Real Estate: Three conditions for tax exemptions on closed properties, temporary freeze on new airbnb

From January 1, 2025, new restrictive measures for Airbnb properties will take effect (including a freeze on new licenses in Athens’ 1st, 2nd, and 3rd districts). The three-year tax exemption for closed properties, however, begins today and will be available until the end of the following year. However, there are certain conditions for property owners who wish to open their properties for long-term rentals.

Properties must meet the following conditions:

1. They must have been declared as closed for the past three years.
2. They must have had no electricity consumption recorded.
3. Their size must not exceed 120 square meters.

If these conditions are met, property owners can, starting today, declare that they are opening the property or withdrawing it from short-term rental platforms and making it available for traditional rental. They will be able to do this until the end of 2025, as clarified by the leadership of the Ministry of National Economy and Finance. The three-year tax exemption will commence when the rental begins, though this will be further detailed in the relevant legislation.

Details: Any individual owner (legal entities are excluded) who converts a vacant property (as declared on their E2 form for at least 3 years) or a property in short-term rental (for at least 3 years) into long-term rental (for at least 3 years, as per the electronic rental contract) between September 8, 2024, and December 31, 2025, will receive a three-year income tax exemption for that specific rental income. The measure applies to properties up to 120 square meters.

According to data from the Independent Authority for Public Revenue (AADE), in 2023, the number of vacant properties across Greece reached 600,000. The previous year, approximately 7,000 properties were rented out, accounting for 1.2%. The government aims to increase this percentage over the next 1.5 years.

Regarding short-term rentals, there will be a transitional period until the end of 2024, during which it will be possible to issue a new Property Registry Number for the three districts in Athens, where restrictive measures will take effect starting January 1, 2025.

Additionally, from April to October, the Climate Crisis Resilience Fee will increase (the exact amount is yet to be clarified). This fee is imposed per daily use per apartment. For the months of November through February, the fee is set at €0.50/day. If the short-term rental properties are single-family homes larger than 80 square meters, the fee is set at €4. For the months of March through October, the resilience fee increases to €1.50 and €10, respectively.