Greece’s STR Market Gets a Major Makeover

If you're an Airbnb host or property investor eyeing the Greek market, brace yourself. Starting October 1, 2025, Greece is rolling out sweeping reforms for short-term rentals (STRs). These changes aim to enhance safety, curb over-tourism, and ensure fair taxation. While the picturesque landscapes remain, the regulatory terrain is shifting beneath your feet. Let’s delve into the upcoming regulations, tax implications, and compliance requirements to help you adapt and thrive in this evolving market.

The Regulatory Shift

The key changes that will be unveiled in the upcoming regulation includes;

1. Stricter Property Standards: Greece is setting the bar higher for holiday apartments with the following rules;

• Primary Use Requirement: Properties must serve as primary residences with adequate natural light, ventilation, and air conditioning. Basements and semi-basements are off-limits unless they meet stringent criteria .
  
  
• Safety Measures: Mandatory installations include smoke detectors, fire extinguishers, emergency exit signs, and circuit breakers. Additionally, properties must have pest control certificates, first aid kits, and an emergency contact guide .
  
  
• Liability Insurance: Hosts are required to secure civil liability insurance to cover potential damages or accidents during a guest's stay .
  
  

2. Enhanced Oversight and Penalties: Compliance is mandatory, with strict penalties and enforcement measures including;

• Inspections: Joint teams from the Ministry of Tourism and the Independent Authority for Public Revenue (AADE) will conduct property inspections. Hosts will receive at least 10 days' notice to prepare necessary documentation .
  
  
• Fines: Non-compliance can result in fines starting at €5,000, doubling for repeat offenses, and reaching up to €20,000 for severe violations .
  
  

3. Taxation Overhaul: The financial landscape is changing as:

• Climate Crisis Resilience Tax: Replacing the previous accommodation tax, this levy applies to all types of accommodations, including STRs. Rates vary by season:
  
  
  
  • High Season (April–October): €8 per night for STRs.
    
    
  • Low Season (November–March): €2 per night for STRs .
    
    
• Income Tax Rates:
  
  
  
  • 15% for income up to €12,000.
    
    
  • 35% for income between €12,001 and €35,000.
    
    
  • 45% for income over €35,000 .
    
    

4. Operational Restrictions: To balance tourism and local housing needs, the following measures are put in place;

• Property Limits: Owners can list a maximum of two properties for short-term rental.
  
  
• Duration Caps: Rentals are limited to 90 days per year per property, or 60 days on islands with fewer than 10,000 residents .
  
  

Impact on Hosts and Investors: These reforms present both challenges and opportunities:

• Increased Compliance Costs: Upgrading properties to meet new standards and securing necessary certifications will require investment.
  
  
• Operational Adjustments: Hosts may need to modify booking calendars to adhere to duration caps and consider transitioning some properties to long-term rentals.
  
  
• Competitive Advantage: Those who adapt swiftly and maintain compliance can position themselves as premium, trustworthy options in the market.
  
  

Compliance Checklist: To navigate the new regulations, ensure that you put the following in place;

• Property Assessment: Ensure your property meets the primary use criteria and safety standards.
  
  
• Documentation: Obtain necessary certifications, including electrical safety and pest control, and secure liability insurance.
  
  
• Registration: Update your property details with the AADE and ensure accurate tax reporting.
  
  
• Stay Informed: Regularly consult official channels for updates and consider professional advice to remain compliant.
  
  

Embrace the Change with Confidence

Greece's regulatory overhaul is a call to elevate the quality and safety of short-term rentals. While the path ahead requires diligence, it also offers a chance to stand out in a more structured and sustainable market.

Need Assistance?

At Lodge Compliance, we specialize in guiding property owners through regulatory landscapes. Our services include:

• STR permit applications.
  
  
• Tax registration and filing.
  
  
• Compliance consultations.
  
  

Don't let these changes catch you off guard. Contact us today to ensure your Greek rental property is fully compliant and poised for success.