Greece Approves New Short-Term Rental Regulations

Starting October 1, 2025, new regulations governing short-term rentals in Greece will come into effect, according to Greek City Times. The bill has been approved by Parliament and aims to standardize the industry. The grace period until fall allows property owners time to comply with the new requirements.

New Short-Term Rental Regulations

The law introduces several mandatory standards for short-term rental properties, including:
✅ Liability insurance
✅ Proof of electrical safety
✅ Operational fire extinguishers and smoke detectors
✅ Automatic circuit breakers and clearly marked emergency exits
✅ An emergency action guide for guests
✅ Certified pest control treatment
✅ First-aid kits stocked with essential medical supplies
✅ Proper ventilation and air conditioning
✅ Adequate natural light in rental units

A last-minute amendment expanded the types of properties eligible for short-term rental. This means repurposed buildings—such as former warehouses or industrial spaces—can continue to be rented out, protecting around 20,000 properties, particularly in urban centers. However, basements and semi-basements that fail to meet new safety and quality standards will be delisted from platforms like Airbnb and Expedia.

Stricter Inspections & Compliance Requirements

The law establishes a stricter inspection regime, conducted by the Ministry of Tourism in coordination with the Independent Authority for Public Revenue (AADE).

Property owners must fully cooperate with inspectors and provide all required certifications, including those related to electrical safety, liability insurance, and sanitation.
Failure to comply will result in fines starting at €5,000.
Repeat offenses within one year will lead to a €10,000 fine, doubling again to €20,000 for further violations.
Fines will also be imposed for denying inspectors access or failing to meet property safety and quality requirements.

Industry Reactions: Divided Opinions

The new measures have received mixed reactions from Greece’s tourism and property sectors: Major Greek tourism organizations support the changes, including The Hellenic Chamber of Hotels, The Greek Tourism Confederation (SETE), The Federation of Hoteliers, The Confederation of Tourist Accommodation Enterprises (SETKE)

However, real estate groups and rental associations strongly oppose the reforms:
- The Hellenic Property Federation (POMIDA) criticized the regulations, calling them too restrictive.
- The Short-Term Accommodation Managers Association (STAMA Greece) raised concerns about rising renovation costs.

The Greek Property Managers Association (PASIDA) threatened legal action, questioning the law’s constitutionality and warning of potential booking freezes during peak tourism seasons.

Earlier Rental Restrictions in Athens

In January 2025, Greece already implemented new short-term rental restrictions in several districts of Athens, including Kolonaki, Koukaki, Pangrati, and Exarchia.

By December 31, 2024, landlords were required to register new rental properties in the 1st, 2nd, and 3rd municipal districts, where new short-term rental listings are now banned.

Moving forward, similar restrictions will be expanded to other high-demand areas across Greece, prioritizing regions with high housing density and excessive demand for short-term rentals.

The Greek government hopes these measures will ease the country’s housing affordability crisis and counterbalance the surge in short-term rentals. Violating the existing restrictions can already result in fines of €20,000 or more.

Aligning Rental Properties with Hotel Standards

The new regulations aim to create a level playing field between short-term rental owners and hotels.

The government has introduced a mandatory checklist of equipment and safety features, aligning short-term rentals with hotel industry standards.
Lawmakers are also considering professional licensing requirements for individuals managing more than two rental properties.
To incentivize long-term rentals, the government is offering tax breaks:

Landlords who shift from short-term to long-term leasing will qualify for three-year tax incentives.
Prime Minister Kyriakos Mitsotakis has also suggested a potential tax increase for landlords who continue operating in the short-term rental market.
Economic Impact & Foreign Investment Concerns
This legislative shift comes as Greece experiences a surge in tax revenues from short-term rentals.

According to AADE, since 2017, tax revenues from short-term rentals have increased more than tenfold.
In 2024 alone, the sector generated an estimated €830 million in tax revenue.
While the long-term effects of these reforms remain uncertain, past experiences in other countries suggest that stricter regulations often drive rental prices even higher.

Additionally, excessive regulation can reduce Greece’s attractiveness for real estate investors:
- In 2022, foreign real estate investment in Greece reached €6.43 billion.
- In 2023, it dropped to €3.66 billion.
- In the first nine months of 2024, it fell further to €3.1 billion.

As Greece continues to tighten its rental regulations, the balance between housing affordability, tourism revenue, and investor confidence remains a critical challenge for policymakers.