Aegean Real Estate

first posted: 2023-03-31 06:49:03.138211

Short-Term Market Deep Dive

To summarize the airbnb data below:

occupancy oscillates between 20% and 70%
average daily rate spikes in Jun/July/Aug, filling only in Jul/Aug
mostly July/Aug occupancy, curiously, strong occupancy in Feb 23
top 1BR appear most profitable with ADR up to 100, this is most of the market too.
top 2BR has villa with pool with rate ADR to 300
top 3BR do not obtain a better ADR than 2BR and are only 15% of market

###Top 2BR

2BR villas, especially with pool and sea views obtain high daily rate at 300/day and best occupancy.

Top 1BR

1br village house can obtain 100 per day, profitability is maximal for those if occupancy is good. However, many houses are not getting good occupancy.

###Top 3BR

3 beds houses seem harder to market and have no benefit compared to 2br. It is a liffestyle choice for owner rather than investment.

Occupancy

Occupancy goes does to 20% in off month, 70% in peak month.

Average Daily Rate

Mean ADR shows some seasonality going from 50 to 70.

Seasonality

We see ocupancy spikes in Jul/Aug and easter:

Results were obtained from Airdna on 20230401.

Greek Economy Overview

Hilights can be found from wikipedia

Greece is a country of 10m people (to be compared to 80m for Turkey and 60m for France, Italy, UK).
Nominal GDP per capita is 22k nominal, 36k purchasing parity, it is considered an advance economy
main industries are Tourism, Shipping, Agriculture
Tourism is 20% of Greece GDP, to be compared to 15% in Spain, 10% in Italy or France.
Greece was hard hit by the GFC, GDP per capita fell from 94% of EU avg to 67% from 2009 to 2019, consumption per capital fell from 104% to 78%.
unemployment going from 8% to 27.5%, it is now down to 13%, still much higher than before GFC.
Greek economy was hit 10% a second time by covid in 2020, but is recovering since, albeit at a slow 2% growth rate above inflation.

Rental Market and Real Estate Financial and Legal Overview

long term tenant law is neutral: contracts last 3 yr,
no restriction on short term rent on islands surveyed, update 2024: restriction to 90d per year since 2017 (60 day in islands with less than 12000 people) and to a maximum of two properties per manager since 2024.
airbnb: Mainly summer and 2 weeks for Easter.
According to Global Property Guide, gross yield is 5.4%.
Roundtrip cost is a typical 8.5%

Income Tax

According to pwc, income tax on real estate income is as follows. This is the tax applied to tourism rentals too:

0-12k: 15%
12k-23k: 35%
above 35k: 45%

A reduction of 40% of the relative expenditure from Jan 2020 to Dec 2024 for improving insulation, functionality and aesthetics of the building is available

Capital Gains Tax

Capital Gains Tax is 15%, with full exemption after 5Y according to pwc.

However, according to residence-greece for real estate, CGT on the margin of real estate sale follows this much higher taxation table:

0-12k: 15%
12-35k: 35%
above 35k: 45%

with a deduction of 25k for property held more than 5Y.

According to rsm, CGT on disposal of real estate by individuals is not taxed due to an exemption until 2024. This exemption keeps being reenacted for a year every year since 2013.

According to a Geek accountant, there is no CGT for individuals, only for businesses. According to my lawyer, there is normally no CGT upon sale especially if selling on two properties in 2 years. Beyond that, it becomes likely for the tax office to reclassify your house sales as business.

Special Tax Deals for Non Residents

These deals are described here.

7% worldwide income tax for retirees, DTA applies for income taxed at source, regime lasts 15Y, greek income taxed at 44%, needs to be greek NR prior 6 year
flat tax 100k for non retirees greek NR for last 8 years, cannot be reduced by DTA, standard rates on greek income.

These deals last longer than for Italy or Portugal (10y). The numbers are similar for HNWI compared to Switzerland or Jersey, but these deals are impermanent.

Corporate Income Tax

According to pwc, Greece is a tax heaven for shipping companies, for other companies, CIT is 9% to 10k, 22% above that.

Local Tax and Value Tax

ENFIA: imposes a property surface tax from 2 eur/sqm to 16 eur/sqm depending on property prices per sqm in the area, see table. An additional tax 0.2%-1% is assessed for property value in the 400k-2m range, and 2% for properties above 5m. This comes due in April on the ENAI website.

Local duty (TAP) is 0.025% to 0.035%.

Legal: Eligibility for Shengen Visa

Real estate for a total value of 250k, or 400k in more tense markets of Athens or Thessloniki (the 2 largest cities), or Santorini (prime aegean island). This can be of interest for the buyer or for resale assuming the law does not change.

Legal Entities

An useful overview from the greek governement website enterprisegreece.gov.gr is here. Curiously, this material mentions the acronym IKE (1 euro capital private capital company) but does not explain what it is, despite it being the simplest.

This corroborates with companyformationgreece:

anonymous company by shares -- Anonymous Etaireia, capital of 25k min, 2 directors min
limited company -- Etaireia Periorismenis Efthinis, capital 4.5k min, owners must be specified during incorporation
general partnership - O.E, partnership with full liab on general partners, limited partners can be also added
limited partnership/silent partnership - E.E, has general partner with management and liability, and limited partner who only provide capital, silent partner is similar to a limited partner, there is a general partner
joint venture - structure can be created for specific project limted in time

Again, IKE which is the most simple and prevalent according to deepseek is not mentioned.

Subsidies for Tourism Building and Energy Rennovations

Conclusions

Tax is relatively low in Greece, and so is price of real estate. This makes investment there attractive.

see also this article on Arirbnb stats. Airbnb mostly have rates in the $50 to $130 range.

Construction Subsidy Programs:

Update 20240621

tax of 1.5/day for climate crisis resilience in place from Jan 2024, 10eur/day for units of more than 80sqm
max of 2 airbnb unit per owner, businesses can operate more than 2

Update 20250701

climate crisis and resilience tax was increased to 8 euro per day, 15 euro.unit/day for units more than 80sqm.
the 2023 Council of State Decision were expected to lead to swift legistlative remedy to reenable building permits but this did not happen.

Key Points

Research suggests Greece has tightened real estate and Airbnb regulations since 2023, with increased taxes and stricter permitting, possibly making it less welcoming for investors compared to 2023.
It seems likely that the Greek government, based in Athens, is driving these changes to address local issues like overtourism and housing shortages, with possible indirect EU influence.
The evidence leans toward these changes including higher taxes on short-term rentals, new safety and registration requirements, and bans on new Airbnb licenses in central Athens, potentially impacting villa construction and golden visa investments.

Changes in Regulations

Since 2023, Greece has introduced several measures that may affect real estate and Airbnb investors, particularly those looking to build villas or obtain golden visas. Key changes include:

Tax Increases: New taxes on short-term rentals, such as the climate resilience tax, and changes to property taxes like ENFIA, with reductions for insured properties.
Permitting Requirements: Stricter standards for short-term rentals, including minimum space (12 sq m for rooms, 25 sq m for apartments), safety certifications, and a one-year ban on new Airbnb registrations in central Athens areas like Koukaki and Exarchia starting January 1, 2025.
Incentives and Penalties: Tax breaks for converting to long-term leases, but fines up to €40,000 for violations, such as operating without a Property Registry Number (PRN).

These changes could make villa construction harder due to permitting restrictions and impact golden visa investments (requiring a €250,000 investment) by increasing operational costs and regulatory hurdles.

Role of Athens and EU

The Greek government, based in Athens, appears to be the main driver, responding to local challenges like overtourism and housing crises, as seen in statements from Tourism Minister Olga Kefalogianni aiming for sustainable tourism. The EU likely has indirect influence through broader policies on taxation (e.g., DAC7) and tourism sustainability, though specific regulations seem locally motivated.

Survey Note: Detailed Analysis of Changes in Greece's Real Estate and Airbnb Regulations (2023–2025)

This note provides a comprehensive overview of the regulatory changes in Greece's real estate and Airbnb markets since 2023, focusing on tax increases, permitting requirements, and the roles of the Greek government (Athens) and the European Union (EU). It aims to address the shift from a relatively welcoming environment in 2023, where villa construction, golden visa investments (€250,000 threshold), and few Airbnb restrictions were attractive, to the current landscape as of July 5, 2025.

Background Context

In 2023, Greece was seen as more welcoming than Spain for real estate (RE) and Airbnb investors due to opportunities for building villas, obtaining golden visas with a €250,000 investment, and minimal restrictions on short-term rentals. However, since then, regulatory changes have been introduced, likely in response to economic, social, and environmental pressures, including overtourism, housing shortages, and tax evasion concerns.

Tax Changes

Since 2023, Greece has implemented several tax-related changes affecting real estate and Airbnb investors:

Short-Term Rental Taxation: In 2024, significant changes aimed at stricter regulation and taxation were introduced, with the Independent Authority for Public Revenue (AADE) releasing guidelines in 2025 clarifying rules for short-term rentals. Rentals are classified as short-term if they last no more than 59 days, offering basic amenities like linens, and require registration with a Property Registry Number (PRN) and filing declarations per lease. This is part of efforts to clamp down on tax evasion, with deadlines like February 28, 2023, for updating AADE registry information, and fines for non-compliance.
Climate Resilience Tax: A new climate resilience tax, effective in 2025, increases fees for tourism accommodations, including short-term rentals, to fund disaster preparedness, potentially doubling costs for investors.
Property Tax Adjustments: Changes to the ENFIA (property tax) include a 20% reduction from 2025 for properties up to €500,000 taxable value if insured against natural disasters, up from 10%, incentivizing compliance but adding administrative burden.
Incentives for Long-Term Leasing: A 2024 tax bill offers a 3-year rental tax exemption for landlords signing 3-year leases before December 31, 2025, if properties were previously short-term rentals, aiming to increase long-term housing supply.

These tax changes increase operational costs for Airbnb investors, particularly those with multiple properties, and may deter new investments, especially in high-demand areas.

Permitting Requirements

Permitting requirements have also tightened, impacting villa construction and short-term rental operations:

Construction Restrictions: The 2023 Council of State decisions (176/2023 and 992/2023) restricted off-plan construction, requiring plots to have frontage on legally recognized public roads (existing before 1977) and minimum sizes, effectively halting many villa projects outside urban plans. While expected to be lifted by law in 2023, delays persist, with proposed regulations in January 2024 (e.g., reducing road frontage to 3.5 meters) not yet finalized as of July 2025, creating uncertainty.
Short-Term Rental Regulations: Starting January 1, 2025, new registrations for short-term rentals are suspended for one year in specific Athens areas (e.g., Koukaki, Exarchia, Pagrati, Petralona), with minimum operational standards including 12 sq m for rooms, 25 sq m for apartments, natural lighting, ventilation, heating or air conditioning, and mandatory fire safety certifications. Properties must also have civil liability insurance, pest control certificates, and first aid kits, effective October 1, 2025, to ensure guest safety.
Ban on New Licenses: A ban on new Airbnb licenses in central Athens (e.g., Plaka, Kolonaki, Syntagma) from January 1, 2025, to December 31, 2025, with fines of at least €20,000 for non-compliance, aims to mitigate overtourism and housing shortages.
Electronic Cadastre and Building Permits: Tighter building permits, especially in rural areas, align with EU environmental goals, complicating villa construction further, as seen in delays in completing the electronic cadastre by 2026.

These changes make it harder for investors to build villas or operate short-term rentals, particularly in popular tourist areas, potentially reducing the attractiveness for golden visa investments.

Role of Athens (Greek Government)

The Greek government, based in Athens, is the primary driver of these changes, responding to domestic challenges:

Overtourism and Housing Crisis: Statements from Tourism Minister Olga Kefalogianni highlight efforts to balance tourism revenue (13% of GDP in 2023, expected €22 billion in 2024) with housing accessibility, as Airbnb is "drastically transforming neighbourhoods" and increasing rents during the cost of living crisis. The one-year ban on new short-term rental licenses and incentives for long-term leases reflect this balance.
Tax Compliance and Revenue: The government has cracked down on tax evasion, with AADE guidelines and fines for unregistered properties, aiming to boost property tax revenue amid economic pressures.
Sustainable Tourism: The focus on safety standards (e.g., fire extinguishers, escape signs) and environmental compliance aligns with long-term goals for high-quality, sustainable tourism, as seen in the climate resilience tax and stricter building permits.

These actions suggest Athens is prioritizing local needs over investor-friendly policies, potentially reducing Greece's appeal compared to 2023.

Role of the EU

While the EU does not directly mandate specific Airbnb regulations, it likely has indirect influence through broader policies:

Taxation Directives: The EU's DAC7 directive, implemented in Greece, requires sharing tax data for short-term rentals, impacting how platforms like Airbnb report income, aligning with Greece's efforts to regulate taxation.
Environmental and Tourism Standards: EU directives like 2001/42/EC (environmental assessments for urban planning) and the Green Deal may encourage stricter building permits and sustainability measures, influencing Greece's approach to off-plan construction and short-term rental regulations.
Recovery and Resilience Facility (RRF): Greece's RRF plan, approved by the EU, emphasizes green investments and digitalization, potentially supporting regulatory reforms like the electronic cadastre, though not directly tied to Airbnb.

The EU's influence seems more framework-setting, with Greece adapting to fit these standards while addressing local issues.

Comparative Impact on Investors

The table below summarizes key changes and their impact on real estate and Airbnb investors compared to 2023:

Aspect	2023 Status	2025 Changes	Impact on Investors
Villa Construction	Possible with few restrictions	Restricted by Council of State rulings, delays in lifting bans	Harder to build, increased permitting costs
Golden Visa (€250,000)	Attractive, low regulatory burden	Higher operational costs due to taxes, permits; potential reduced appeal	May deter new investments
Airbnb Restrictions	Few, minimal registration requirements	Stricter standards, bans in central Athens, fines for violations	Reduced profitability, especially in urban areas
Tax Environment	Relatively light	Increased taxes (climate resilience, ENFIA adjustments), incentives for long-term	Higher costs, shift to long-term may be forced

Conclusion

Since 2023, Greece has significantly tightened real estate and Airbnb regulations, increasing taxes and permitting requirements, driven primarily by the Greek government to address overtourism, housing shortages, and tax compliance, with possible indirect EU influence through taxation and environmental policies. These changes likely make Greece less welcoming for RE and Airbnb investors compared to 2023, impacting villa construction, golden visa investments, and short-term rental operations, particularly in urban areas like Athens.

Supporting URLs:

	Tweet
Click here to share this on BiggerPockets.com!

Investor Real Estate Accounts