Greek PM to Announce New Measures for Short-Term Rentals Amid TIF Speech

Greek PM Kyriakos Mitsotakis.

Greek Prime Minister Kyriakos Mitsotakis is expected to announce new measures to further regulate the short-term rentals market during his speech at the Thessaloniki International Fair (TIF), which will run from September 7-15.

Now in its 88th year and organized by TIF-Helexpo, TIF is a significant platform for policy announcements.

According to press reports, Mitsotakis is not anticipated to propose “extreme” measures for the short-term rental market. Two reasons are cited: a) even if all Airbnb-type accommodations were converted to traditional long-term rentals, only about 10,000 additional apartments would be introduced to the market, and b) short-term rental activity generates approximately 600 million euros in government tax revenue, which is substantial.

Photo source: Airbnb

However, Mitsotakis is expected to announce additional regulations targeting short-term rentals in major cities such as Athens and Thessaloniki. Reports suggest that the government may impose a ban on issuing new permits in densely populated areas of Athens, including Koukaki, Kallithea and Pagrati, without affecting existing short-term leases or introducing calendar restrictions.

Conversely, the Greek government is also preparing incentives to encourage apartment owners to shift their properties to the traditional rental market. These incentives may include a three-year tax exemption on income from rentals previously listed on short-term platforms or those that have been vacant. Additionally, the government is considering increasing subsidies for the repair, restoration, and maintenance of properties that have been kept off the market.