Greece’s Council of State has ruled that renting properties through Airbnb in the historic Plaka district is lawful — a landmark decision for the future of short-term rentals in the country. According to the court, leasing a property via a digital platform does not automatically mean that the property has been converted into a tourist accommodation. Determining the actual use of each property falls under the authority of the municipal urban planning department, which must assess every reported case individually.
The ruling follows 16 appeals filed by the Hellenic Society for the Environment and Cultural Heritage (ELLET), concerning the conversion of entire buildings into Airbnb properties in Plaka. ELLET had requested the closure of these accommodations, arguing that such conversions violated the area’s residential protection status. However, the City of Athens’ Urban Planning Department rejected the request, noting that neither urban planning nor tourism legislation classifies short-term rental homes as tourist accommodations by default.
The reasoning of the Council on short-term rentals
The Council’s Fifth Chamber, in decisions such as 1907/2025, clarified that short-term leases are not automatically subject to tourism regulations. The nature of a property’s use must be determined by actual facts: an Airbnb rental is not automatically a tourist accommodation, just as a hotel remains one even if it does not use an online platform.
The court also stressed that a property can only be considered as used for tourism purposes when it meets the criteria defined by tourism legislation. This means that the competent municipal planning authority—such as the City of Athens’ Urban Planning Service—has the responsibility to assess each case, and if a violation is found, to impose sanctions such as sealing the property.
A “window” for guesthouses in Plaka
Of particular interest is the court’s clarification regarding Plaka: the area’s protection decree excludes guesthouses from the general restrictions. Therefore, if a property’s use resembles that of a guesthouse, it can be deemed lawful, even when operated through Airbnb. This effectively opens a “window” in favor of short-term rentals, especially in areas with strict residential protection rules.
Next steps
The Council of State postponed its final ruling for six months, giving the Ministry of Tourism time to submit its official position. Meanwhile, the City of Athens must inspect the properties mentioned in the appeals. The next hearing has been set for May 6, 2026.
This is seen as a balanced decision acknowledging arguments from both sides: Airbnb properties are not automatically classified as tourist uses, though the court does not rule out that some may, in practice, operate as tourist accommodations.
