As of October 1, 2025, Greece will implement new regulations for short-term rental properties, marking a pivotal step toward establishing operational standards for the booming rental market. This initiative, announced by Greek Tourism Minister Olga Kefalogianni, aims to enhance safety, quality, and accountability in the sector. These changes come amid growing concerns about unregulated properties and their impact on local communities.
New Standards for Short-Term Rentals
The new law introduces a range of specifications for properties listed on short-term rental platforms like Airbnb and Expedia. For the first time in Greece, short-term rentals must adhere to the following operational standards:
- Civil Liability Insurance: To cover potential damages or accidents.
- Safety Certifications: This includes an electrician’s certificate, fire extinguishers, smoke detectors, cut-off relays, and escape route signs.
- Sanitary and Emergency Provisions: A pest control certificate, a first-aid kit, and an emergency contact guide are now mandatory.
- Structural Requirements: Properties must have proper natural lighting, ventilation, and air conditioning.
Initially, the bill excluded non-residential properties, such as warehouses or repurposed industrial spaces. However, a last-minute amendment removed the term “residential” from eligibility criteria, allowing such properties to remain in the market. This adjustment protects approximately 20,000 urban properties from being disqualified.
However, properties that fail to meet these standards, such as poorly lit basements or semi-basements, will be delisted from platforms starting October 2025.
Enforcement and Penalties
The new rules come with strict enforcement measures to ensure compliance. Inspections will be conducted by teams from the Tourism Ministry and Greece’s Independent Public Revenue Authority (AADE). Property owners are required to provide all necessary documentation, including safety certificates and proof of insurance.
Key penalties include:
- Initial Fine: A €5,000 fine for non-compliance, applicable in cases such as denying inspectors access or failing to meet safety and structural requirements.
- Escalating Penalties: If violations persist, the fine doubles upon re-inspection and quadruples for repeated offenses.
For example, a second violation within a year of the initial fine will result in a €10,000 penalty, while subsequent offenses will incur fines of €20,000 or more.
Reactions from Industry Stakeholders
The legislation has sparked mixed reactions. Key tourism organizations, including the Hellenic Chamber of Hotels and the Greek Tourism Confederation (SETE), have expressed support, highlighting the benefits of regulating the sector. They argue that the new rules will create a safer and more sustainable environment for both visitors and locals.
Conversely, property management groups like the Hellenic Property Federation (POMIDA) and the Short Term Accommodation Managers Association (STAMA Greece) have voiced opposition. They argue that the bill could discourage investments and place undue strain on property owners. Some associations, such as PASIDA, are planning legal challenges, calling the legislation unconstitutional and warning of potential disruptions during the peak tourist season.
Economic Implications
Despite the controversy, the short-term rental market has been a significant contributor to Greece’s economy. Tax revenues from rentals have grown exponentially, increasing more than tenfold since 2017. According to Giorgos Pitsilis, head of the Independent Authority for Public Revenue, revenues are projected to reach €830 million in 2024.
The new regulations aim to sustain this growth by fostering trust and ensuring that properties meet high-quality standards. By balancing regulation with market growth, Greece hopes to position itself as a global leader in sustainable tourism.
What Does This Mean for Property Owners?
For property owners, compliance will require an investment in safety measures and operational improvements. While the upfront costs may be substantial, adhering to the new standards ensures continued access to popular rental platforms and a competitive edge in the market. Moreover, properties that meet the new specifications are likely to attract higher-paying guests who value safety and quality.
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