Greece is introducing significant changes to its short-term rental market through a new bill proposed by the Ministry of Social Cohesion and Family, which remains under public consultation until July 3. While the legislation does not impose new restrictions on existing Airbnb properties, it introduces a new rule targeting homes created through the conversion of existing buildings. These newly converted residential properties will not be allowed to operate as short-term rentals for five years following the completion of their conversion.
The measure forms part of the government’s broader strategy to address the country’s housing shortage, aiming to ensure that converted buildings increase the supply of long-term housing rather than becoming tourist accommodations.
Which properties are affected?
The five-year restriction does not apply to properties already operating as Airbnb rentals or other existing short-term accommodation listings. Instead, it applies exclusively to residential units created under the new building conversion framework.
For the first time, the proposed legislation allows the conversion of older commercial, industrial, office, and other legally existing buildings into residential properties, even in areas where current zoning regulations do not permit residential use. The regulation also covers buildings that have been legalized under Greece’s unauthorized construction regularization laws, provided the legalization process has been fully completed.
By prohibiting short-term rentals for five years, the government aims to ensure that these newly created homes enter the long-term rental market instead of being immediately absorbed by the tourism sector.
Expanding housing supply
Expanding housing supplyThe reform is part of a broader government initiative to increase the country’s housing stock without requiring new construction. Its objective is to unlock thousands of underutilized buildings that have remained vacant due to planning and zoning restrictions.
Allowing changes of use is expected to create a substantial number of new residential units both inside and outside urban planning zones. The five-year ban on short-term rentals is considered a key mechanism to ensure that these homes become available to permanent residents rather than the tourism industry.
Strict conditions for building conversions
The proposed legislation introduces several safeguards governing changes of use. Each property may undergo a change of use only once, and the conversion applies exclusively to the existing legal building or part of it. No increase in floor area, site coverage, or overall building volume will be permitted. Property owners must obtain a building permit, while projects falling under specific planning requirements must also receive approval from the Central Council of Architecture.
In addition, owners will be required to pay a one-off special fee equal to 5% of the land’s official taxable value before the building permit for the change of use is issued. The proceeds will be allocated to the Green Fund to finance environmental improvement projects and climate neutrality initiatives.
