet opened. Authorities will initially activate the platform for vacant properties before extending it to homes already used as primary residences. They will announce the application dates separately.
Authorities have already issued 94,000 eligibility certificates, including 14,000 for vacant homes and 80,000 for owner-occupied properties. However, an eligibility certificate does not guarantee funding approval.
Owners can either occupy renovated vacant homes themselves or rent them out as primary residences. The scheme aims to address long-term housing needs while easing pressure on the market.
2. Tax incentives for vacant homes returning to long-term rentals
The government plans to extend until December 31, 2027, a tax exemption on rental income for the first 36 months of eligible long-term leases.
The Ministry of National Economy and Finance measure covers eligible homes of up to 120 square metres, with an additional 20 square metres allowed for each dependent child of the tenant beyond the first two. Leases must run for at least three years.
As a general rule, the property must have remained vacant or not served as a residence during the previous three tax years. Properties used exclusively for short-term rentals during the previous tax year can also qualify if their owners switch them to long-term rentals.
A special provision allows leases of at least six consecutive months to doctors and nurses employed by the public sector, public-school teachers and uniformed personnel.
The exemption does not automatically apply to every new lease and remains subject to specific eligibility and compliance requirements. The proposed extension forms part of the comprehensive tax bill awaiting parliamentary approval.
3. Restrictions on new Airbnb registrations in Athens and Thessaloniki
The government will continue freezing new short-term rental registrations in designated areas of Athens and Thessaloniki throughout 2027.
The restrictions cover three municipal districts in Athens and Thessaloniki’s First Municipal District. They aim to prevent more homes from shifting out of the long-term rental market and into short-term accommodation.
The measure targets new registrations in these areas rather than imposing a blanket ban on existing short-term rental properties.
New housing measures planned for 2027
4. New My Home III programme
The government plans to launch the €2 billion My Home III programme in January 2027, offering low-interest housing loans through the Hellenic Development Bank.
Announced eligibility limits include an upper age limit of 55 for applicants, a maximum property market value of €300,000 and loans of up to €230,000, covering as much as 90% of a property’s value.
The programme will broaden income eligibility thresholds to accommodate more families with children. It will also allow larger homes for families with several children, helping more households purchase their own properties.
5. New social housing using public properties
The government’s plans include 2,350 energy-efficient homes across four disused military camps, with a budget of €435 million. Authorities also aim to create approximately 450 homes by renovating public buildings.
In parallel, the government is advancing a social housing partnership model and plans to make the first eight public properties available for development.
These homes remain at the planning stage and have not yet been delivered.
6. Tax incentives for build-to-rent housing
The government is planning tax incentives for build-to-rent developments, which involve constructing buildings specifically for long-term rental accommodation.
Authorities have yet to specify the terms, the level of tax relief or the launch date. The initiative aims to add hundreds of homes to the long-term rental market.
Further measures to support tenants and property owners
7. Rent refunds on November 30
The government will pay rent refunds on November 30 for eligible tenants who paid rent during the 2025 tax year.
Doctors, nurses and teachers serving in regional areas will qualify for double the standard refund, providing additional financial relief to eligible households.
8. Lower rental income tax for property owners
A new intermediate tax rate of 25% will apply to the portion of rental income between €12,000 and €24,000 for the 2026 tax year.
The reduction aims to encourage owners to make more properties available for rent. Landlords may also pass some of their tax savings on to tenants by lowering the rents they charge.
9. Expanded ENFIA property tax exemptions from 2027
From 2027, the government will extend exemptions from Greece’s annual ENFIA property tax to more primary residences in small settlements.
The measure covers settlements with up to 2,000 residents, rising to 2,200 residents in Western Macedonia. It excludes Attica, except for the Islands Regional Unit.
Eligible applicants must be individuals with tax residence in Greece, and the full-ownership taxable value of their property must not exceed €400,000.
The exemption does not automatically cover every property an owner holds.
10. Extended tax relief for renovations and construction
The Finance Ministry’s proposed bill will extend several tax measures until the end of 2027.
These include tax relief for eligible building improvement expenses, the suspension of VAT on new buildings and the suspension of capital gains tax on property transfers.
While the VAT suspension remains in force, developers can apply for the relevant arrangements, and qualifying property transfers will attract a 3% transfer tax instead of VAT.
11. Higher property transfer tax for buyers from outside the EU and EEA
From July 1, 2027, Greece plans to increase the property transfer tax from 3% to 15% for residential purchases by individuals who are not tax residents of EU or European Economic Area countries.
The measure aims to curb large-scale property purchases by investors from regions including the Middle East and China.
The key criterion is the buyer’s tax residence, not their nationality.
(Source: AMNA)
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