The government appears to be moving once again toward tightening the regulatory framework for short-term rentals, according to sources within the industry. Specifically, an extension of the freeze on issuing new property registration numbers (AMAs) in Athens’ three central districts is reportedly under consideration for the year 2026, while similar restrictions may also be introduced in Thessaloniki and Santorini.
The measure, initially implemented for 2025 in an effort to curb the high concentration of short-term rentals in central Athens, is believed to have been deemed effective by the Ministry of Tourism. According to the same sources, Tourism Minister Olga Kefalogianni is said to have convinced Prime Minister Kyriakos Mitsotakis to move forward with an extension, aiming to maintain control over the rising pressure on rental prices and the broader transformation of urban neighborhoods.
At the same time, hospitality sector stakeholders report that the government is also considering the introduction of a cap on the number of rental days allowed per property — specifically, a 120-day annual limit. This proposal is being discussed in conjunction with the current tax regime, which already differentiates between “individuals” and “businesses,” and echoes ongoing conversations at the European Union level regarding regulatory proposals for rental platforms.
Extension of restrictions in Thessaloniki and Santorini
Thessaloniki and Santorini appear to be the next likely candidates for the implementation of similar restrictions. In Thessaloniki, significant pressure is already being observed in the long-term rental market, particularly in areas surrounding the historic center and the university campus. Local stakeholders point out that short-term rentals have reduced housing availability for students and permanent residents, without necessarily generating the level of tourism revenue seen in other parts of the country.
In Santorini, explosive tourism growth combined with limited housing availability has created serious social tensions, as a large proportion of tourism workers are unable to secure accommodation on the island. The prospect of restrictions on short-term rentals is viewed positively by local authorities, who are calling for measures to decongest residential areas and rationalize housing use.
Market concern and anticipation
Although no official announcement has been made yet, the discussions surrounding these scenarios have already stirred concern among property owners and rental managers, who fear a new wave of disruption in an already uncertain regulatory environment. In particular, the proposal to introduce a 120-day annual cap is seen as particularly burdensome for small landlords who depend on peak-season revenues to cover the costs and viability of their properties.
On the other hand, many tourism professionals welcome the prospect of addressing oversupply and restoring a more balanced relationship between short-term rentals and the traditional hotel sector.
Searching for a new regulatory framework
Should the extension of the ban on new AMAs in the three central districts of Athens be confirmed, it is expected to be accompanied by tighter enforcement and possibly new operational standards for short-term rental businesses. These developments would align with the European Commission’s proposals regarding data collection and sharing obligations for rental platforms.
Many stakeholders are calling for the development of a comprehensive, long-term strategy for the sector, in order to avoid persistent uncertainty and the deterrence of new investments. “The market cannot operate under rolling two-month or one-year extensions without a stable legal framework,” commented one hospitality industry executive. “We need strategy, not fragmented interventions.”
At the same time, short-term rentals continue to represent a vital source of income for thousands of small-scale landlords, who already face growing tax burdens and operational complexities. Many are now waiting to see whether the proposed measures will also include incentives for compliance, simplification of administrative procedures, or targeted exemptions for areas with low tourism density.
