In a surprise last-minute change, the Tourism Ministry’s bill, which was recently passed by Parliament, introduces significant modifications to the regulatory framework governing short-term rentals. This amendment saves approximately 20,000 properties from being excluded, sparking intense discussions in the real estate and tourism sectors.
What did the initial provision stipulate, and how has it changed?
Initially, the bill stipulated that properties available for short-term rentals must exclusively be primary residences. However, this provision was deemed unconstitutional by property owners’ representatives, and its impact on the market was considered catastrophic. In the final text, the word “residence” was deleted, allowing other types of spaces – such as commercial or industrial properties that have changed use after 2011 – to remain on the market. This change primarily affects urban centers, where the majority of these accommodations are located, and protects approximately 18%-20% of all short-term rental properties.
The new specifications introduced
Despite the change, the bill introduces a strict framework of specifications for short-term rental properties. The requirements include:
- Natural light, ventilation, and air conditioning: Properties must have these basic infrastructures.
- Civil liability insurance: Insurance coverage is required for any damages or accidents.
- Safety equipment: Fire extinguishers, smoke detectors, leakage relays or residual current devices, and escape routes are required.
- Sanitary requirements: A certificate of pest control and disinfection is required, as well as a first-aid kit.
- Electrician’s declaration: For certifying the safety of electrical installations. (You can check the validity of your electrician’s certificate here: https://apps.deddie.gr/LicensedElectricianCertification/).
These specifications will be effective from October 1, 2025, allowing owners to adapt to the requirements.
Basements and semi-basements excluded from the market
Despite the overall flexibility, basements and semi-basements that do not meet the specifications or have not been regularized are excluded from short-term rentals. This exclusion aims to enhance the quality of accommodations available in the tourism market.
Inspections and penalties: A strict enforcement framework
The bill provides for a strict system of inspections and penalties. The Ministry of Tourism, in cooperation with the Independent Authority for Public Revenue (AADE), will conduct on-site inspections of properties. In case of non-compliance with the specifications, the following penalties apply:
- A fine of €5,000 for managers who refuse entry to inspectors or do not meet the requirements.
- If a violation is repeated within one year, the fine is doubled, and for a third violation, it is quadrupled, reaching €20,000.
Reactions and prospects
The change in the law was met with relief by representatives of the Short-Term Rental Property Companies Association (STAMA), as it prevents the mass exit of thousands of properties from the market. As the Association notes in its announcement: “The lifting of the restriction on primary residence is a milestone for short-term rentals, saving millions of euros in investments and ensuring new development opportunities, as short-term rentals contribute millions of euros annually to the Greek economy and strengthen local communities through travel expenses and new job creation. Large investments that have already been made and will be made in the future have been saved, while at the same time, many spaces will retain the right to find a new use and not be left abandoned and forgotten over time.”
Learn more about what applies to short-term rental properties at the ShortStay Conference, which will be held on February 14 & 15, 2025, at the Ancient Olive Grove Conference Center.