How much will the latest legal changes cost investors?
Starting October 1, 2025, Greece will implement new short-term rental (STR) requirements, which could significantly impact property owners and investors.
The regulations aim to improve housing quality and enhance tenant safety. Property owners listing their rentals on platforms like Airbnb and Booking will be required to ensure their properties comply with a range of standards.
The mandatory requirements include liability insurance to cover potential damages or accidents. Additionally, owners must obtain an electrical safety certificate from a licensed specialist. Residential units will also need to be equipped with fire safety measures, including fire extinguishers, smoke detectors, and automatic cut-off relays.
Sanitary standards will also be enforced, requiring regular pest control and a first aid kit on the premises. Stricter comfort requirements will apply as well—properties must have adequate natural lighting, proper ventilation, and air conditioning to be eligible for short-term rental.
The law further restricts the types of properties that can be rented out. From 2025, only residential units will be allowed for short-term rental, though the government permits former commercial properties to be converted into residential use. This change could add approximately 20,000 new units to the rental market. However, basements, semi-basements, and units with poor ventilation or insufficient lighting will be barred from the short-term rental market.
The introduction of new short-term rental standards has received a mixed reaction from market participants. Tourism organizations have supported the initiative, stating that it will improve the quality of rental properties and align the market with international standards.
At the same time, the Short-Term Rental Managers Association (STAMA Greece) has expressed concerns that the new regulations could reduce the sector’s investment appeal and limit opportunities for property owners. Representatives of the organization warn that increased compliance costs may lead to a decrease in the number of available rental properties, which, in turn, could impact investor profitability.
The Property Managers Association (PASIDA) has taken an even stronger stance. Representatives argue that the new rules violate property owners' constitutional rights and could result in legal action against the government. PASIDA claims that the state is artificially restricting the short-term rental market to create advantages for the hotel industry.
In addition to the new rental standards, the Greek government has revised its tax policy for the rental market. Property owners offering short-term rentals through platforms like Airbnb and Booking will now face higher tax burdens.
Between April and October, owners must pay a fixed fee of €8 per day per rental unit. During the winter months, the rate drops to €2 per day. The increased taxation will also affect the hotel sector, where fees will depend on star ratings, reaching up to €15 per room per night during the peak season.
Additional levies will be imposed on cruise tourism. Passengers visiting popular Greek islands will be subject to a new tax:
These costs will be absorbed by hotel owners and cruise operators, who are expected to pass them on to consumers through higher accommodation rates and ticket prices.
At the same time, the government has introduced tax incentives for landlords shifting to long-term leases. If a property is rented out for three years or more, the owner will receive a three-year exemption from income tax. This measure applies to properties that were either vacant or used for short-term rentals in 2024.
Additionally, the Golden Visa program has been expanded. Investors can now obtain residency in Greece not only by purchasing real estate but also by investing at least €250,000 in local startups.
Despite widespread discussion of the new regulations, many details remain unclear. Short-term rental market experts are awaiting further clarifications from the government, as the law’s wording leaves room for interpretation.
Renti reached out to the Short-Term Rental Managers Association (STAMA Greece) for official comments, but representatives could not provide concrete answers. Ilias Anagnostou, a short-term rental expert, described the situation as uncertain:
"Nothing is known yet. We are also waiting for explanations from the government."
The main issue is the lack of precise criteria. For example, it remains unclear what qualifies as insufficient lighting or poor ventilation. This uncertainty poses risks for property owners, who do not yet know what adjustments will be necessary to avoid fines or restrictions.
Renti’s experts advise investors to remain calm and avoid making hasty decisions. It is crucial to monitor official updates and consult legal experts before making any changes to rental strategies.
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