Greece is entering a new era of stricter regulations for short-term rentals, as the government prepares changes to the Airbnb framework against the backdrop of a deepening housing crisis and pressure from the European Commission. The debate over market restrictions has now become urgent, with the finance ministry considering measures already applied in major European cities such as Paris, Vienna, and Berlin.
The housing crisis and Greece’s vulnerability
The Housing in the European Union report (ECOFIN 2025) ranks Greece among the most vulnerable EU countries. According to the European Commission, housing prices in the country are up to 20% above economic fundamentals, while rents have risen by more than 45% since 2018.
Meanwhile, the Bank of Greece confirms that the market is operating under an artificial shortage. Thousands of homes have been withdrawn from the long-term rental market, either for short-term rental purposes or through acquisitions by investment funds, servicers, and foreign buyers.
What’s being planned: Changes on the table
The government appears to be crystallizing a more targeted strategy for short-term rentals, discarding the idea of broad interventions and leaving aside the solution of imposing a day cap, as applied in other European countries. Instead, a model of regulations is gradually taking shape, reminiscent of European municipal management practices—but in Greece, decisions will be made centrally, based on official data rather than local recommendations alone.
A central tool in this new approach is the Hellenic Revenue Authority (AADE) registry, which for the first time provides an accurate picture of the actual number of short-term rental properties. Of the country’s roughly 10 million properties, an estimated 100,000 are used for short-term rentals, most of them privately owned, with the average annual rental duration not exceeding 90 days. This measured, realistic view now guides the design of regulatory interventions.
Within this framework, the idea of activating the “frozen” 90-day rule has been definitively abandoned, as data do not justify such a blanket measure. Instead, the government is leaning toward temporary, locally tailored restrictions in areas where short-term rentals exceed specific thresholds relative to long-term rentals. This model has already been piloted in central Athens, where a freeze on new permits has been imposed, and its expansion is now under serious consideration for additional districts in the capital, the southern suburbs, parts of Thessaloniki, and, in a second phase, islands with limited housing stock.
The math that will determine new Property Registration Numbers
The logic is simple: in each area, the ratio of short-term to long-term rentals will be calculated—a “fraction” derived from the highly detailed AADE registry, down to the postal code level. When this ratio tilts against the long-term market, a temporary freeze on issuing new Property Registry Numbers (AMA) will be triggered. This dynamic process will be reassessed annually based on the latest supply, demand, and pricing data.
At the same time, stricter tax obligations and cross-checking procedures are considered key tools for preventing further expansion of the sector. Recent moves in this area appear to be yielding results: AirDNA data show a slowdown in the rate of new listings. As a result, the next phase of regulation will rely more on selective, geographically targeted interventions rather than broad, blanket measures that would unfairly affect the entire market.
Why Airbnb is targeted – The “Greek particularity”
Unlike other countries, Greece’s housing crisis is not driven by high levels of debt. Instead, it stems from underproduction of new housing and massive absorption of existing stock by funds, investors, servicers, Golden Visa buyers, and short-term rentals.
The European Commission places Greece in the “passive group” of countries, citing inadequate housing policy tools, slow permitting processes, and insufficient new construction. The Commission notes that countries that managed to contain housing prices rapidly increased housing supply, developed 20%-30% social housing, imposed clear limits on short-term rentals, and simplified permitting and spatial planning. Conversely, countries that focused only on boosting demand (e.g., rental subsidies) without increasing supply experienced further price increases.
The stakes: A market under social and political pressure
Rising prices, exclusion of young people from homeownership, declining homeownership rates, and rent pressures have made housing the top social challenge of the coming decade. Short-term rentals are not the root cause, but they have exacerbated an already constrained market—hence their centrality in the regulatory agenda.
What will determine the final decisions
According to government sources, the measures will be based on three indicators:
Rent pressure by municipality
Ratio of available homes to population
Percentage of apartments in short-term rental
In areas where these indicators exceed European thresholds, regulations will be stricter.
Greece no longer has the luxury of waiting. European experience shows that without structural increases in housing supply alongside clear short-term rental regulations, the housing crisis will continue to worsen.
