The government plan to provide relief to households affected by the severe housing crisis includes more tax cuts for hundreds of thousands property owners, as well as direct financial support for 1 million renters. The draft state budget for 2026, submitted to Parliament last Monday by Minister of National Economy and Finance Kyriakos Pierrakakis, reveals a total of 10 new measures worth approximately half a billion euros that citizens will see gradually implemented through 2026.
Read: November 2025 pensions: When they will be paid (Video)
“1 rent payment” this November…
However, the implementation begins this November. The first of nine new measures will be delivered in about a month, as a cash refund of one full monthly rent payment to tenants. Over 1 million beneficiaries will receive 1/12 of the rent they declared paying in 2024. They will receive up to €800 “in their pocket” from the Greek state, based on the rent each person declares they pay.
The regulation applies to those renting primary residences as well as those paying for student accommodation. Income and asset criteria make nearly 80% of the country’s renters eligible. The rent refund is provided in addition to existing housing or student allowances already received from other agencies (OPEKA, Ministry of Education, etc.).
The measure costs €230 million. However, it wasn’t included in last year’s 2025 budget. Announced mid-year, it will be given as a permanent measure, not as an emergency or one-time allowance. Funded by revenue from tax evasion prevention, it will be distributed every November, this year and in the future. This is officially reflected for the first time in the 2026 budget draft. Since the amount each renter receives depends on their declared rent, the subsidy may increase in coming years as owners and renters gradually declare actual (now significantly increased) rental payments.
The 8 measures for 2026
After the rent refund, 8 other measures and interventions are planned to roll out, creating new conditions that affect plans, decisions, and prospects in the real estate market. All target the housing issue, and citizens will see them gradually implemented from January 1, 2026.
The 8 measures, with a total budget cost exceeding €200 million, include:
1. Tax exemptions to open “vacant” homes
Those who kept their homes closed for years without tenants, or made them available exclusively for short-term tourist rentals, will have more incentives to offer them for long-term rental. Those who rent to tenants for the first time by December 31, 2026, are entitled to full tax exemption for three years. Under the new terms effective from November, more property owners are guaranteed not to pay any tax on rental income for the next 36 months.
The measure already applies to homes declared as “vacant” to tax authorities. However, the exemption terms for owners are changing completely.
The innovative element is expanding the scope in three directions:
– Three-year tax exemption will now be offered to owners renting large properties over 120 sq.m., previously excluded. The new system opens homes with tax exemption up to 140 sq.m. for families with three children, up to 160 sq.m. for families with 4 children, up to 180 sq.m. with 5 children, up to 200 sq.m. with 6 children, as the limit increases by 20 sq.m. for each child above two.
– Property owners are protected from early departure risk if tenants leave before completing the three-year period: they won’t have to return money to tax authorities – which was many people’s fear that negated the measure. Now the exemption will be calculated “monthly” rather than as a total three-year period, continuing for the remaining time until 36 months from the property’s first rental are completed, provided the property is re-rented within three months if vacated.
– “Flexible” rental of 6 months or more is permitted and remains tax-free, instead of the current 36-month requirement, especially for rentals to medical or nursing staff, public educators, and uniformed personnel of the Armed Forces and Security Corps who frequently relocate for work.
All changes will take effect after the new tax law is published in the Official Gazette, most likely by early November. Subject to final provisions as voted and implemented, the measure is designed to cover existing residential rentals. The measure aims to bring thousands of homes that remain closed to long-term rental. In the first implementation of changes, benefits for those rushing to take advantage from November will appear in 2025 income tax clearance certificates issued in spring 2026.
2. 30%-35% reduction in housing presumptions
For the first time in nearly twenty years, presumptive income is reduced by 30% or 35% – the basis on which tax authorities annually tax hundreds of thousands of property owners and renters based on their home’s square footage rather than actual declared income.
A total of 477,000 taxpayers are caught annually in tax authority presumptions. They will see for the first time in their tax clearances the fictitious (presumptive) income they paid taxes on reduced by at least €50, or up to €7,000 in areas with very high zone prices. This significant relief will appear in 2026 declarations covering 2025 income.
3. Rental income tax scale changes
From 2026, an intermediate tax rate of 25% (instead of 35%) is established for rental income between €12,000-€24,000.
The measure is estimated to benefit approximately 161,000 property owners at an annual cost of €90 million. The 10 percentage point reduction is expected to contribute to tax compliance and rental price restraint, as landlords will have less incentive to hide income or burden tenants with additional costs.
4. ENFIA: reduction and abolition in 12,720 settlements
From 2026, the ENFIA property tax paid by owners is reduced by 50% for primary residences in settlements with up to 1,500 inhabitants – while from 2027 the tax is completely abolished, excluding Attica settlements.
The measure affects approximately 1 million properties in 12,720 settlements nationwide, with total savings of €225 million for owners in two annual installments (€75 million in 2026 and €150 million in 2027).
The abolition directly connects to decentralization and addressing the housing problem. It makes living in small communities more attractive and provides economic relief to residents, indirectly encouraging decongestion of major urban centers.
5. Social contribution for modern housing
A new social contribution framework is launched regarding utilization of public real estate for constructing modern social housing, aimed at ensuring social rental for vulnerable groups. The first properties have been selected and the measure aims to address the long-term structural problem of housing the most vulnerable social groups.
These measures encourage construction activity and upgrading of existing building stock, contributing to increased supply of more affordable housing.
Additionally, other measures extending into 2026 instead of expiring move in the same direction.
Specifically:
6. The income tax reduction for building upgrade expenses is extended through 2026.
7. VAT suspension on new constructions is extended through the end of 2026.
8. The restriction on new short-term rentals in Athens’s three municipal districts is extended through 2026. The extension aims to return properties to long-term rental, preventing conversion of residences to tourist accommodations in areas with severe housing problems.
