Real estate prices continue to surge, with the average asking price for buying a home reaching €2,647 per square meter in August, up 3.4% from last year. Rental prices show an even tighter picture: €10.31 per sq.m. nationwide, with the average price in Attica climbing to €12.10. In Kolonaki, rents now hit €17.82 per sq.m., in Ilisia €12.4, and even in Patissia, they don’t fall below €9.

Against this explosive rise, the government has detailed a package of measures aiming to bring back into circulation at least part of the 600,000 closed apartments that remain off the market, along with 240,000 properties tied up in short-term rentals. The approach marks a policy shift: not tax penalties, but incentives to return homes to long-term leases.

At the center is a complete exemption from income tax for three full years for any property that has been closed for at least three years and is leased long-term by the end of 2026. An owner renting an 80 sq.m. apartment at €600 per month would collect €7,200 annually and €21,600 net over three years without paying any tax. Without this measure, they would have owed around €3,240. The benefit is clear, especially for those with older or empty apartments previously deemed unprofitable to rent. The requirement is that the lease lasts at least three years without early termination—otherwise, the tax break is lost retroactively.

The second major benefit comes from the new rental income tax scale, effective 2026. A new intermediate tax rate of 25% will apply to rental income between €12,000 and €24,000. Currently, all income above €12,000 is taxed directly at 35%, with no middle tier.

This creates smoother, more progressive taxation and reduces the burden for many landlords, even those with higher total incomes.

For example:

• A landlord declaring €20,000 in rental income currently pays €4,600 in tax; from 2026, this will drop to €3,800, saving €800 annually.
• At €25,000, the tax falls from €6,350 to €5,150, a benefit of €1,200. The difference comes from applying 15% on the first €12,000, 25% (instead of 35%) on the next €12,000, and 35% only on the portion between €24,000–€36,000.

Thus, even landlords earning above €36,000 benefit from the intermediate band, albeit less. There’s no gain for those earning under €12,000, since that tier remains taxed at 15%. The measure mainly supports those in the €12,000–€36,000 range—a group that includes the majority of small and mid-sized landlords.

Changes to Imputed Income

A significant financial relief also comes from a 30% reduction in imputed living expenses for housing, affecting more than 470,000 taxpayers.

For example, a primary residence of 120 sq.m. currently generates an imputed income of €5,800. With the reduction, this drops to €4,040, easing the tax burden significantly—especially for those without equivalent real income. Similarly, for a 200 sq.m. residence, the imputed income drops from €14,600 to €10,200.

In addition, the surcharges on imputed income in high-value zones are reduced, benefiting owners in neighborhoods such as Pangrati, Ilisia, Nea Smyrni, and Kolonaki. Dependents with their own income are now exempt from the minimum imputed expense of €3,000, a measure that helps many families with university students.

Rent Measures

From November 2025, a rent rebate measure will apply, covering the equivalent of one month’s rent annually for main or student residences, benefiting 80% of tenants. The subsidy will be based on income and asset criteria and limited to reasonable rent levels. The state cost is estimated at €230 million per year, but the indirect effect for landlords is also positive, as tenant solvency improves and the long-term rental market stabilizes.

The tax deduction for building upgrade expenses continues into 2026, already in effect for 2025. The deduction can reach 40% of total expenses for works such as energy upgrades, insulation, window replacements, heating systems, and common area works in apartment buildings. The deductions are spread over four years. This supports owners who want to modernize their properties and make them more attractive for renting or selling.

Additionally, the suspension of VAT on new constructions is extended until the end of 2026. This exempts new properties from the 24% VAT, easing both sales and construction. For instance, a buyer of a €150,000 first home would save €36,000 in VAT. This offers relief for buyers, contractors, and private builders alike.

The “Renovate & Rent” program remains active, offering subsidies of up to €10,000 or 40% of renovation costs, provided the property is leased for at least three years.

Under “My Home 2”, young people up to 45 can acquire housing through interest-free or low-interest mortgages, with the state covering part of the interest. Social housing schemes are also being activated, using public properties in partnerships with private developers to build homes for rental or purchase by vulnerable groups.