Greece to soon enforce new and tighter rules on short-term rentals

In recent years, Greece has experienced a significant surge in tourism, with the number of visitors reaching record highs. While this influx has bolstered the economy, it has also led to challenges such as overtourism, housing shortages, and concerns over safety and quality in the accommodation sector. In response, the Greek government has introduced comprehensive regulations targeting short-term rentals, aiming to protect both tourists and local communities.

The Rise of Short-Term Rentals in Greece

The advent of platforms like Airbnb has revolutionized the hospitality industry worldwide, and Greece is no exception. The flexibility and affordability of short-term rentals have attracted millions of tourists seeking authentic experiences in local neighborhoods. However, this rapid growth has also led to unintended consequences, including the transformation of residential areas into tourist hotspots and a surge in property prices, making housing less affordable for locals.

New Regulatory Framework Effective October 1, 2025

To address these challenges, the Greek Parliament has enacted legislation that will come into effect on October 1, 2025. This new framework introduces stringent standards for short-term rental properties, focusing on safety, quality, and the preservation of local communities.

Key Provisions of the Legislation

Property Standards and Safety Measures

All short-term rental properties must adhere to specific safety and quality standards, including:

Natural Light and Ventilation: Properties are required to have adequate natural lighting and ventilation to ensure a comfortable environment for guests.
Fire Safety Equipment: Installation of smoke detectors, fire extinguishers, and clearly marked escape routes is mandatory.
Electrical Safety Certification: A licensed electrician must certify the property’s electrical systems to prevent hazards.
Civil Liability Insurance: Owners must obtain insurance to cover potential accidents or damages during a guest’s stay.
Pest Control Certification: Regular pest control measures are required to maintain hygiene standards.
First Aid Kit and Emergency Contacts: Properties must be equipped with a first aid kit and provide guests with emergency contact information.

These measures aim to enhance guest safety and ensure a high-quality experience.

2. Restrictions on Property Types

The legislation prohibits the use of certain spaces as short-term rentals:

Basements and Semi-Basements: Properties lacking natural light and ventilation, such as basements and semi-basements, are banned from being listed as short-term rentals.
Repurposed Industrial Spaces: While the original draft restricted the use of former warehouses and industrial spaces, amendments have allowed these properties to continue operating as short-term rentals, provided they meet the new standards.

3. Enhanced Inspections and Penalties

To ensure compliance, the government has established a rigorous inspection regime:

Joint Inspection Teams: Teams from the Tourism Ministry and the Independent Public Revenue Authority (AADE) will conduct property inspections.
Owner Cooperation: Property owners are obligated to grant inspectors access and provide all necessary certifications.
Fines for Non-Compliance: Penalties for violations range from €5,000 to €20,000. Repeat offenders may face doubled or quadrupled fines, depending on the severity and recurrence of the infractions.

4. Taxation and Economic Measures

In addition to safety and quality regulations, the government has introduced financial measures:

Increased Taxes: Starting in 2025, the daily tax on short-term rentals during peak tourist season (April to October) will rise from €1.50 to €8.00. In the off-season, the tax will increase from €0.50 to €2.00. Hotel accommodations will also see tax hikes, with daily charges up to €15, depending on the hotel’s category.
Cruise Ship Levies: A fee of €20 will be imposed on cruise ship passengers disembarking at popular islands like Santorini and Mykonos, aiming to manage the environmental and infrastructural impact of mass tourism.

Impact on Local Communities and Tourism

The proliferation of short-term rentals has significantly impacted local communities:

Housing Affordability: The conversion of residential properties into tourist accommodations has reduced the availability of long-term housing, driving up rents and property prices, and making it difficult for locals to find affordable homes.
Community Displacement: Traditional neighborhoods have seen an exodus of long-term residents, altering the social fabric and diminishing the sense of community.
Infrastructure Strain: The influx of tourists in areas not designed to handle large crowds has put pressure on local infrastructure, leading to issues like increased waste, noise, and wear on public services.

By implementing these regulations, the government aims to balance the benefits of tourism with the needs of local residents, ensuring sustainable development and the preservation of Greece’s cultural heritage.

Reactions from Stakeholders

The new regulations have elicited mixed responses:

Tourism Industry Leaders: Organizations such as the Hellenic Chamber of Hotels and the Greek Tourism Confederation (SETE) have expressed support, viewing the measures as necessary to uphold service quality and protect the country’s tourism reputation.
Property Owners and Hosts: Many hosts are concerned about the financial and logistical challenges of meeting the new standards, fearing potential loss of income and increased operational costs.
Local Residents: Communities affected by overtourism have largely welcomed the regulations, hoping they will restore housing availability and improve quality of life.

Looking Ahead

As the October 2025 implementation date approaches, property owners are encouraged to take proactive steps to comply with the new regulations that will help the preservation of local communities while also promoting sustainable development.