The Greek government is completing a 29-intervention plan for housing this year, with a total fiscal cost exceeding 2.6 billion euros over the 2025-2026 period. Specifically, 9 measures will launch in 2026, introducing new initiatives that primarily aim to increase the supply of available housing, either for long-term rental or homeownership, combined with a range of tax and regulatory measures (including short-term rental restrictions).
While the government doesn’t speak of “magic solutions,” these measures aim to contribute to household relief from the acute housing problem.
Housing: New interventions scheduled for 2026
1. Old housing renovation program:
A new 400 million euro initiative from ESPA 2021-2027 is being created, with potential for extension. The program’s innovation lies in requiring only mild energy interventions (20%-40% of cost), while the remaining 60%-80% covers typical renovation expenses.
Specifically, 80% of renovation costs will be subsidized, with a 5% subsidy increase for families with three or more children and people with disabilities, plus an additional 5% for mountainous and island areas. Maximum subsidy amounts to 36,000 euros with grants up to 300 euros per square meter. 80% of the budget covers vacant homes and 20% owner-occupied residences. Eligible are houses with building permits before 1990 and up to 120 square meters. Income limits will be 25,000 euros for singles, 35,000 euros for couples plus 5,000 euros per child, and for single-parent families 39,000 euros plus 5,000 euros for each child after the first.
2. Municipal/Regional building renovation program for public service employees
Involves renovating Municipal or Regional properties in mountainous and island areas, which will be made available through long-term leasing to employees of municipal/regional services, schools, hospitals, health centers, medical clinics, police, fire service and social structures. Regional and Municipal authorities will undertake implementation. Budget will amount to 1.5% of the total Regional Program budget.
3. Two annual rent refunds for teachers, nurses and doctors in the regions
Public teachers, doctors and nurses renting accommodation outside Attica Region and Thessaloniki Regional Unit will receive an additional annual rent refund (two total), regardless of income criteria. Beneficiaries are estimated at 50,000 people, with additional fiscal cost of 20 million euros annually. The measure applies retroactively and staff will receive additional rent refunds within the first quarter of 2026.
4. Extension of short-term rental restrictions in Thessaloniki
From March 1, 2026, restrictions on new short-term rentals are extended to Thessaloniki’s 1st Municipal Community for 2026, with possibility of extension. The Municipality has 7,500 registrations, of which 4,800 in the 1st Municipal Community. For restricted areas (1st, 2nd, 3rd municipal districts of Athens and 1st Municipal Community of Thessaloniki), property transfers result in registry deletion without re-registration permission.
5. Incentive for new housing construction for long-term rental (built to rent)
Construction companies will be able to build new homes or convert existing properties to residential use, exclusively for rental with favorable terms in long-term leases of at least 10 years. Rental income will be tax-deductible from corporate income tax. Maximum rent levels will be determined by the Ministry of Social Cohesion and Family.
6. Horizontal urban planning regulation for residential uses
Urban planning legislation for rapid conversion of existing properties (built and unbuilt) with non-residential use (offices, shops, accommodations) to residential use. Abandoned, unfinished or vacant properties can be converted to housing by private parties. Companies joining the program for affordable rental for 10 years will also utilize tax deduction incentives.
7. Armed forces housing program
The measure has been announced, but technical details and costing will be published soon, within 2026.
8. Inheritance law modernization
Aims for faster resolution of inheritance disputes over housing with co-ownership that remains inactive.
9. Tenant reliability registry
Expected to enter pilot operation early 2026 and full operation by mid-2026, a development anticipated to encourage more landlords to make more apartments available for rent, which they kept “closed” due to fear of damage, uncovered obligations, etc.
Measures in effect for 2026
10. Extension of tax exemption for vacant housing long-term rental
The three-year tax exemption extends to 2026, with cost of 10 million euros for 2026 and 19 million for 2027. Application scope expands: for families with three or more children, exemption applies to homes over 120 sq.m., increased by 20 sq.m. for each child over two. Upon tenant departure within three years, exemption continues for remaining period if re-rented. For rental to medical/nursing staff, teachers and uniformed personnel, exemption applies for leases of at least 6 months.
11. ENFIA reduction/abolition in settlements up to 1,500 inhabitants
From 2026 ENFIA is reduced 50%, while from 2027 it’s completely abolished for primary residences in settlements up to 1,500 inhabitants (excluding Attica settlements except islands). For Evros, Western Macedonia and border Municipalities of Macedonia, Thrace, Epirus, it’s abolished in settlements up to 1,700 inhabitants. Affects approximately 1 million properties within 12,724 settlements, with annual cost of 75 million euros.
12. Extension of VAT suspension for new buildings
VAT suspension for new buildings continues for 2026, with annual cost of 18 million euros.
13. Extension of tax reduction for building upgrade expenses
Tax reduction for building upgrade expenses continues for 2026. Estimated annual cost: 5 million euros.
14. Extension of Athens short-term rental restrictions
Restrictions in Athens’ three municipal districts extend for 2026.
15. Social compensation
Utilization of state real estate through incentives mobilizing private initiative (e.g., property ownership percentage) for modern housing construction. Creates social housing with social rental and purchase options for socially vulnerable groups.
16. Intermediate 25% rate for rental income
From tax year 2026, an intermediate 25% rate applies to rental income of 12,000-24,000 euros (currently: up to 12,000 euros 15%, then 35%). Direct beneficiaries: 161,587 property owners. Fiscal cost: 90 million euros annually from 2027.
Measures implemented from 2025
17. My HOME II program
The program has a total budget of 2 billion euros (1 billion from TRA loan component and 1 billion from banks). Interest rates reduced by 50% from current commercial rates. Covers individuals and couples aged 25-50, with income of 25,000 euros for singles, 35,000 euros for couples plus 5,000 euros per child (single parents: 39,000 euros plus 5,000 euros for each child after the first). Expected to cover over 15,000 families. Simultaneously, “Upgrade My HOME” applies for energy upgrading of old homes with zero interest rates.
18. Three-year tax exemption for vacant properties in long-term rental
From 08/09/2024 to 31/12/2025, owners converting vacant properties (closed at least 3 years) or short-term rental properties to long-term rental are exempt from income tax for 3 years. Applies to properties up to 120 sq.m..
19. Ban on new short-term rentals in central Athens
From 1/1/2025 to year-end, new property registration in the short-term rental registry is prohibited in Athens’ 1st, 2nd and 3rd municipal districts.
20. Increase in short-term rental resilience fee
Fee increased from 0.5-1.5 euros to 2 euros in winter months and 8 euros in summer months.
21. 100% ENFIA surcharge for vacant bank and servicer properties
Double ENFIA imposed on vacant residential properties held by banks and servicers.
22. Doubling of Renovate-Rent subsidy
Maximum subsidy increased from 4,000 to 8,100 euros: from 40% subsidy on expenses up to 10,000 euros, to 60% on expenses up to 13,500 euros.
23. Rent refund
From November 2025, one annual rent refund for primary and student accommodation for 80% of renters with income and property criteria. Annual cost: 200 million euros.
Previous interventions in effect
24. 34% ENFIA reduction
Average reduction for individual property owners. Cost: 860 million euros annually.
25. Abolition of parental gift tax
For first-degree relatives, for gifts up to 800,000 euros, from October 1, 2021.
26. VAT suspension for new buildings 2020-2025
Fiscal cost: 18 million euros annually.
27. My HOME I program
Low-interest housing loan for young people or couples aged 25-39 for first home purchase. Total budget: 750 million euros from DYPA.
28. Save-Renovate for young people
Budget of 300 million euros (200 million from TRA, 100 million from National resources). Incentives for energy savings and aesthetic/functional housing renovation.
29. Renovate-Rent
Subsidy up to 40% of renovation cost and up to 10,000 euros for vacant homes to be rented long-term. Budget: 50 million euros.
Total two-year cost
These measures followed other previous ones that started from 2024, such as:
– 13% VAT and tourist tax on short-term rentals: from 1/1/2024, 13% VAT and tourist tax applies to short-term property rentals (airbnb type) for legal entities and individuals with three or more rented apartments. Additionally, to limit residential use for such purposes, the definition of short-term rental was tightened.
– Student housing allowance increase: from 1,000 euros to 1,500 euros and 2,000 euros for cohabitation. For students outside Athens and Thessaloniki, the amount increased to 2,000 euros and for cohabitation reaches 2,500 euros per student.
– Tax reduction for building upgrade expenses: from 1/1/2024, greater tax reduction for building upgrade expenses (increase from 40% to 100%). Expenses reduce income tax equally distributed over five years, with maximum total expense limit of 16,000 euros.
The total calculable cost of measures in the 2025-2026 period amounts to 2.637 billion euros, broken down as follows:
– New programs 2025-2026: 420 million euros
– My HOME II (2025): 2,000 million euros
– Operational measures 2026: 217 million euros
Added to the cost of these actions are those for continuing measures, such as rent refunds (200 million euros/year) and 34% ENFIA reduction (860 million euros/year). Note that certain measures, such as the armed forces housing program or reliability registry, don’t have (yet) determined budgets.
