Greece Looking to Set Limits on the Number of Airbnbs in Certain Destinations

The Greek government is seeking to curb the expansion of the short-term rental market through the newly proposed Special Spatial Framework for Tourism, which is currently available for online public consultation until September 15.

Aiming to strike a balance between the short-term rental market and the hotel industry, the new framework introduces restrictions on the number of Airbnb-type accommodations and rooms for rent in approximately 100 municipal units.

The new framework divides Greece into five categories based on the spatial distribution of tourist accommodations:

Category A: Control Areas (overdeveloped)
Category B: Developed Areas
Category C: Developing Areas
Category D: Areas with development potential
Category E: Undeveloped Areas

The framework proposes limitations on the number of short-term rental properties and rooms for rent in “Control Areas” and “Developed Areas”, determined by the total number of hotel beds in the areas in question.

The “Control Areas” encompass 18 municipal units, including locations such as Paralia (Pieria), Skiathos, Corfu, Zakynthos, Arcadia, Laganas (Zakynthos), Ermoupolis (Syros), Thira (Santorini), Oia (Santorini), Dikaiou (Kos), Heraklidon (Kos), Mykonos, Afantou (Rhodes), Ialyssos (Rhodes), Kallithea (Rhodes), Lindos (Rhodes), Petaloudes (Rhodes), Tinos, Malia (Crete), Hersonissos (Heraklion, Crete), and Nea Kydonia (Chania, Crete).

The “Developed Areas” cover 84 municipal units, including regions in Thessaloniki (such as Thermaikos, Stavroupoli), Athens (including the city center, Kallithea, Alimos, Glyfada, Moschato, Nea Smyrna, Palaio Faliro, Vouliagmeni), Attica (including Nea Makri and Anavyssos), and Piraeus. The “Developed Areas” also include municipal units on islands such as those in the Argosaronic Gulf (including Agistri, Aegina, Poros, Spetses), the Cyclades (including Ios, Sifnos, Naxos, Koufonisia, Paros, Antiparos), the Dodecanese (including Patmos and Rhodes), and Crete (including units in Chania, Rethymno, and Heraklion).

Speaking to the Greek press, a representative of Greece’s Short-Term Accommodation Managers Association (STAMA) expressed concerns, stating that the new Special Spatial Framework for Tourism contains “gaps and ambiguities.”

According to the STAMA representative, while there is an effort to limit the number of Airbnbs in certain areas to avoid surpassing hotel capacity, the framework simultaneously allows abandoned settlements to be converted into hotels and provides incentives for investors.

Furthermore, the framework permits the development of new accommodations in the 3-, 4-, and 5-star hotel categories based on the saturation and carrying capacity of each municipal unit.

It is reminded that in June, STAMA initiated legal action against a government decision to tax legal entities for Airbnb-style activities. The appeal is scheduled to be heard in Greece’s highest administrative court in October.