Greece to ban short-term rentals in Athens districts in 2025

Greek authorities have announced a one-year ban on new short-term rental licences in three central Athens districts, effective from January 1, 2025. In addition to the ban, Greece will raise the daily tax on such holiday lets from €1,5 to €8 during the peak tourist season from April to October, and from €0,5 to €2 in the winter months.

The decision aims to tackle the housing shortage, which has been exacerbated by the rise of online platforms like Airbnb. Greece, like other European tourism destinations, faces the challenge of balancing a profitable tourism industry with the housing needs of permanent residents who are seeking long-term rentals.

“We have found that they (short-term rentals) operate somehow as hotels, while there is also a lot of pressure on society,” Greek Tourism Minister Olga Kefalogianni told reporters.

Low wages, high inflation, and property shortages are among the root causes of the recent housing crisis. The situation has been exacerbated by homeowners choosing short-term lets for their property, limiting available housing for Athenians who continue to struggle to find an affordable place to call home.

Property owners, referred to as “hosts” by Airbnb, can make far more money renting their property to out-of-towners on a short-term basis than they would collect in monthly rent from a traditional renter. Meanwhile, real estate investment firms have contributed dramatically to the growth of Airbnb.