The short-term rental market is entering a new phase, as a series of legislative interventions — promoted by different government ministries — are gradually reshaping the operating framework for Airbnb-type properties. The changes concern geographic restrictions on new registrations, the conditions for creating new residential units through change of use, the operation of apartment buildings, as well as the system of inspections and penalties.
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These regulations form part of the government’s broader housing policy strategy and its efforts to make better use of the available building stock. According to the rationale behind these legislative interventions, the goal is to establish rules that balance the operation of short-term rentals with the needs of the residential property market — without abolishing this form of tourist accommodation altogether.
A central change is the continuation of the registration freeze on new properties in the Short-Term Accommodation Property Registry, in central Athens neighborhoods where the measure is already in effect. The suspension applies to the 1st, 2nd, and 3rd Municipal Districts of the Municipality of Athens, affecting areas with a high concentration of short-term rental properties, such as the historic center, Plaka, Monastiraki, Koukaki, and Metaxourgeio. At the same time, a similar restriction is being introduced in Thessaloniki for the first time. From July 1 to December 31, 2026, no new properties located in the 1st Municipal Community of the Municipality of Thessaloniki — which encompasses the city’s historic and commercial center — will be permitted to register in the Short-Term Accommodation Property Registry. This measure applies only to new listings and does not affect properties already registered in the Registry.
The new measures are accompanied by stricter penalties for those who attempt to circumvent the restrictions. Property owners, usufructuaries, sublessors, or managers who offer a property for short-term rental without being entitled to a new Registry registration face an administrative fine equal to 50% of the income generated from that activity from the start of the ban until the date of inspection. The minimum fine is set at €20,000. In the event of a repeat violation within the same tax year, the fine increases to cover the full amount of rent collected from the previous inspection to the new one, with a minimum threshold of €40,000.
Meanwhile, the Ministry of Tourism, in cooperation with the Greek Independent Authority for Public Revenue (AADE), is moving toward a more organized market oversight model, incorporating digital cross-checks, administrative audits, and on-site inspections. The first phase covers approximately 1,500 properties nationwide, with plans for a gradual expansion of controls.
Legality requirements
Property managers are required to hold, among other things, a civil liability insurance policy, a declaration from a licensed electrician, fire extinguishers, smoke detectors, a first aid kit, pest control certificates, and compliance with all applicable safety and suitability standards. Violations — such as refusing an inspection, failing to produce required documentation, or non-compliance with standards — carry a fine of €5,000, which can rise to €10,000 for a repeat offense and up to €20,000 for subsequent violations.
Another significant intervention concerns residential units to be created through the change of use of existing buildings. The new framework allows the conversion of old commercial, office, light industrial, and other legally designated spaces into residential units, with the aim of bringing buildings that have remained outside residential use back into productive use. However, these newly created residences will not be permitted to be listed on short-term rental platforms for five years following the completion of the conversion. According to the rationale behind this provision, the measure is intended to channel newly created housing toward the long-term rental market rather than directly into the tourist accommodation sector.
The change of use is permitted under specific conditions: it applies only to the existing, legally compliant building or a section thereof, does not allow for an increase in floor area or volume, and requires the issuance of a building permit. In addition, a special fee of 5% of the objective land value is required, with the proceeds directed to the Green Fund.
A separate intervention is being advanced by the Ministry of Justice through a comprehensive reform of horizontal and vertical property law. The new framework aims to address the disputes that have arisen in apartment buildings over the use of units as short-term rentals, including issues related to shared space usage, security, compliance with building regulations, and relations between co-owners. The changes apply to legislation dating back to 1929 and include easier amendment of apartment building regulations, a clearer role for property managers, and faster dispute resolution procedures. Changes are also planned for decision-making processes related to repairs and energy upgrades, in order to facilitate projects such as the installation of solar panels, electric vehicle chargers, and other modern infrastructure.
These successive interventions signal that the short-term rental sector is moving into a stricter and more tightly regulated operating environment.
Originally published in “Kyriakatiki Apogevmatini”
