Greece Introduces Tax Incentives to Address Housing Crisis and Promote Insurance

To combat rising rental prices and ease the housing crisis, the Greek government is offering a three-year tax exemption on rental income for property owners transitioning homes or apartments from idle status or short-term rentals to long-term leases.

Eligible properties, up to 120 square meters in size, must be rented for at least 36 months under contracts signed between September 8, 2024, and December 31, 2025.

Conditions for tax exemption

To qualify, property owners must have declared the properties as idle in their 2022 and 2023 tax returns or reported them as short-term rentals for at least one year prior to entering the long-term rental market.

According to to Greece’s Independent Public Revenue Authority (AADE), the tax exemption will be revoked if the property’s usage changes during the three-year period, such as re-entering the short-term rental market or remaining vacant after the long-term lease ends.

Housing tax reduction for insured properties

Starting in 2025, homes insured against natural disasters such as earthquakes, fires, and floods will benefit from reduced annual property taxes (ENFIA). Properties valued up to 500,000 euros will receive a 20 percent reduction, while those exceeding this value will get a 10 percent discount.

To qualify, insurance contracts must cover the full reconstruction value of the property, excluding land value, and be valid for at least three months of the preceding year. For partial-year coverage, tax reductions will be proportional to the insurance duration.

The measure aims to encourage disaster preparedness through insurance.