22.10.2026
Best Islands to Retire in Greece
Based on recent data of ours, almost one in three buyers (30.8%), mainly retirees, from abroad are looking for a property in Greece for a permanent residence.
Market Insights
Greece has long been a favourite destination, and increasingly, foreigners are choosing not only to spend holidays here, but to invest in property as well. Many owners rent out their homes, either short-term or long-term, as a way to generate income. Renting out a home in Greece can offer attractive returns, but for new owners, the rules, taxes, and legal requirements can feel confusing at first. For those considering a long-term lease, understanding the legal framework is essential. Below, you'll find everything you need to know about expected income, documentation, taxes, and property management options.
The Difference Between Long-Term and Short-Term Rentals
The main difference between short-term and long-term rentals in Greece lies in the purpose and structure of the rental. Short-term rentals are typically aimed at travellers and holiday guests and are usually registered under Greece's short-term rental framework, such as Airbnb-style accommodation. These stays are temporary and often involve frequent guest turnover. Long-term rentals, on the other hand, involve a tenant renting the property as a residence for an extended period, usually measured in months or years. While short-term lets may generate higher income per night, long-term rentals offer stability, fewer administrative demands, and predictable monthly payments. In Greece, a long-term lease is defined as a rental agreement lasting 60 days or more. As of 1 January 2024, any lease with a duration of at least 60 days is no longer classified as a short-term rental and is treated as a standard long-term tenancy. This means that the landlord must submit the required lease information to the Greek tax authorities (AADE), in line with the applicable regulations.
Why Consider Long-Term Rentals in Greece?
Renting your property long-term can provide a steady income stream and a reliable way to cover ongoing costs such as maintenance and taxes. Unlike short-term holiday rentals, long-term tenants offer consistency, reduced turnover, and less day-to-day involvement. Some of the main advantages include:
Stable income: Monthly rent payments are predictable and less dependent on seasonal demand.
Lower management stress: Tenant changes are less frequent, meaning fewer check-ins, repairs, and administrative tasks.
Stronger tenant relationships: Long-term tenants often treat the home as their own, which can lead to better care of the property over time.
Expected Income
The owner determines the rent, but setting it at the right level plays an important role in attracting a suitable tenant and building a stable, long-term rental relationship. Rental prices vary depending on factors such as location, condition, and amenities. Rent is often influenced by:
Proximity to the sea and views
The age and condition of the property
Outdoor features such as gardens or pools
Furniture and appliances
Access to transport hubs
Local supply and demand
Monthly income from long-term rentals will usually be lower than the total revenue possible from holiday lets. Still, many owners find that the steady payments and reduced workload make long-term renting the more practical option.
The Lease Agreement
A long-term residential rental in Greece is formalised through a written lease agreement between the property owner (landlord) and the tenant. A notarial deed is not required for standard residential leases, but a written contract is essential. The lease must also be declared electronically to the Greek tax authorities (AADE) through the Taxisnet platform. Once the landlord submits the declaration, the tenant must accept it online. If the tenant takes no action within 30 days, the declaration is treated as accepted automatically. A properly drafted lease typically includes the identities of both parties, a description of the property, the rent amount, deposit terms, duration, and the obligations of landlord and tenant. Clear terms from the beginning help avoid misunderstandings later.
Duration
Greek law provides a mandatory minimum duration of three years for residential leases used as a tenant's primary home. Even if the contract states a shorter term, the tenant may still have the legal right to remain for three years, provided they meet their obligations. Longer durations may also be agreed.
Rent and Payment Terms
The lease should clearly state the monthly rent, the payment method, and the due date. Rent is normally paid by bank transfer. Greece is moving away from cash rent and towards traceable payments registered with the tax authorities, so bank transfer is increasingly the expected method rather than simply the usual one. If annual rent adjustments are agreed, for example a fixed percentage increase, this must be explicitly included in the contract. Rent increases cannot be imposed unilaterally unless the lease provides for them.
Security Deposit
Tenants usually pay a security deposit when signing the lease, typically equal to one or two months' rent. This deposit protects the landlord in cases of unpaid rent, damage beyond normal wear and tear, or outstanding obligations. At the end of the lease, it is returned provided the property is delivered in the agreed condition.
Maintenance and Expenses
In general, the landlord is responsible for major structural repairs, while the tenant covers everyday maintenance and minor issues resulting from normal use. Utility bills and building common expenses are typically paid by the tenant, and electricity and water contracts are often transferred into the tenant's name.
Termination
After the minimum three-year period, either party may terminate the lease according to the contract terms. Early termination within the protected period may require mutual agreement or specific legal grounds.
Legal Requirements for Long-Term Rentals in Greece
If you decide to rent your property long-term, you have basic tax and reporting obligations. The landlord must declare the lease electronically and report rental income annually through the appropriate tax forms.
Required Supporting Documents
Common documents include:
Energy Performance Certificate (EPC): Required for renting out property.
Signed lease agreement.
Electronic lease declaration to AADE: The landlord must submit this by the end of the month following the start of the lease, or following any amendment. Late submission can trigger automatic fines.
Tenant documentation: Usually an ID or passport and a Greek tax number (AFM).
Owner documentation: Proof of identity and ownership.
Foreign owners will also need a Greek AFM (Tax Identification Number), which is required for all property-related transactions.
Taxes on Rental Income
Rental income in Greece is taxed progressively:
€0 – €12,000: 15%
€12,001 – €24,000: 25%
€24,001 – €36,000: 35%
Above €36,000: 45%
A practical advantage of co-ownership is that tax brackets apply per owner, which can reduce the overall burden for couples. Property owners should also remember that ENFIA, Greece's annual property tax, remains payable even while the home is rented out.
Tenant Protection in Greece
Greek rental law offers strong protection for tenants in long-term residential leases. The three-year minimum duration applies even if a shorter term is written in the contract. Importantly, the sale of a rented property does not automatically terminate the lease. A new owner steps into the position of the previous landlord and must respect the tenant's rights until the protected period ends. For buyers, this makes it essential to understand the status of any existing tenancy before completing a purchase.
Termination of Lease
Both landlord and tenant may terminate the lease under certain circumstances, such as breach of contract, late payments, misuse of the property, or serious defects. Once the three-year period ends, termination becomes easier, provided the legal and contractual requirements are met.
Additional Practical Steps
Before renting out your home, it is wise to:
Photograph the property's condition before move-in.
Consider property insurance, which is recommended though not mandatory.
Ensure payment terms and responsibilities are clearly written.
Small precautions like these can prevent larger disputes later and make the rental experience smoother for both parties.
Property Management Options in Greece
Owners can manage a long-term rental themselves or hire a professional property management company. For foreign owners who are often away from Greece, professional management can be a convenient solution. Property managers can assist with tenant screening, inspections, repairs, and accounting. While management comes with a commission, it can save time, reduce risks, and help maintain the property's condition over the long term.
Conclusion
Long-term rentals offer stability and a steady income with less day-to-day involvement. For owners who want a reliable return without the demands of holiday letting, they are a practical choice. With the right lease and proper registration in place, a long-term tenancy can run smoothly for years. We have been guiding international property buyers in Greece since 1991, and we support owners through letting and management as well. If you are weighing up a long-term rental, we are happy to help you get the lease and the paperwork right.
Disclaimer: This content is for informational purposes only and does NOT constitute legal or tax advice. For any issues relating to specific cases, it is highly recommended to consult a real estate lawyer, an accountant, or a notary depending on your needs.
