What are the immediate measures to increase housing availability?
The Greek government is launching several direct interventions designed to bring vacant properties back into the residential market. By providing financial incentives for renovations and imposing limits on short-term rentals, the administration seeks to stabilize rental prices and increase the supply of long-term housing options.
Renovation grants and energy upgrades
A central pillar of this plan involves the renovation of older homes through state-funded subsidies. According to the Ministry of Social Cohesion and Family, combined with funds from the Ministry of National Economy and Finance via NSRF (ESPA), the government will subsidize both structural renovations and energy efficiency upgrades. A guide for the 'Home Renovation' action was published on October 20, 2026.
The financial support for these works can reach up to €3 ability to €36,000, with an additional €2,500 available for supportive services. The subsidy rates typically range from 70% to 80% of the total cost depending on the household income level, but these can increase to 85% or even 95% under specific conditions. While applications have not yet officially opened, the platform will prioritize vacant homes before expanding to primary residences. Currently, 94,000 eligibility certificates have already been issued, including 14,000 for vacant properties and 80,000 for owner-occupied homes.
Tax incentives for long-term rentals
To encourage landlords to move away from short-term holiday rentals, the government has extended income tax exemptions for the first 36 months of long-term leases until December 31, 2027. This measure applies to eligible properties up to 120 square meters, with an additional 20 square meters allowed for each of the tenant's more than two dependent children. To qualify, the property must generally have been vacant or not used as a residence for the previous three tax years. There is also a provision for properties that were exclusively used for short-term rentals in the previous tax year, provided they transition to long-term leases.
Restrictions on short-term rentals in urban hubs
In an effort to curb the conversion of permanent housing into tourist accommodations, the 'freeze' on new short-term rental registrations in Athens and Thessaloniki will continue through 2027. This restriction specifically targets three municipal districts in Athens and the first municipal district of Thessaloniki. It is important to note that this is not a general ban on existing short-term rentals, but rather a restriction on new registrations within these saturated residential zones.
How will new housing programs support homeowners in 2027?
Starting in January 2027, the government will introduce more structural support for homeownership and social housing through new budgetary allocations and specialized lending programs.
The 'Spiti Mou III' program
The 'Spiti Mou III' program is a €2 billion initiative designed to provide low-interest housing loans through the Hellenic Development Bank. The program features specific eligibility criteria: applicants must be up to 55 years old, and the property's commercial value must not exceed €300,000. The maximum loan amount is capped at €230,000, covering up to 90% of the property value. To assist larger families, the program includes expanded income limits and allows for larger properties with more square footage for multi-child households.
Expansion of social housing and 'build to rent' models
The government is also investing heavily in social infrastructure. A €435 million plan is set to create 2,350 energy-efficient homes within four inactive military camps. Additionally, approximately 450 homes will be created by renovating existing public buildings. The plan also explores 'social exchange' models, with the first eight public properties already identified for this purpose.
Furthermore, a new incentive for 'build to rent' developments is being prepared. This involves tax benefits for developers constructing buildings specifically intended for long-term rental. While the exact terms and start dates are still being finalized, the objective is to add hundreds of new units to the long-term rental market.
What changes are coming to rental subsidies and property taxes?
Both renters and owners will see significant shifts in tax obligations and direct financial assistance as new regulations are integrated into the upcoming multi-law bill scheduled for parliamentary vote in November.
Rental subsidies and income tax relief
Renters will receive a subsidy payment on November 30, covering the 2025 tax year. Notably, doctors, nurses, and teachers serving in regional areas will receive a double refund to help ease the cost of living. For landlords, a new interim tax rate of 25% will apply to rental income between €12,000 and €24,000 for the 2026 tax year. This is intended to incentivize owners to open up their properties or pass tax savings onto tenants through lower rent.
ENFIA tax exemptions for small settlements
From 2027, the ENFIA property tax exemption will be extended to more small settlements. This includes primary residences in towns with up to 2,000 inhabitants, and up to 2,200 inhabitants in Western Macedonia (excluding Attica, except for the Islands Regional Unit). To qualify, individuals must have their tax residence in Greece, and the taxable value of their full ownership must be under €400,000. This exemption applies to the primary residence rather than the owner's entire property portfolio.
Extensions for construction and renovation
The Ministry of Finance's multi-law bill also extends several existing tax benefits until the end of 2027. These include the tax reduction for eligible building upgrade expenses and the suspension of VAT on new constructions, providing continued momentum for the building and renovation sectors.
Frequently asked questions
What is the maximum subsidy for home renovations?
The renovation and energy upgrade subsidy can reach up to €36,000 for works, with an extra €2,500 available for supporting services. Depending on the household income, the state covers between 70% and 80% of the cost, potentially reaching 85% or 95% with specific increases.
Who is eligible for the 'Spiti Mou III' loans?
Eligible applicants must be under 55 years of age. The property must have a commercial value of no more than €300,000, and the maximum loan available is €230,000, which can cover up to 90% of the total property value.
How does the short-term rental restriction work?
The restriction is a freeze on new registrations for short-term rentals in specific areas of Athens and Thessaloniki. It does not ban existing short-term accommodations but prevents new ones from being registered in three districts of Athens and one in Thessaloniki to protect long-term housing.
When will the rental subsidy be paid?
The rental subsidy for the 2025 tax year is scheduled to be paid on November 30. Residents in regional areas working as teachers, nurses, or doctors are eligible for a double refund amount to assist with their housing costs.
What are the requirements for the ENFIA tax exemption?
The exemption applies to primary residences in settlements with up to 2,000 inhabitants (2,200 in Western Macedonia). The property's taxable value must be below €400,000, and the owner must have their tax residence in Greece.
Key takeaways
- Renovation subsidies for homes can cover up to 95% of costs, reaching €36,000.
- The 'Spiti Mou III' program offers low-interest loans for properties up to €300,000.
- Short-term rental registrations are frozen in specific Athens and Thessaloniki districts.
- ENFIA tax relief will expand to smaller settlements with under 2,000 inhabitants in 2027.
- Landlords can receive a 36-month income tax exemption for new long-term leases.
Synthesis of housing market transitions
The Greek government's multifaceted approach represents a significant shift toward prioritizing long-term residential stability over short-term tourism gains. By combining aggressive renovation subsidies with strict urban rental controls and new credit programs like 'Spiti Mou III', the policy aims to address both the quality and quantity of available housing. While the measures provide relief for specific groups—such as regional public sector workers and families in small settlements—the ultimate success of these reforms will depend on the effective rollout of the digital platforms and the actual volume of properties transitioned from the holiday market back into the hands of permanent residents.
