New Housing Subsidy Plan Targets Severe Shortages in Key Public Services
The Ministry of Finance is preparing a broad housing support initiative for 2026 aimed at roughly 50,000 doctors, nurses and teachers who often face major challenges securing accommodation in remote or high tourism regions. Rental availability has grown increasingly limited in many parts of the country, prompting public service workers to shoulder significant financial burdens when relocating for duty. Conditions on the islands have become particularly strained as tourism demand encourages property owners to prioritize short term rentals, drastically reducing long term housing options.
Local communities have repeatedly expressed frustration over shortages of essential staff while simultaneously witnessing an absence of affordable homes for those required to serve there. Data from indomio indicates that rents on Aegean islands range between 6.33 and 12.45 euros per square meter, while rates on the Ionian islands fall between 7.52 and 9.85 euros per square meter. These elevated prices have created an environment where many frontline professionals struggle to secure suitable accommodation near their workplace.
The government intends to counter these pressures by introducing a triple rent refund mechanism beginning in 2026. The plan provides for a double rent refund every November for eligible public sector workers and includes an additional retroactive refund covering 1 month of rent from 2025, to be paid by March 2026. Eligibility applies to health and education professionals renting homes far from their permanent residence, excluding only those stationed in Attica and Thessaloniki. The measure applies universally without income criteria.
Refund calculations will follow the framework used during the previous year’s rent support scheme. Maximum monthly reimbursement reaches 800 euros for a primary residence, with an extra 50 euros for each dependent child when rent exceeds 800 euros. No refund may exceed 1/12 of the total annual declared rental cost filed with AADE. Retroactive refunds for 2024 will be disbursed automatically early in 2026 based on submitted tax return data, ensuring eligible workers receive support without needing to apply.
Professionals with multiple consecutive leases will have their total rent expenditures combined for the purpose of determining their refund. The double rent refund scheduled for November 2026 will apply to rent paid throughout 2025. To secure these payments, workers must have submitted a valid rental contract to AADE and included the relevant declaration number in their 2024 and 2025 tax returns. In cases where a lease has been amended, only the most recent contract declaration number is required.
