Introduction to the New Housing Framework
The government has finalized a package of 29 housing interventions with a total cost exceeding 2.6 billion euros for the period 2025 to 2026. These actions aim to address the ongoing housing shortage and provide relief to households.
New Actions Launching in 2026
The year 2026 will introduce 9 new measures focused on expanding the supply of available homes for both long term rental and ownership through targeted financial and regulatory initiatives.
Renovation Program for Older Homes
A new 400 million euro program funded through the European framework will support the renovation of older properties. Grants will cover up to 80 percent of renovation costs with additional support for families and remote regions. Eligible homes must be under 120 square meters with building permits issued before 1990.
Renovation of Municipal and Regional Residences
The program includes the refurbishment of municipal or regional buildings in mountainous and island areas. These spaces will be offered with long term rental agreements for public sector workers including teachers medical staff police and emergency personnel.
Return of Two Rents for Public Sector Staff
Teachers doctors and nurses working outside the major metropolitan regions will receive a yearly return of two monthly rents starting in 2026. An estimated 50000 people will benefit.
Extension of Short Term Rental Restrictions in Thessaloniki
Short term rental limitations will expand within Thessaloniki from March 2026 covering areas with high density listings.
Incentives for New Long Term Rental Housing
Construction companies will be encouraged to create new rental housing with at least ten year contracts. Income from these rentals will be deductible from corporate taxes.
Urban Planning Adjustment for Residential Use
A new legislative update will allow quicker conversion of non residential properties into homes making use of vacant or unfinished structures.
Housing Program for Armed Forces
A new initiative for the armed forces is planned with full details expected in 2026.
Modernization of Inheritance Law
The government intends to speed up the resolution of complex inheritance cases involving shared property.
Tenant Reliability Registry
A new registry for tenant reliability is expected to begin pilot operation in early 2026 encouraging owners to reintroduce unused properties into the rental market.
Measures Active in 2026
The upcoming year includes several continued or expanded initiatives including tax exemptions and rental support measures.
Extended Tax Relief for Empty Homes
The three year income tax exemption program for landlords renting previously vacant homes will continue with expanded eligibility for large families.
Property Tax Reductions for Small Settlements
Property tax will be reduced by 50 percent in 2026 and eliminated entirely in 2027 for primary residences in settlements with populations up to 1500 residents under specific geographic exclusions.
Extension of VAT Suspension for New Builds
The suspension of VAT for new construction will continue through 2026.
Continued Tax Reduction for Building Upgrades
Tax reductions for property improvement expenses will remain in effect through 2026.
Short Term Rental Restrictions in Athens
Restrictions on new short term rental registrations in central Athens will be extended.
Social Housing through Public Private Collaboration
Public assets will be leveraged to create new social housing options including units available for social renting and potential purchase.
New Income Tax Bracket for Rental Earnings
An intermediate income tax rate of 25 percent will be introduced for rental earnings between 12000 and 24000 euros from the 2026 fiscal year.
Measures Starting in 2025
Several significant programs begin in 2025 including the second phase of the widely used housing loan program.
Second Phase of the Home Program
This program provides low interest housing loans for individuals and couples aged 25 to 50 with a total budget of 2 billion euros.
Three Year Tax Exemptions for Vacant Homes Converted to Rentals
Owners converting vacant or short term rental properties into long term rentals will continue to receive tax exemptions through the end of 2025.
Ban on New Short Term Rentals in Central Athens
From January 2025 new listings will not be allowed in the first three municipal districts of Athens.
Increase of Resilience Fee on Short Term Rentals
The fee applied to short term rentals will increase to 2 euros during winter and 8 euros during summer.
Higher Property Tax for Vacant Properties Owned by Banks
Vacant residential properties owned by financial institutions and servicers are now subject to double the standard property tax.
Increase in Renovation Subsidies
The maximum subsidy for the Renovate and Rent program has increased to 8100 euros supporting renovation of empty properties.
Annual Rent Return for Most Tenants
From November 2025 most tenants meeting income criteria will receive an annual refund equal to one monthly rent.
Earlier Housing Interventions Still in Effect
Several significant actions introduced in earlier years continue to impact the housing market including tax reductions and renovation incentives.
Reduction of Property Tax by 34 Percent
A widespread property tax reduction remains in effect supporting property owners nationwide.
Removal of Gift and Parental Transfer Taxes
Transfers of up to 800000 euros between immediate family members remain tax free.
Suspension of VAT for New Builds
The suspension of VAT for new constructions continues from its earlier introduction.
First Phase of the Home Program
The first phase of the affordable housing loan program for young people and couples remains active.
Energy and Renovation Program for Young People
A dedicated program with a budget of 300 million euros supports energy upgrades and renovations for younger owners.
Renovate and Rent Initiative
The program offers subsidies for renovating empty homes that will enter long term rental markets.
Total Cost of the Housing Measures
The combined cost of new housing actions for 2025 and 2026 reaches approximately 2.637 billion euros with additional annual commitments for ongoing programs such as rent returns and property tax reductions.
