New developments in the taxation of real estate income are coming to the forefront, with upcoming tax interventions expected to take center stage among the announcements at the Thessaloniki International Fair (TIF). The measures aim to increase housing supply in the market, unlock vacant properties, and provide incentives for long-term rentals — at a time when rental prices continue to rise.
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TIF: What is being planned for real estate
According to tax specialist Filothei Makridaki, who spoke on the morning of Thursday (13/08) on ERTnews, a new tax bracket scale for rental income is expected to take effect from the 2026 fiscal year:
- For income up to €12,000, the tax rate remains at 15%.
- From €12,000 to €24,000, the tax rate is set at 25%.
- From €24,000 to €35,000, the tax rate rises to 35%.
- For income exceeding €35,000, a rate of 45% applies.
The new intermediate bracket of 25% reduces the tax burden for a significant portion of property owners.
A practical example: For an annual rental income of €20,000, under the previous tax scale the tax owed amounted to €4,600. Under the new scale, this drops to €3,800 — representing an annual saving of €800.
The change applies to income earned throughout 2026 and will be reflected in tax returns filed in 2027.
From October 1st, paying rent via bank transfer takes on particular importance for both tenants and landlords.
Cash payments could carry financial consequences. Tenants risk losing the rental rebate they are entitled to, as well as related housing allowances, while landlords may forfeit the 5% tax deduction applicable to rental income.
What is under consideration
Also on the table is an extension of the three-year tax exemption for property owners who bring vacant properties into the long-term rental market. The measure applies, among other cases, to properties listed as vacant on the E2 tax form for a specified period that are subsequently made available for long-term lease. Similarly, an incentive is being considered for short-term rental properties that convert to long-term leases.
The goal is to return more homes to the housing market and increase supply, thereby easing pressure on rental prices. Under consideration as well is the continuation of the tax incentive for property renovations, offering a tax deduction of up to €16,000 over a five-year period. This measure targets the renovation of older or vacant properties and their reintroduction into the residential housing market.
Consideration of extending the VAT suspension on new buildings
The tax package under discussion also includes a potential extension of the suspension of the 24% VAT on new residential construction. Under the current regime, where the VAT suspension applies and the relevant conditions are met, a 3% property transfer tax is applied instead.
