New short-term rental restrictions are included in the six-measure housing package announced by Prime Minister Kyriakos Mitsotakis from the floor of the Parliament, during the 2026 budget discussion. These interventions primarily aim to increase housing supply and contain housing costs, with a focus on areas under the greatest pressure.
Regarding short-term rentals, the government is extending existing regulations to the center of Thessaloniki, effectively broadening the zones where restrictions on new Airbnb-type accommodations apply. Additionally, a new, stricter provision is introduced for Athens and Thessaloniki: in areas where short-term rentals are already prohibited, any property that is transferred will be automatically removed from the Short-Term Rental Property Registry.
This rule ensures that the right to operate as a short-term rental does not “follow” the property to the new owner, supporting efforts to return properties to long-term rental use.
The 6 housing measures
Beyond short-term rentals, the package includes:
A comprehensive home renovation program totaling €400 million. The program provides subsidies of up to 90% of renovation costs, with a maximum of €36,000 per property, targeting primarily old and vacant homes. The income limit is set at €35,000 for couples, with an additional €5,000 per child, ensuring that support reaches households with genuine housing needs.
Special provisions for public sector workers outside major urban centers. Approximately 50,000 teachers, nurses, and doctors working outside Attica and Thessaloniki will receive reimbursement for two months’ rent annually, regardless of income. This measure aims to address acute housing shortages in tourist, island, and mountainous areas, where finding accommodation for permanent workers is particularly difficult.
Local plans for upgrading municipal and state buildings in mountainous and island regions, converting them into housing for public employees. Utilizing existing infrastructure is intended to provide a faster solution without the lengthy processes of new construction.
Incentives for private investment in affordable housing. Construction companies will be able to develop new apartments or convert existing buildings into rental properties exclusively for at least ten years. Rents will be tax-deductible, and the maximum permissible rent will be centrally set, introducing a more formal framework for “affordable housing.”
Urban planning regulations by the Ministry of Environment and Energy to accelerate the conversion of existing properties into residences. Abandoned or unfinished buildings can be included in private investment schemes with tax deduction incentives, aiming for faster utilization.
Overall, the government plan combines short-term rental restrictions with incentives to increase housing supply, seeking to balance a market under intense pressure in recent years. The effectiveness of these measures will depend on the speed of implementation and the response of private owners and investors.
