New permits for short-term rentals are going to “freeze” in five areas in Greece as the high tourist demand has resulted in a serious housing crisis and increased long-term rents by at least 20% in the last two years.
The Greek government is moving towards extending the suspension of new permits for short-term Airbnb-style rentals to five more areas across the country both on the mainland as well as on not only on the mainland as well as on some Greeks islands.
The freezing of new permits in these 5 areas follows the decision to extend the measure for three districts in the center of Athens until 2026. the measure went in effect on 1.1.2025 and was initially thought to last for one year.
According to a report by state broadcaster ERT, the measure is expected to be implemented in Thessaloniki, Halkidiki, Santorini, Paros and Chania, areas where tourist demand has skyrocketed short-term rental listings, creating a serious housing crisis.
The massive increase of short-term properties on platforms has reduced availability for long-term rentals and has led to an increase in rents of up to 20% in the last two years.
In Thessaloniki, the picture is increasingly reminiscent of Athens with Airbnb listings constantly increasing, resulting in the disappearance of property advertisements for traditional rentals. In Chania, local authorities are calling for immediate restrictive measures in order to preserve the character of the city, while in Santorini, Paros and Halkidiki, excessive demand for short-term rentals has caused serious housing distortions, with permanent residents increasingly finding it difficult to find affordable housing.
It is worth noting that in July 2025, available Airbnb properties amounted to 245,944, offering 1,078,000 beds, 57,000 more than in July 2024. Occupancy remained at 51%, indicating stable demand. Attica remains first, gathering almost a third of the total potential, followed by the South Aegean and Central Macedonia with 26,000 properties.
New tax framework for Airbnb
A new, stricter tax framework for the operation of short-term rental properties is scheduled to be implemented from October 1, 2025.
Today, Wednesday, September 24, the Independent Public Revenues Authority (AADE) issued an updated guide for owners and managers.with questions and answers for owners and managers.
The AADE guide recalls, among others that:
From January 1, 2024, short-term rental is considered to be a rental of up to 59 days without the provision of other services beyond bed linen, regardless of whether it is done through a platform or not.
Leases of 60 days or more are characterized as long-term with the obligation to submit a rental declaration.
If additional services beyond bed linen are provided, the property is considered tourist accommodation and a start of business activity is required.
In Athens (1st, 2nd and 3rd municipal districts), properties can be re-registered in the registry, provided they were registered by December 31, 2024, with special provisions for new contracts, change of manager or transfer.
New owners/managers must re-register the property in the registry to receive a new Property Registration Number (PRN).
A natural person with up to two properties acquires income from real estate, while from three properties and more is subject to 13% VAT on all leases.
Cancellations of leases are mandatorily declared with an amending declaration in the registry, whether or not a payment is foreseen.
Foreign owners must obtain a Greek Tax number (AFM) in order to fulfill their tax obligations.
What will apply to Athens
The ban on new permits for properties located in the 1st, 2nd and 3rd municipal districts of the Municipality of Athens will also apply in 2026. However, such a property can receive a new Number in the Short-Term Residence Registration Register if it was registered in the register until December 31, 2024.
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I do not understand why only a few areas are targetted when locals are suffering due to lack of permanent affordable housing in so many other tourist destinations. In Naxos, it is a huge problem too. Rents have increased by 50- 60% in the last 7- 8 years , and that’s if you can even find sth for all year round. The old town of Chora in winter has less and less life out of season with rentals empty. It’s sad, it’s destructive, it’s unsustainable and it’s very short-sighted of local governments to turn a blind eye to these problems.
A new academic study from the Athens University of Economics and Business casts doubt on claims that short-term rentals (STR) such as properties rented through Airbnb are driving Greece’s housing crisis.
According to the research, properties listed for short-term rental represent just 0.4 percent of the country’s total housing stock— a proportion the study says is nearly insignificant.
Vacant homes overshadow short-term rentals
The study finds that the real challenge lies in the 2.28 million vacant homes across Greece, a figure that dwarfs the footprint of short-term rentals.
Even in central Athens, where Airbnb activity is most concentrated, only 1.1 percent of homes are listed for short-term lease — while more than one in four homes sits empty.
Source: “The Economic and Housing Impact of Short-Term Rentals in Greece” study by Athens University of Economics and Business
“This data confirms the minimal impact of short-term rentals on the housing market,” the authors note, adding that structural vacancy and underutilization of housing stock are more significant contributors to supply constraints.
Conducted by Professor Georgios Doukidis and his team, the study also highlights the economic contribution of the short-term rental sector.
In 2023, the industry supported 3.25 billion euros in economic activity and over 100,000 jobs, with its contribution to GDP estimated between 4.5 and 5.4 percent.