Greece prepares tougher Airbnb rules as housing crisis intensifies

Greece is preparing to tighten its rules on short-term rentals as more property owners in major cities turn homes into Airbnb units for additional income. The shift has reduced the number of homes available at affordable prices for long-term rental, according to the report.

Existing restrictions already block new registrations in Thessaloniki’s First Municipal Community from July 1 through Dec. 31, 2026. Owners who violate the order face an administrative fine equal to 50% of their income. Properties removed from the short-term rental register in restricted areas of Athens and Thessaloniki cannot re-enter it at least until the end of 2026. A repeat violation in the same tax year carries a minimum fine of 40,000 euros.

Authorities are considering additional measures ahead of the Thessaloniki International Fair. Options include a separate tax regime, licensing requirements and fees in areas with high demand. Officials are also examining a one-year extension of the ban in central Thessaloniki and Athens’s first three municipal districts, along with a possible expansion to islands facing severe housing pressure.

The government offers tax incentives to owners who move properties from short-term to long-term rental under certain conditions. The framework provides a 36-month income-tax exemption for some new long-term leases.

The issue extends beyond Greece. The European Commission is preparing an Affordable Housing Act, which would set criteria for cities and regions to impose proportionate measures against housing pressures. The initiative follows criticism that the commission has acted too slowly on the housing crisis.