In an effort to tackle a housing shortage, Greece has announced a three-year tax break for homeowners who convert their short-term rentals to long ones. This move follows similar restrictions on holiday lets in other European countries like Spain, Lisbon, Berlin, and Florence, where local residents believe these rentals drive up housing costs.
Prime Minister Kyriakos Mitsotakis also revealed plans to increase taxes on short-term rentals and ban new licenses in central Athens. The proposed measures have been positively received by residents, who have witnessed a transformation of their urban landscape due to Airbnb properties.
Greece’s housing crisis, exacerbated by low wages, high inflation, and property shortages, especially affects low-income earners, young couples, and students. The government has allocated funds to provide low-interest loans to young people looking to buy homes and plans to extend the program to couples up to 50 years old.
Minister Sofia Zacharaki highlighted the urgent need to address the housing shortage in Greece, signaling a commitment to finding sustainable solutions. Airbnb has expressed readiness to collaborate with the Greek government on implementing targeted measures.
Overall, Greece’s initiatives aim to strike a balance between tourism-driven economic growth and ensuring affordable housing for its residents.