Greece Tackles Housing Crisis with Tax Breaks for Long-Term Rentals

Greece is offering a three-year tax break to homeowners who convert short-term rentals into long-term ones, addressing housing shortages. This initiative follows similar actions in other European hotspots. The Greek government also plans to increase taxes on short-term rentals and ban new licenses in central Athens to alleviate the housing crisis.

Greece announced on Friday a three-year tax break for homeowners converting short-term rentals into long-term lets. This move aims to address the housing shortage that has troubled the nation for years. The decision aligns with measures taken by other European countries, including Spain's Canary Islands, Lisbon, Berlin, and Florence.

Prime Minister Kyriakos Mitsotakis revealed additional steps last week, which include increasing taxes on short-term rentals and banning new licenses in central Athens. Residents of the capital have shown support for the government's plans, hoping for a solution to the ongoing crisis.

Low wages, high inflation, and property shortages, compounded by a surge in short-term holiday rentals, have exacerbated Greece's housing crisis, especially affecting low-income earners, young couples, and students. The government has already spent 2.2 billion euros on subsidizing low-interest loans for young people and will allocate another 2 billion euros to extend this aid to couples up to 50 years old.

(With inputs from agencies.)