POMIDA (the Panhellenic Federation of Property Owners) has welcomed the Ministry of Finance’s decision to adopt a key part of its proposals regarding the three-year tax exemption for vacant homes offered for long-term rental. The measure, announced by Finance Minister Kyriakos Pierrakakis, is seen as a positive step.
However, POMIDA underlines that several restrictions and exceptions remain, limiting the full potential of the scheme for society and the housing market.
The core regulation of tax-exemption
The exemption applies to:
Homes left vacant for at least three years, as well as those previously used for short-term rentals.
Homes up to 120 sq.m., with an additional 20 sq.m. allowed per child beyond the second for the tenant’s family.
Long-term leases of three years for primary residence. If the tenant leaves early, the exemption continues provided a new three-year lease is signed within three months.
Exceptionally, six-month leases for public sector employees (teachers, military staff, healthcare workers, etc.), with the option of renewal without losing the exemption.
The scheme applies to leases signed until December 31, 2026.
Positive aspects
POMIDA acknowledges that the latest changes make the scheme more practical than the initial version. Notably, the inclusion of homes used for short-term rentals and the provision for public sector employees on frequent transfers are considered important improvements. These adjustments broaden the pool of properties returning to the long-term rental market, creating opportunities for both landlords and tenants.
The challenges
Despite the improvements, POMIDA highlights several issues:
The three-year vacancy requirement excludes many currently unused homes.
Not all categories of housing left outside the market are covered.
Seasonal private-sector workers (e.g., in tourism or hospitality) are not included, despite facing similar needs as public employees.
The exemption is linked to the tenant, not the property, making landlords dependent on tenant compliance.
The three-month period to re-let a property is too short; POMIDA calls for a six-month grace period.
POMIDA’s stance
The Federation stresses that the measure moves in the right direction, as it incentivizes owners to bring vacant homes back to the long-term rental market, potentially easing housing pressures. Yet, it insists that the restrictions narrow its impact and discourage owners who could immediately contribute solutions.
POMIDA urges the government to revisit these points so that the regulation becomes a true housing policy tool rather than a partial fix.
