Short-Term Rentals Are Banned: What Should Golden Visa Property Owners Do After September 1, 2024?

Following Portugal’s lead, Greece has joined the effort to curb the overconcentration of short-term rental properties that have been driving up prices. As of August 31, new conditions are in effect for obtaining and maintaining a "Golden Visa." Law 5100/2024 has tightened regulations, significantly altering the rules for investment properties.

It’s important to note that investors can still rent out their properties and generate income, but now with restrictions: short-term rentals through platforms like Airbnb are banned, as is subletting. Properties cannot be used for business purposes either, such as registering an office or company branch. Violating these rules can lead to severe consequences, from the cancellation of residency permits to fines of €50,000.

There are still ways to earn income from your property under the new rules. Here’s how.

How to Retain Income Without Losing Residency

Property owners who secured residency through the Golden Visa program are now asking a crucial question: how to continue earning a stable income without breaking the new rules or risking their residency? The answer: switch to long-term rentals. This format not only meets the new requirements but also provides steady income through long-term contracts with tenants.

Are There Affordable Options Now That the Investment Threshold Has Doubled?

An interesting and profitable approach: convert commercial properties into residential spaces. Consider former office spaces, for example.

This solution is particularly advantageous for those looking to earn rental income from their investment properties. It allows investors to find promising options in good locations, particularly in Piraeus and Athens, where many commercial spaces have been sitting vacant, while demand for long-term rentals among corporate employees is high.

Additionally, investors can make significant savings: properties starting at €250,000 are still eligible for the Golden Visa. Meanwhile, the minimum price for residential properties qualifying for a residency permit under the program is €800,000 in Attica, Thessaloniki, the islands of Mykonos and Santorini, and other islands with a population exceeding 3,100. In other regions, the minimum property price starts at €400,000. For newly built or under-construction properties, a minimum area of 120 square meters is required for eligibility.

Why Is This a Profitable Option?

Affordable Cost
Converted residential properties typically cost less than new apartments or renovated secondary properties, making them more accessible investments. There’s no need to buy a large 120 m² apartment at €800,000 (€6,666 per square meter), which is well above market rates. On average, these apartments range from 50-80 m², priced around €3,500 per square meter.

Higher Yield Potential
By converting the property to residential use and renting it out long-term, you can achieve a yield comparable to short-term rentals—with the right strategy in place.

Demand for long-term housing remains consistently high, particularly among foreign professionals, corporate employees, students, and expatriates. That’s why regions like Piraeus and Athens are prime focus areas for investors.

Converting a Property’s Designation: A Step-by-Step Guide

Changing a non-residential property to residential status requires navigating several bureaucratic steps, including permits for renovation and designation change. Once these steps are completed, owners can fully benefit from residential property status, including the option to rent it out long-term for steady income under the new Golden Visa rules.

To convert a property from commercial to residential, follow these steps:

1. Verify Legal Status
   Ensure that the property and its layout comply with local regulations for residential use.

2. Obtain Permits
   Apply to the local municipality for permission to change the property's designation to residential. This involves submitting an application along with the required documents.

3. Renovate as Needed
   Make any necessary modifications to adapt the property for residential use (e.g., conversions, installation of essential equipment, etc.).

4. Compliance Inspection
   Upon completion, you may need an inspection by building authorities or a relevant body to verify compliance with residential standards.

5. Update Registration
   Register the changes with the land registry and any other relevant records to reflect the property’s new residential status.

6. Obtain Documentation
   Collect all necessary documents confirming the change to residential status, which you will need for your Golden Visa application.

7. Submit Golden Visa Application
   Work with a company specializing in Golden Visa applications. Submit your application, including proof that the property is now classified for residential use.

How Can Renty Help You Through Every Step?

1. Select the Right Project
   Choose a project that fits your needs in our "Golden Visa" section. Pay attention to location, price per square meter, and the property’s long-term rental strategy, as long-term leasing is required.

2. Document Preparation
   Once you've purchased the property, Renty will assist with all necessary documentation to apply for the Golden Visa.

3. Sign a Management Contract
   Choose between a guaranteed rental income contract or a standard property management agreement, depending on your preferences.

4. Receive Rental Income
   Sit back and enjoy a steady income from your property.

What’s Next for Investors?
The new short-term rental ban for Golden Visa property owners may present a challenge, but with the right approach, stable and even increased income is within reach. Long-term rentals and converting commercial properties to residential use are becoming valuable strategies for investors looking to adapt to the new regulations.

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