Tax bills with double property tax for tens of thousands of vacant properties held in the portfolios of banks and non-performing loan servicing companies (servicers) are expected to be sent by the tax authority by the end of February.
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The measure targets houses and apartments that remain unused, while the housing crisis and rent increases pressure households and young people. According to available data, banks hold approximately 8,300 properties, while servicers hold another 11,000. Of these, 7,000 are residential, with the total cost of the double tax estimated at around 20 million euros.
Shock tax bills: Double property tax on vacant homes to stimulate housing market
The relevant provision comes into effect this year and will remain in force until 2028, while revenues from implementing the measure will be directed to actions supporting housing policy. With the double property tax, the government seeks to “unlock” thousands of properties that remain outside the market and increase housing supply to limit continuous rent increases.
The tax authority has already collected data from E9 declarations, as well as from bank registries, to identify which properties remained closed until December 31, 2025 — a milestone date for calculating the 2026 property tax. To avoid the 100% surcharge, the property must have been rented or used for at least six months during the year.
With the issuance of the relevant ministerial decision, the technical implementation details of the measure will be determined: the criteria by which a property will be characterized as “vacant,” the procedures for declaring rental, as well as exemptions that may be provided for special cases, such as properties under renovation or in areas with limited commercial demand.
This year will be decisive
The first recording by the tax authority has captured the real picture of the property stock held by banks and servicers. From there, the market will show whether the measure will work as a deterrent or will actually lead to mobilization and utilization. The census of these properties is of particular importance, as it demonstrates the real size of the vacant housing stock held by the financial system. At the same time, it will give the government a tool for monitoring and evaluating the real estate market, contributing to increasing housing supply and reducing pressure on rents.
The recording process is considered crucial so that the imposition of double property tax is done in a targeted and fair manner, without unfairly burdening entities that have already proceeded to utilize their assets. According to Finance Ministry officials, by imposing double property tax on vacant properties in the financial sector, the aim is to directly link taxation with the social and economic utilization of real estate and send the message that properties cannot remain indefinitely idle.
This year will be decisive for increasing the supply of vacant properties in the market. This is a major bet whose success will determine whether the acute housing problem can be partially addressed or will take on new explosive dimensions.
