Tenants seeking housing outside major urban centers due to appointments or transfers, owners of old and vacant properties who are offered generous renovation incentives, as well as construction and investment companies that can now place unsold properties on the market or invest in converting buildings for long-term rental with favorable tax treatment, are the winners from the new package of housing interventions announced by Prime Minister Kyriakos Mitsotakis.

On the other hand, the new framework introduces stricter rules for short-term rentals, putting a brake on the issuance of new Airbnb licenses in the center of Thessaloniki. At the same time, in zones where the issuance of new short-term rental licenses is prohibited in Athens and Thessaloniki, when a property is transferred—whether through sale, parental gift, or inheritance—it is removed from the Short-Term Rental Registry and can no longer operate as an Airbnb. Instead, it must be directed either to long-term rental or owner-occupation. In this way, the short-term rental license is detached from the property and no longer follows it upon transfer.

At the forefront of those benefiting are tenants who relocate to regional areas for work-related reasons. This category includes teachers, doctors, and nurses who rent housing in the area where they serve. These beneficiaries will now receive a rent refund equivalent to two months’ rent, with a maximum amount of €800 per month, without the application of income criteria. It is recalled that currently the rent refund applies horizontally to tenants of primary or student residences who meet specific income and asset criteria and corresponds to 1/12 of the total annual rent paid in the previous year, with a maximum of €800 per year, increased by €50 for each dependent child, while the benefit is paid automatically based on tax return data.

At the heart of the housing package is the new renovation program, which aims to bring thousands of vacant properties back onto the market. To address the “trapped” stock of old homes, the government is planning a new “Renovate” program for 2026—the first in Europe to allow funding for full renovations of private residences using European resources. Its budget is expected to reach €500 million and, unlike the “Save Energy” program, it will not be limited to energy upgrades but will also cover general and functional renovations.

The goal is to renovate 15,000 to 20,000 homes, mainly closed and old apartments from the 1980s and 1990s, as well as older properties, so that a significant portion of today’s inactive housing stock returns to use. The new program will primarily concern properties with building permits issued by 31 December 1990 and with a surface area of up to 120 square meters—typical family homes that also concentrate the greatest housing need.

The subsidy will be granted per square meter, with a cap of up to €300 per sq.m., while total support per residence may reach approximately €36,000. The basic subsidy rate will range from 80% to 90% of eligible costs, with increases for families with three or more children, households with persons with disabilities, as well as for properties in island or mountainous areas.

The government’s bet on increasing housing supply largely runs through the construction sector and investors. As the prime minister explained, the new framework allows legal entities to build or allocate properties exclusively for long-term rental for a period of ten years, with rental income deductible from income tax. In this way, a strong incentive is created for unsold apartments to move into the long-term rental market, as well as for new investments to be designed from the outset with permanent housing in mind.

This measure is combined with a regulation by the Ministry of Environment and Energy regarding changes of use. Today, even in the center of Athens, there are old or unfinished industrial buildings which, despite having heavy-use designations, cannot be converted into residences because the General Urban Plan does not provide for it. Under the new urban planning provision, the rapid conversion of existing properties of other uses into residences will be permitted, providing an outlet for old factories, warehouses, and commercial spaces.

As for short-term rentals of the Airbnb type, the prime minister’s reference to the “center of Thessaloniki” points to the historic and commercial core of the city, where the highest concentration of Airbnbs and the strongest pressure on rents have been recorded. These are areas around Aristotelous Square, Egnatia, Tsimiski, Ladadika, and the waterfront zone—neighborhoods where tourist use has significantly limited the availability of housing for permanent rental. The “freeze” on new short-term rentals is now being extended there, following the model applied in the three large districts of Athens.

In the center of the capital, a “freeze” is in effect on the issuance of new tourist accommodation licenses in eight protected zones—Plaka, Mets, Thiseio, Psyrri–Omonia, Exarchia–Museum–Strefi Hill, the Commercial Triangle, Piraeus Street, and Metaxourgeio—while the suspension of new licenses in the 1st, 2nd, and 3rd Municipal Communities has been extended until 2026.

Mr. Mitsotakis also referred to the issue of tax evasion in rental income, noting that if greater compliance is achieved and the actual rents declared to the tax authorities are more accurately reflected, a further reduction in the taxation of rental income will also be examined, as the broadening of the tax base would create the necessary fiscal space.