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In a bold step to address its worsening housing crisis, Greece has introduced sweeping legislation to clamp down on short-term rentals listed on platforms like Airbnb. The new rules, presented by the Ministry of Tourism on January 8, aim to curb the booming short-term rental market, which has been blamed for skyrocketing rents and a shortage of long-term housing options.
Under the new law, thousands of properties currently listed for short-term rental are now ineligible. Renovated warehouses, storage rooms, industrial spaces, and old basements can no longer be used as tourist accommodations. Additionally, any property not officially classified as a primary residence by Greek law—or failing to meet this classification as of July 2011—is banned from being listed on short-term rental platforms.
Stricter Standards for Rentals
The legislation also tightens regulations for properties that qualify for short-term rental status. New requirements include improved lighting, proper ventilation, certification processes, and sanitation standards. The government has promised rigorous audits to ensure compliance, with violators facing hefty fines in the thousands of euros.
Targeting the Airbnb Boom
Over the past few years, Greece has seen a surge in short-term rentals, especially in popular tourist hotspots like Athens and Thessaloniki. While this has benefited property owners and investors, it has simultaneously driven rental prices to unaffordable levels for many Greek families. The government believes this unregulated growth has left long-term renters with few options, forcing them to compete with tourists for available housing.
In a particularly noteworthy move, the government announced a year-long suspension of new Airbnb licenses in several districts of central Athens, effective January 1. This is part of a broader effort to cool the short-term rental market in high-demand areas.
Golden Visas and Housing Struggles
The issue has been compounded by Greece's Golden Visa program, which allowed foreign investors to secure residency by purchasing properties worth €250,000 or more. Many of these properties were converted into short-term rentals, further exacerbating the housing crunch.
Prime Minister Kyriakos Mitsotakis has been vocal about the need for regulation without completely demonizing short-term rentals. Speaking at the Thessaloniki International Fair in September 2024, he proposed incentives to encourage property owners to transition from short-term to long-term rentals.
A Fee for the Future
Short-term rental properties also face additional costs under the government's climate crisis resilience fee, which was introduced last year. From April to October, the fee—up to €10 per night—applies to hotels and rentals listed on platforms like Airbnb. The revenue is directed to local communities to improve infrastructure strained by the influx of summer tourists.
Balancing Growth and Housing Needs
The legislation reflects a delicate balancing act. Greece is a tourist powerhouse, and short-term rentals play a key role in its economy. However, the government hopes these measures will ease pressure on the housing market without completely stifling the short-term rental sector.
With compliance audits and stricter standards now in place, the question remains: will this crackdown bring relief to struggling Greek households, or will it push property owners and tourists to find loopholes? For now, all eyes are on how this ambitious plan unfolds.
With information from Greek Reporter
