What Changes for Property Owners in Greece in 2027?
Five key developments in taxation, rentals and the property market will affect property owners in Greece in 2027. Some are already in force. Others are being extended under a draft bill from the Ministry of National Economy and Finance, which entered public consultation in October 2026. One introduces an entirely new measure.
Throughout this article, we distinguish between what is already law and what remains a proposal.
At a Glance
| Development | What it provides | Date | Status (5 Nov 2026) |
|---|---|---|---|
| The 36 months | 0% tax on rent for 3 years, vacant or Airbnb flats let long-term | Leases by 31/12/2026, proposed 31/12/2027 | In force, extension proposed |
| Capital gains tax 15% | Tax on property sales suspended | Until 31/12/2026, proposed 31/12/2027 | Draft bill |
| Renovation deduction | Up to €16,000 over 5 years (€3,200 a year) | Spending 2025–26, proposed 2027 | In force, extension proposed |
| Short-term rentals | No new registrations in central Athens and Thessaloniki's 1st district. AMA cancelled on sale or gift | Until 31/12/2026, may be extended | In force |
| Rent by bank transfer | All rent through a bank account | From 1/7/2027 (AADE) | In force, new date |
| Transfer tax 15% | Certain home buyers tax-resident outside the EU/EEA, up from 3% | From 1/7/2027 | Draft bill |
1. The 36-Month Incentive: 0% Rental Income Tax
Property owners who bring a previously vacant apartment or short-term rental property back onto the long-term rental market may qualify for a full income tax exemption on rental earnings for the first 36 months.
The measure already applies to eligible rental agreements signed by 31 December 2026. The draft legislation currently under consideration proposes extending that deadline to 31 December 2027.
Key eligibility requirements
- The property must generally be no larger than 120 sq m, with an additional 20 sq m allowed for each dependent child of the tenant beyond the second.
- The property must previously have been vacant or used exclusively for short-term rentals, as demonstrated by the relevant tax declarations.
- The lease must generally have a minimum duration of three years. A special provision allows a minimum of six consecutive months for certain healthcare professionals, teachers and uniformed public-sector personnel.
- Rental payments must comply with the legally prescribed payment requirements.
What property owners should watch: If the lease ends before the three-year period is completed, the exemption may be lost and previously exempt rental income could become taxable retroactively.
However, the legislation provides for certain circumstances in which the benefit may continue following a new qualifying long-term lease.
Before signing a rental agreement, owners should confirm with their tax adviser that both the property and the proposed tenancy satisfy the applicable requirements.
2. The 15% Capital Gains Tax Remains Suspended
Greece's 15% capital gains tax on profits from property sales, established under Article 41 of the Income Tax Code, has never actually been implemented.
Its suspension currently runs until 31 December 2026.
The Ministry of National Economy and Finance has proposed a further extension until 31 December 2027.
The same draft bill also proposes extending the suspension of VAT on newly built properties until the end of 2027.
While the VAT suspension applies, qualifying sales of newly built properties are subject to the standard 3% property transfer tax instead of 24% VAT.
What this means in practice
Until the proposed legislation is formally adopted, 31 December 2026 remains the confirmed expiry date for the existing suspension.
For owners considering a sale, the date on which the sale contract is executed may therefore have important tax implications.
Monitoring the legislative process is essential before making decisions based on the proposed extension.
3. Up to €16,000 in Tax Relief for Property Renovations
Property owners undertaking eligible energy-efficiency, functional or aesthetic improvements may qualify for income tax reductions of up to €16,000.
The benefit is distributed equally over five years, with a maximum annual reduction of €3,200.
The scheme currently covers eligible expenditure incurred in 2025 and 2026. The draft legislation proposes extending the measure to expenses incurred in 2027.
The conditions that matter
- The reduction applies to income tax actually owed. If an owner's annual tax liability is lower than the eligible reduction, the unused amount cannot be carried forward to the following year.
- Invoices and electronic payments are essential. Cash payments do not qualify.
- Materials are subject to a limit. Eligible material expenses may not exceed one-third of the qualifying labour costs.
- Double funding is not permitted. Expenditure already covered by another subsidy programme cannot be claimed again under this scheme.
What this means in practice
A qualifying €16,000 renovation, properly invoiced and paid electronically, could generate up to €16,000 in income tax reductions over five years, provided the owner has sufficient tax liability.
The same renovation paid entirely in cash would not qualify.
The way renovation expenses are documented and paid is therefore just as important as the work itself.
4. Short-Term Rentals: The Registration Does Not Automatically Transfer With the Property
In designated areas of Athens and Thessaloniki, temporary restrictions prevent the issuance of new Short-Term Rental Property Registry Numbers (AMA).
According to Greece's official Housing Policy Portal, the restrictions apply to:
- Athens: The 1st, 2nd and 3rd Municipal Communities of the Municipality of Athens until 31 December 2026.
- Thessaloniki: The 1st Municipal Community of the Municipality of Thessaloniki from 1 July until 31 December 2026.
- Potential extensions: Both restrictions may be extended through a subsequent regulatory decision.
What buyers and sellers need to know
When a property located within a restricted area is transferred during the owner's lifetime, including through a sale or parental gift, its existing short-term rental registration is removed from the registry.
The new owner cannot obtain a replacement registration while the restriction remains in effect.
In other words, an existing short-term rental registration does not automatically pass to the buyer along with the property.
Inheritance is not expressly addressed by this provision and requires individual legal assessment.
Significant penalties for violations
Operating a short-term rental in a restricted area without a valid registration can result in substantial fines:
- First violation: 50% of the relevant rental income, with a minimum fine of €20,000.
- Repeated violation within the same tax year: A fine equivalent to the total rental income, with a minimum of €40,000.
The €5,000 penalties frequently mentioned in media reports concern violations of accommodation standards, rather than the geographical registration restrictions.
What this means in practice
Buyers considering properties in central Athens or Thessaloniki should assess potential returns based on long-term rental income rather than assuming that an existing Airbnb operation can continue.
Similarly, owners selling an active short-term rental property in a restricted area should recognise that its operating registration may not transfer to the purchaser.
That distinction can materially affect the property's investment value and asking price.
5. 1 July 2027: One Date, Two Important Changes
Two significant measures are scheduled or proposed for 1 July 2027, affecting rental payments and certain international property buyers.
Rental payments must be made through banks
Greece's mandatory requirement for rental payments to be processed through bank accounts was originally expected to take effect in 2026.
The Independent Authority for Public Revenue (AADE) has postponed implementation until 1 July 2027.
From that date, failure to comply with the banking requirement may have consequences for both landlords and tenants:
- Landlords receiving rent in cash may lose eligible expense deductions.
- Residential tenants may lose entitlement to the annual rental refund.
- Business tenants may be unable to deduct rental payments as business expenses.
Separately, eligible tenants may receive an annual rental refund of up to €800, plus up to €50 for each dependent child, subject to income and property ownership criteria.
The regular payment is scheduled by the end of November.
Proposed 15% transfer tax for certain non-EU/EEA buyers
The draft legislation also proposes increasing Greece's residential property transfer tax from 3% to 15% for certain individual buyers whose tax residence is outside the European Union and European Economic Area.
Including the municipal surcharge, the proposed effective rate would be 15.45%.
The measure is proposed to take effect on 1 July 2027.
Exemptions are envisaged for certain categories, including members of the Greek diaspora and long-term residents.
Importantly, this measure has not yet been enacted. Its final provisions and scope may change during the legislative process.
What this means in practice
For owners selling residential property to buyers potentially covered by the proposed measure, the timing of the transaction could make a significant difference.
The proposed increase represents a rise of 12 percentage points in the basic transfer tax rate.
This could influence acquisition costs, buyer demand, negotiations and transaction timing.
Sellers and prospective purchasers should verify the final legislation before relying on any anticipated tax treatment.
The Market Signal: Property Prices Are Still Rising, but More Slowly
Alongside the regulatory developments, Greece's property market continues to record price growth, although the pace has moderated.
According to provisional figures from the Bank of Greece, apartment prices increased by 5.5% in the second quarter of 2026 compared with the same quarter in 2025.
For comparison, the average annual increase recorded during 2025 was 8.3%.
Price growth therefore remains positive, but the rate of increase has slowed.
Apartment Price Developments in Greece
| Category | Q2 2026, year on year | 2025 average |
|---|---|---|
| All apartments | +5.5% | +8.3% |
| New apartments (up to 5 years) | +6.2% | +7.8% |
| Older apartments | +5.0% | +8.6% |
| Athens | +5.0% | +6.6% |
| Thessaloniki | +4.7% | +9.7% |
| Other large cities | +5.4% | +10.3% |
| Other areas | +7.1% | +9.6% |
Source: Bank of Greece. Q2 2026 figures represent year-on-year changes; 2025 figures represent average annual growth.
What this means in practice
The slowdown is particularly evident in Thessaloniki and other major Greek cities, where annual price growth has moderated substantially compared with 2025.
Athens, meanwhile, continues to record growth closer to its previous annual pace.
For property owners considering a sale, this has a practical implication: pricing decisions based solely on the rapid appreciation recorded in 2024 and 2025 may no longer reflect current market conditions.
Accurate pricing increasingly requires a detailed understanding of local demand, comparable transactions and the characteristics of individual properties.
The Real Question for Property Owners
The important question is not simply what will change in 2027.
It is which measures already apply to your property, which remain subject to legislative approval, and what decisions should be considered first.
For different owners, the priorities will vary:
- Own a vacant apartment or former Airbnb property? The 36-month rental income tax exemption may be worth evaluating before entering a new long-term lease.
- Considering selling? The capital gains tax suspension and the proposed transfer tax increase for certain international buyers may influence transaction timing.
- Looking to buy in central Athens or Thessaloniki? Assess investment returns without assuming that short-term rental operations will be permitted.
- Planning a renovation? Proper invoices and electronic payments can make a substantial difference to the available tax benefits.
Not every legislative change requires immediate action. But understanding which measures apply, which remain proposals and how they interact with market conditions can make a meaningful difference to a property decision.
At Delfi Properties, we combine local market knowledge with data-driven property intelligence to help owners, buyers and investors make informed decisions.
Working alongside your tax and legal advisers, our Athens team can help assess the property implications of regulatory changes within the context of your wider objectives.
Contact Delfi Properties Athens: delfiproperties.gr
Sources
- Naftemporiki, 26 October 2026 — Property Tax Changes Coming in 2027
- Greek Housing Policy Portal — Temporary Restrictions on Short-Term Rentals
- Greek Housing Policy Portal — Rental Income Tax Exemption for Conversion to Long-Term Leasing
- ERTnews — AADE Postpones Mandatory Bank Rental Payments Until 1 July 2027
- Capital.gr — Proposed Extension of VAT and Capital Gains Tax Suspensions
- Naftemporiki — Property Tax and Rental Changes
- Hellas Journal — Bank of Greece Apartment Price Data, Q2 2026
Disclaimer: This article is intended for general informational purposes and reflects the information available as of 5 November 2026. It does not constitute legal, tax or financial advice. Measures identified as proposed legislation have not yet been enacted and may be amended. Property owners and prospective purchasers should consult qualified tax and legal advisers before making decisions.