Greece’s Airbnb Property Managers Threaten February Shutdown Over Proposed Tourism Law

The Greek Property Managers Association (PASIDA) has announced strong opposition to proposed regulations in the Tourism Ministry’s draft legislation targeting the short-term rental market.

The measures, currently under public consultation until December 19, introduce stricter taxation, high fines, and new operational standards that PASIDA describes as unclear and difficult to implement.

In response, PASIDA plans to temporarily deactivate reservations calendars for February 2025 as a form of protest. The association also warned that, if the legislation is adopted, it will extend this action to the peak tourism month of August next year.

According to PASIDA, such a move could significantly impact Greece’s tax revenues, as short-term rentals are a key contributor to the economy.

Key concerns over draft law

Photo source: Airbnb

PASIDA argues that the proposed regulations would impose an unsustainable burden on the short-term rental sector, threatening its viability. The association highlights that this is the third time in a year that new measures have been introduced, ostensibly to address Greece’s housing crisis. Among the measures are increased taxes, heavy penalties, and stricter requirements for property standards. PASIDA contends that these regulations are “vague”, “difficult to enforce”, and “unfairly target” short-term rentals.

The association emphasized the sector’s role as a vital pillar of Greek tourism and local economies. Short-term rentals not only boost government revenues but also support jobs and small-to-medium property owners. PASIDA estimates that short-term rentals accommodate up to 60 percent of Greece’s visitors, a figure it claims has not adversely affected hotel operations, which reportedly achieve occupancy rates of 90-95 percent and command higher room rates.

Unequal standards

A major point of contention is the introduction of new operational standards for short-term rental properties. PASIDA questions why similar standards are not being applied to long-term rental properties, suggesting “unequal treatment” of different categories of property owners.

“Do renters of different property categories belong to different classes of citizens? Shouldn’t all properties meet the same standards?” PASIDA asked in its announcement.

Potential legal challenge

PASIDA has also raised constitutional concerns about the draft law. It questions how authorities could enforce new standards without violating property rights or requiring court-issued warrants for inspections. The association warned that if the legislation is passed, it will challenge its constitutionality in court.

Broader implications

The association expressed concerns that the proposed measures could stifle the dynamic growth of the short-term rental sector, negatively affecting jobs and small-to-medium property owners. PASIDA also pointed to additional burdens, including increased municipal fees, the rising climate resilience levy, and the impact of perceived unfair competition from short-term rentals operating in a loosely regulated environment.

In its statement, PASIDA called for more balanced regulations that support both the short-term rental sector and broader housing policy goals.

PASIDA’s reaction aligns with that of the Short-Term Accommodation Managers Association (STAMA Greece), which has also expressed strong opposition to the proposed legislation, citing concerns over economic freedom and potential negative impacts on investments and urban revitalization efforts.