Renovations of vacant homes, tax incentives to bring more properties onto the long-term rental market, and restrictions on new short-term lets in areas under housing pressure are just some of the measures the government is putting into effect immediately to increase the number of homes available and ease pressure on rents.
The plan also includes a new housing programme, “My Home III”, from January 2027, as well as more social housing, so that more households can own their home.
At the same time, the rent refund due to be paid to thousands of eligible recipients at the end of November is being extended. Further measures and special tax provisions are also due in the new year, included in the omnibus bill linked to the Thessaloniki International Fair (TIF), which is being put forward for a vote in parliament in November.
Immediate measures to bring homes back onto the market
As the measures are rolled out one after another, tenants and property owners will need to assess each new measure to decide whether, and to what extent, it works for them.
Specifically, the measures coming into force offer:
Grants covering 70% to 95% of renovations to older homes: Under this programme from the Ministry of Social Cohesion and Family, funded by the state through the NSRF via the Ministry of National Economy and Finance, a combination of renovation work and energy-efficiency improvements will be subsidised. On 20 October, the implementation guide for the “Home Renovation” scheme was published, covering renovation and energy-efficiency works. The grant is worth up to €36,000 for the work, with the option of up to a further €2,500 for support services.
Basic grant rates range from 70% to 80% of costs, depending on income band, but can rise to 85% and 95%, respectively, with the top-ups provided for under the scheme.
Applications for funding have not yet opened. The online platform will first be activated for vacant homes and then for properties already used as a primary residence, on dates to be announced.
A total of 94,000 certificates of eligibility have already been issued to interested applicants. Of these, 14,000 relate to vacant homes and 80,000 to owner-occupied properties. A certificate of eligibility does not automatically mean that funding will be approved. Vacant homes may either be occupied by their owners or rented out as a primary residence after renovation. In either case, they will help meet households’ long-term housing needs and ease pressure on the housing market.
Tax incentives for vacant homes returned to the long-term rental market: The income-tax exemption on rental income for the first 36 months has been extended until 31 December 2027. The measure, introduced by the Ministry of National Economy and Finance, applies to eligible homes of up to 120 sq m, with an additional 20 sq m for each dependent child of the tenant beyond the first two, and to leases of at least three years.
As a rule, the home must have been vacant or not used as a residence during the previous three tax years. It may also have been used exclusively for short-term rentals in the previous tax year, provided it is now returned to the long-term rental market. A special provision also allows for limited-term leases of at least six consecutive months to doctors and nurses in the public sector, teachers in public education and uniformed personnel. The exemption does not automatically apply to every new lease and is subject to specific conditions for it to remain in force. The extension is included in the TIF omnibus bill awaiting a vote.
Restrictions on new “Airbnb” listings in Athens and Thessaloniki: The “freeze” on new property registrations in the areas concerned will remain in place in 2027. It covers three municipal districts of Athens and Thessaloniki’s 1st municipal district, with the aim of limiting the further shift of homes from long-term to short-term rentals. The measure applies to new listings in these areas and is not a blanket ban on existing accommodation.
New measures in 2027
Further measures will begin in January:
New “My Home III” programme: The €2 billion programme is expected to offer low-interest mortgages through the Hellenic Development Bank. The announced limits are a maximum age of 55 for eligible borrowers, a property market value of up to €300,000 and a maximum loan of €230,000, covering up to 90% of the property’s value. Higher income thresholds are planned to allow more families with children to qualify, along with larger homes with more floor space for large families, helping them to own their own home.
New social housing on public land: Plans provide for 2,350 energy-efficient homes on four disused military bases, with a budget of €435 million, and around 450 homes created by renovating public buildings. A social land-for-housing scheme is also being advanced, with plans to make use of the first eight public properties. These homes are planned but have not yet been delivered.
New incentive to build homes for rent: Tax support is planned for “build-to-rent” developments — buildings intended for long-term rental. The terms, size of the incentive and start date have not yet been specified, but the aim is to add hundreds of new homes for long-term rent.
Measures to support tenants and property owners
Other measures coming into effect for the first time or being expanded will also provide “relief” for tenants and property owners, including:
Rent refund: The subsidy for the 2025 tax year will be paid on 30 November, covering the months in which recipients paid rent. Doctors, nurses and teachers working in regional areas are eligible for a double refund, easing the burden on households.
Lower tax on rental income for property owners: For rent received this year (the 2026 tax year), an intermediate rate of 25% will apply to the portion of property income between €12,000 and €24,000. The tax relief is intended to encourage property owners to bring homes onto the rental market, or to pass some of their tax savings on to tenants by lowering the rent they charge.
Property tax exemption extended to more small settlements from 2027: The expansion covers primary residences in settlements with up to 2,000 residents, or up to 2,200 in Western Macedonia, with the exception of Attica apart from the Islands regional unit. It applies to individuals who are tax-resident in Greece and whose taxable value for full ownership is up to €400,000. It does not, however, cover all the properties owned by each taxpayer.
Tax extensions for renovations and construction: The Ministry of National Economy and Finance’s omnibus bill extends until the end of 2027 the tax reduction for eligible building-upgrade expenses, the suspension of VAT on new buildings and the suspension of capital gains tax on property transfers. While the VAT suspension is in force, the developer submits an application and the relevant transfers are subject to a reduced transfer tax of 3% instead of VAT.
Higher transfer tax for buyers from abroad: From 1 July 2027, the rate will rise from 3% to 15% on home purchases by individuals who are not tax-resident in EU or EEA countries. This will act as a barrier to bulk property purchases by investors from the Middle East, China and elsewhere. The criterion is the buyer’s tax residence, not their nationality.
SOURCE: ANA