Seven new interventions to address the housing crisis are included in the government’s package, with the main focus on extending existing tax incentives until 2030 for long-term rentals, home renovations, and construction. At the same time, the ban on issuing new short-term rental licenses in central Athens and Thessaloniki is being extended through 2027, while the imposition of VAT on newly built properties is being frozen for another four years.
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Starting from the new year, the property tax (ENFIA) exemption is also being expanded, with the measure now covering an additional 131 settlements and approximately 62,000 property owners. Meanwhile, a new “My Home III” program worth €2 billion is being launched to support first-home purchases through low-interest mortgage loans.
The package is rounded out by an increase in the property transfer tax from 3% to 15% for homes purchased by citizens of non-EU countries. This measure targets the reduction of investment demand from foreign buyers and, by extension, aims to ease the upward pressure on property prices, particularly in areas where overseas demand has risen significantly.
Greece’s housing crisis: the seven government measures for real estate
In detail, the package includes the following:
1. Extension until 2030 of the full three-year income tax exemption for property owners who have vacant properties and rent them out as a primary residence, as well as for those converting short-term rentals into long-term leases. To qualify for the tax exemption, the property must have been vacant or used as a short-term rental for at least three years prior to being rented out, must not exceed 120 sq.m. in size — unless the tenant has more than two children, in which case the 120 sq.m. limit increases by 20 sq.m. per additional child — and the lease must be for a minimum period of three years.
2. Extension for the period 2027–2030 of the tax deduction of up to €16,000 that property owners can earn over five years for expenditure on energy efficiency, functional, and aesthetic upgrades to residential or commercial properties, provided that expenses have been paid electronically and the relevant documentation has been submitted to the Greek tax authority (AADE).
3. Suspension of the 24% VAT on newly built properties for the period 2027–2030, a measure that will significantly reduce costs for buyers, who will only be subject to the 3% property transfer tax based on the property’s objective value.
4. The restriction on new Airbnb registrations in municipal districts of Athens and Thessaloniki will remain in force through 2027.
5. Launch in early 2027 of the new “My Home III” program worth €2 billion for first-home purchases through low-interest mortgage loans, with expanded eligibility criteria to include more beneficiaries. Specifically: the maximum age limit is raised from 50 to 55 years; the maximum loan amount increases from €190,000 to €230,000, while the 90% cap remains in place; the maximum market value of the eligible property increases from €250,000 to €300,000; for families with more than four children, the maximum square footage limit increases by 10 sq.m. per additional child; and the income supplement per child rises from €5,000 to €7,000.
6. Abolition from 2027 of the ENFIA property tax on primary residences in settlements with populations of up to 2,000 inhabitants — up from the previous threshold of 1,500 — and up to 2,200 inhabitants in the Region of Western Macedonia. The exemption applies exclusively to ownership rights over the primary residence of individuals located in these settlements, provided that the total value of full ownership of the property, as calculated for tax purposes, does not exceed €400,000. The measure affects 131 additional settlements and approximately 62,000 property owners.
7. Increase from 1 July 2027 of the property transfer tax from 3% to 15% for home purchases by citizens of non-EU countries.
