Greece expands property tax breaks: new opportunities for short-term rentals

Greece, a country with a rich history and picturesque landscapes, is actively working to improve conditions for property owners. In recent months, the government announced significant changes to the tax legislation regarding short-term rentals.

These changes are aimed at stimulating the rental market and supporting homeowners, which has certainly attracted interest from both investors and renters.

The Greek government is planning to improve the current regulation under which property owners who rent out their properties for short terms can count on tax breaks. Previously, in order to receive an exemption from rental income tax, it was necessary to rent out a property for at least three years for short terms. However, the new proposal reduces this period to one year. This means that owners who have already rented out their properties for short terms for a year and then decide to convert them to long-term rentals will be able to benefit from tax breaks.

This change opens up new opportunities for property owners, who can not only reduce their tax liabilities but also manage their assets more flexibly.

Short-term rentals, especially in tourist areas of Greece, are in high demand, and many owners may decide to try this format before moving to long-term rentals. Now they can do so with confidence, knowing that they will be able to receive tax benefits even if their properties were rented short-term for only one year.

How will this affect the property market?

These changes could significantly change the dynamics of the property market in Greece. On the one hand, owners will be more willing to rent out their properties short-term, knowing that they have the opportunity to easily transition to long-term rentals with favorable tax conditions. On the other hand, this could lead to an increase in supply on the rental market, which in turn could affect prices and rental conditions.

Experts' Opinion

Real estate experts welcome these changes, stressing that this is a step in the right direction. They note that tax incentives can attract more investment in the rental market, which in turn will help improve the state of the country's real estate market and create additional jobs in the service sector.

What's next?

Despite the positive changes, the Ministry of National Economy and Finance does not yet support the proposals to introduce similar incentives for empty properties. This may limit the opportunities of owners who have unused properties. However, given the current changes, there is hope that in the future, the government may review this part of the legislation.

In conclusion, the expansion of tax incentives for property owners in Greece is a significant step that can lead to positive changes in the rental market. Owners now have the opportunity to manage their assets more flexibly, which in turn can contribute to the development of the country's economy as a whole.