Greece Tightens Rental Rules in 2025: New Tenant Scoring System and Short-Term Lease Restrictions

​In 2025, Greece is set to implement significant changes in its housing rental market, introducing a tenant evaluation system and tightening regulations on short-term rentals. These measures aim to enhance transparency, ensure safety, and address housing availability concerns.​

Tenant Evaluation System

By the end of 2025, Greece plans to establish an Independent Credit Rating Authority to assess the financial reliability of individuals and businesses. This system will aggregate data on outstanding debts, repayment histories, and legal disputes from various public and private financial databases. The resulting credit scores will assist property owners and service providers in evaluating potential tenants without accessing sensitive tax information. Supporters believe this initiative will streamline rental agreements and business transactions, while critics express concerns about data privacy and potential discrimination against individuals with poor credit histories. ​

Stricter Regulations on Short-Term Rentals

Starting January 1, 2025, Greece will enforce a one-year ban on issuing new licenses for short-term rentals in central Athens districts, including Kolonaki, Koukaki, and Exarchia. This measure aims to alleviate housing shortages and rising living costs in these areas. Violations of this ban may result in fines of at least €20,000.

Additionally, as of October 1, 2025, new legislation will standardize the short-term rental market nationwide. Property owners must ensure their rentals meet specific safety and operational standards, such as obtaining liability insurance, installing fire extinguishers, smoke detectors, emergency signage, and first aid kits. Properties like windowless basements that fail to meet these standards will be removed from platforms like Airbnb. Stricter inspections and increased penalties for non-compliance will also be implemented. ​

Market Reactions

These regulatory changes have elicited mixed reactions. Tourism organizations, including the Greek Tourism Confederation (SETE) and the Federation of Hoteliers, support the measures, citing improved safety and quality standards. Conversely, the Hellenic Property Federation (POMIDA) and the Association of Short-Term Rental Managers (STAMA Greece) have voiced concerns over increased operational costs and potential impacts on profitability. The Greek Property Managers Association (PASIDA) has even threatened legal action, questioning the constitutionality of the new laws.

Conclusion

Greece's housing market is undergoing significant reforms aimed at increasing transparency and balancing the interests of property owners, tenants, and local communities. While these measures intend to improve housing availability and safety standards, their long-term impact on investment and market stability remains to be seen.