Athens to ban new short-term lets

The decision, set to take effect on January 1, 2025, is temporary and will only be partial… for now.
With the summer season winding down and prominent European vacation spots reflecting on another bustling tourist season, many are starting to realize that a tipping point in terms of impact may have been reached. Just a day after inhabitants of Budapest voted to prohibit short-term rentals in a central district, similar news emerges from Athens, the capital of Greece.
The Greek government has opted to halt the issuance of new short-term rental licenses in the first, second, and third municipal districts in downtown Athens starting from January 1, 2025. However, this restriction will be temporary and last for a year. Subsequently, an evaluation of the impact on the local housing situation will take place before determining whether to prolong the measure.
Additionally, there will be an increase in the tax burden on the sector.
Initially, authorities had planned to restrict the number of days (to 90) that property owners can host tourists, but this plan was discarded as not impactful enough. The new approach focuses on districts where short-term rentals make up more than 5 percent of the total housing inventory.
Authorities are also utilizing fiscal measures to encourage landlords to exhibit more solidarity with locals who struggle to find affordable housing.
As per Reuters, the Finance Minister Kostis Hatzidakis mentioned that a daily tax on short-term rentals, which contributes to dealing with the repercussions of climate change-related natural disasters, will rise from 1.5 euros to 8 euros during the April-to-October period. In the low-season winter period, the tax will go up from 0.5 to 2 euros.
The year 2024 is on track to be a record-breaking year for Greece in terms of tourism revenue, with estimates indicating that the total amount could hit 22 billion euros.