Greece is introducing a new tax bill designed to encourage the leasing of vacant properties, give incentives for property insurance and regulate short-term rentals among other things.
More specifically, the key provisions of the new tax bill include tax exemption for vacant properties according to which property owners can receive a three-year tax exemption on rental income if they lease residences that were previously unoccupied under certain conditions:
1. Properties must not be more than 120 square meters.
2. Lease agreements must span at least three years, established between Sept. 8, 2024, and Dec. 31, 2025.
3. Properties must have remained unoccupied during the tax years from 2022 to 2024. They must not have been declared as rented, primary, or secondary residences in tax filings (E1 and E2 forms) or exclusively used for short-term rentals unless declared with the tax authority.
The new bill will also include enhanced ENFIA discounts for insured properties starting from 2025. Properties insured against natural disasters like fire, earthquakes, and floods will qualify for an ENFIA cut of 10% to 20% applicable to residential properties worth up to 5000,000 euros. Properties will be eligible for this reduction provided they have been insured for a minimum of three months the previous year.
What is more, the bill provides for a suspension of capital gains tax, with it being deferred for another two years. The provision to exempt new buildings from VAT until 2025, is to be expected in another bill.
There is to be a restriction on short-term rentals, like Airbnb, in central Athens, including the 1st, 2nd and 3rd municipal districts in 2025, with non-compliance fines ranging from 20,000 euros, and reaching 40,000 euros for repeat violations.
Finally, a new “Climate Resilience Fee” will be introduced, applying to tourist accommodations from April to Oct. The fee will be calculated per night and will vary depending on the accommodation type.
