Greece proposes extending rental tax exemption to 2027

The Greek government has proposed extending a tax incentive for landlords into 2027 to help address the nation's housing shortage. The proposal, included in a broader tax and spending bill from the Finance Ministry, aims to encourage property owners to bring vacant homes into the long-term rental market.

Under the proposed extension, the duration of the tax exemption would remain at 36 months, but the deadline for qualifying property owners to sign agreements would be pushed to the end of 2027. Currently, qualifying leases must be signed by December 31, 2026.

The incentive is designed for individual landlords renting residential properties, typically those under 120 square meters. Eligible properties include previously vacant homes or those converted from short-term to long-term rentals. To maintain the benefit, owners must comply with specific restrictions, such as not returning the property to short-term rental use, which could result in the retroactive loss of the tax exemption.