Property owners with vacant residential properties or homes previously used for short-term rentals may, subject to specific conditions, switch to long-term letting and benefit from a 36-month income tax exemption on the rental income generated by those properties.
The incentive applies to eligible leases entered into by 31 December 2026. Property owners considering taking advantage of the scheme should therefore check their property's eligibility in good time and ensure that all requirements are met before completing the new lease.
The potential tax benefit can be substantial. Depending on the owner's overall rental income, the applicable income tax rate can reach 45%. 45%.
Which property owners can benefit from the tax exemption?
Which property owners can benefit from the tax exemption?
In particular, the scheme may apply to:
- Residential properties that had been declared vacant for at least three years, provided their previous status can be verified through the relevant E2 tax declarations.
- Residential properties previously used for short-term rentals, provided that their previous use can be substantiated through the relevant declarations and records.
The property must subsequently be made available for residential use under an eligible long-term lease.
What are the main eligibility requirements?
Simply having a vacant property or a home previously used for short-term rentals is not enough to qualify for the income tax exemption.
All applicable conditions must be met, and the property's previous use must be supported by the information already reported to the Greek tax authorities (AADE).
As a general rule, the long-term lease must have a minimum duration of three years, as stated in the electronic lease declaration.
A special provision applies to leases of at least six consecutive months for certain categories of public-sector employees, including teachers, medical and nursing staff, as well as members of the Armed Forces and Security Forces.
The measure applies to eligible leases entered into between 8 September 2024 and 31 December 2026.
Which properties qualify for the tax exemption?
The exemption applies to residential properties of up to 120 sq.m.
This limit may be increased by 20 sq.m. for each dependent child, subject to the applicable requirements.
As eligibility depends both on the characteristics of the property and on its tax and rental history, it is important to carry out the necessary checks before entering into a new lease.
How is the rental income tax exemption secured?
One of the most important steps is the correct electronic declaration of the lease with AADE.
A private agreement with the tenant or the signing of a lease agreement alone is not sufficient to secure the tax benefit.
The required electronic procedure must be completed correctly, and the lease itself must satisfy all the conditions of the scheme.
Για τον λόγο αυτό, ο έλεγχος του ακινήτου και των φορολογικών του στοιχείων For this reason, reviewing the property's details and tax history before the lease is finalised can help prevent errors that could affect eligibility for the exemption. μπορεί να αποτρέψει λάθη που θα μπορούσαν να επηρεάσουν την εφαρμογή της απαλλαγής.
What does a 36-month tax exemption mean in practice?
The exemption begins in the month in which the eligible lease is entered into and may apply for a period of 36 months.
The benefit relates specifically to the income tax that would otherwise be payable on the qualifying rental income.
As rental income in Greece is taxed progressively, the actual financial benefit will vary from one property owner to another and may depend on factors including:
- the monthly and annual rent,
- the owner's total rental income,
- the duration of the eligible lease,
- the ownership structure of the property,
- whether the property is jointly owned,
- and full compliance with all conditions of the tax exemption.
For property owners falling within the highest rental income tax bracket, the exemption may cover income that would otherwise be taxed at a rate of up to 45%.
What is not covered by the exemption?
The measure does not make the property entirely tax-free or exempt the owner from all costs associated with owning and letting it.
The exemption applies specifically to income tax on qualifying rental income for the relevant 36-month period.
Other obligations, including ENFIA property tax, as well as insurance, maintenance, operating costs and other expenses associated with owning and renting the property, continue to apply.
Why should property owners not wait until December?
The 31 December 2026 deadline relates to entering into an eligible lease, rather than simply starting preparations or expressing an intention to rent out the property.
In practice, several steps may need to be completed beforehand. These can include reviewing the property's tax history, preparing the property for rental, finding a suitable tenant, agreeing on the terms of the lease and completing the required administrative procedures.
Properties that have remained vacant for a significant period may also require maintenance, repairs or renovation before they are ready to be placed on the long-term rental market.
Property owners interested in taking advantage of the exemption should therefore assess their eligibility well in advance rather than leaving the process until the final days of the year.
AFS support for property owners
Making use of the tax exemption requires a careful review of the applicable conditions before entering into a new lease.
AFS – Athens Financial Services AFS – Athens Financial Services can review your property's tax history and relevant information, assess whether the eligibility requirements are met and guide you through the necessary tax and reporting procedures.
If you own a vacant residential property or a home previously used for short-term rentals and are considering switching to a long-term lease, contact the AFS team to have your case assessed.
Complete our contact form, and a member of the AFS team will get in touch with you to discuss your case and the next steps.
Alternatively, you can contact us directly:
📞 210 8317 702
📧 info@afs.gr
