The President of POMIDA, Mr. Stratos Paradias, highlighted the growing issue of a shortage of rental housing in Greece, emphasizing that while demand continues to increase, the supply of available homes is steadily declining. This is due to high tax rates and the continuously rising costs of maintenance, renovation, and energy upgrades for older homes, making their rental increasingly unprofitable. Mr. Paradias also noted that although the housing programs being implemented are a step in the right direction, two key changes are necessary to effectively tackle the housing crisis:
The removal of the three-year minimum rental period, as it excludes vulnerable tenant groups, particularly in island and rural areas, such as teachers on temporary contracts, rural doctors, police officers, border guards, and many other public sector employees, as well as workers in the tourism industry and construction sites who require only annual leases.
The elimination of the penalty for losing tax exemptions if a rental property is vacated by the initial tenant. This provision creates insecurity for landlords, effectively making them "hostages" to the intentions of their tenants. The 36-month tax exemption should be tied explicitly to each property, not to the identity or actions of the initial tenant, regardless of any changes in tenants during that period.
In his speech at the 42nd National Property Owners Congress in Athens, Minister of Environment and Energy, Mr. Theodoros Skylakakis, announced a legislative intervention aimed at reducing the economic and social costs resulting from the recent ruling declaring certain provisions of the New Building Code (NBC) unconstitutional. The aim is to ensure that environmental considerations are balanced with the need to resolve potential legal consequences that may affect up to 14,000 building permits. He also mentioned that the number of affected permits might be lower due to additional criteria regarding the start of construction, which could lead to legal disputes.
Mr. Grigoris Konstantellos, Vice President of the Central Union of Greek Municipalities (KEDE), commented on the New Building Code, asserting that excessive construction leads to overcrowded cities, placing additional strain on the environment. He suggested offering financial incentives for energy-efficient buildings rather than focusing solely on urban planning. He also criticized the current system in which local authorities only have an advisory role in urban planning, and called for a shift towards greater decentralization of planning powers.
Additionally, he raised concerns about the imposition of property taxes (ENFIA) and waste collection fees on non-electrified properties, especially in areas suffering from depopulation or lack of tourism.
The Head of the Independent Authority for Public Revenue (AADE), Mr. Giorgos Pitsilis, discussed the ongoing digital and organizational transformation of AADE, including the integration of tax data and property management systems. He noted that from 2021 onwards, over 1.2 million property declarations had been submitted via the "my property" platform, generating over 2 billion euros in tax revenue. The implementation of the property registry and new automated property declaration processes is expected to streamline operations and improve tax compliance.
Regarding short-term rental properties (e.g., Airbnb), he highlighted that over 2.2 million declarations were submitted in 2024, reporting 870 million euros in revenue, up from 750 million euros in 2023.
The Minister of National Economy and Finance, Mr. Kostis Hatzidakis, presented the government's housing initiatives, including a 35% reduction in ENFIA (property tax), with an additional 20% discount for insured homes, and the elimination of inheritance tax for properties up to 800,000 euros for first-degree relatives. He emphasized that the recent economic trends are now working in favor of property owners and against tenants, which is why the government is introducing a series of measures to rebalance the housing market. These include various initiatives for property owners, though the government remains committed to ensuring fairness for tenants as well.
Minister of Social Cohesion and Family, Mrs. Sofia Zacharaki, announced the re-launch of the "Renovate - Rent" program in February, with enhanced subsidies and investment limits. A new program for functional housing renovations will also be launched in September, followed by a new housing strategy later in the year.
Deputy Minister of Justice, Mr. Giannis Bougas, noted the ongoing efforts to reform property-related legal procedures, including expediting the settlement of property disputes and introducing digital systems for land property conflicts.
Finally, Deputy Minister of Digital Governance, Mr. Konstantinos Kyranakis, outlined the government's efforts to digitize property transactions, with a new unified property registry system launching in the coming months. By the end of 2025, it is expected that 600 million pages of property records will be accessible online to facilitate faster research and transactions.
Mr. Vassilis Spanakis, Deputy Minister of Labor and Social Insurance, highlighted the ongoing efforts to implement a 60-installment scheme for debts owed to local municipalities and to address the issue of municipal taxes on non-electrified properties, with a digital system set to be implemented in cooperation with the Ministry of Digital Governance.
Finally, Mr. Tasos Iosifidis, Vice President of the Athens Chamber of Commerce, stressed the importance of low-interest housing loans and renovation grants, emphasizing that stable housing is essential for reducing poverty and social exclusion.
These developments reflect an evolving approach to addressing Greece's housing challenges, combining legislative reforms, digital innovation, and targeted financial support to create a more equitable housing market.
