The government, not local municipalities, will decide whether to freeze or allow new short-term rental permits like Airbnb. This policy starts with three main districts of Athens (1st, 2nd, and 3rd), where new Property Registration Numbers (AMAs) will not be issued for at least one year. After a year, the situation will be reassessed, and inspections in other urban centers will determine whether short-term rentals are affecting the availability of long-term rentals.

Prime Minister Kyriakos Mitsotakis has made it clear that the restriction on short-term rentals could extend to other areas if the issue worsens. When will restrictions be imposed? A ratio between short-term and long-term rentals will be established, and if it becomes skewed toward short-term rentals, new licenses for platforms like Airbnb will be stopped. This ratio will be determined locally, even down to postal code levels, ensuring precise regulation. The freeze won’t apply across entire municipalities but rather to specific zones within them, based on annual reviews.

For the three-year tax exemption on vacant properties rented out for long-term leases, the model proposed by the Hellenic Property Federation (POMIDA) will be followed. Currently, private landlords can deduct 5% for repair and maintenance costs. This deduction will increase to 100% for new leases with a minimum term of three years if the property has been vacant for the entire previous year or had an active short-term rental listing up to a certain deadline.

The fiscal impact of this policy will be minimal since the state currently collects only property taxes (ENFIA) from these properties. On the other hand, it’s expected that thousands of properties will enter the rental market, potentially lowering rents and benefiting both landlords and tenants.

It’s worth noting that rental income is taxed from the first euro at a rate of 15% for income up to €12,000. For higher brackets, the rates are 35% for income between €12,001 and €35,000 and 45% for income over €35,001.

According to POMIDA, this measure will benefit everyone involved:

• Renters: More housing options and lower rents.
• Property Owners: An incentive to make vacant properties available for long-term rent.
• Landlords with existing tenants: The market balance will improve, stabilizing rental prices.
• The State: This is the most effective way to address the housing shortage without significant fiscal loss.