The Greek government plans to extend into 2027 a tax incentive offering landlords a three-year income tax exemption for bringing vacant properties into the long-term rental market.
The proposal is included in a broader tax and spending bill announced by the Finance Ministry on October 18, aimed partly at addressing the country’s housing shortage.
The legislation remains under public consultation until November 1, with parliamentary approval expected to be sought later in November.
Tax Exemption Would Remain at Three Years
Under the proposal, property owners would have until the end of 2027 to qualify for the existing incentive.
The measure would extend the application deadline rather than increase the duration of the tax exemption, which remains 36 months.
Under current legislation, qualifying rental agreements must be signed by December 31, 2026.
The exemption applies to rental income from eligible properties and begins after the month in which the lease is signed.
The Finance Ministry has not yet published all the eligibility conditions that would apply under the proposed extension.
Eligibility Requirements for Property Owners
Under the existing framework, the incentive applies to individual landlords who rent qualifying residential properties, generally under agreements lasting at least three years.
Homes must normally be no larger than 120 square meters, although the limit increases by 20 square meters for each dependent child beyond the tenant’s second.
Eligible properties include previously vacant homes and residences converted from short-term to long-term rentals, provided they meet the required conditions.
Property owners must also comply with restrictions throughout the exemption period.
Returning a qualifying property to short-term rental use can result in the retroactive loss of the tax benefit.
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