Starting October 1, 2025, Greece is introducing comprehensive regulations for short-term rental properties, transforming the landscape for platforms like Airbnb. These new rules aim to ensure safety, quality, and compliance with local standards, mandating everything from natural lighting and ventilation to liability insurance and fire safety measures. Managers of short-term rental properties could face hefty fines ranging from €5,000 to €20,000 if they fail to comply with new minimum property standards required for rentals.
The new regulations will officially take effect on October 1, 2025. However, property managers must prepare in advance to make necessary adjustments to avoid penalties. Inspections will be conducted by joint teams from the Ministry of Tourism and the IAPR. In addition to assessing compliance with short-term rental standards, these teams will also perform on-site tax audits.
What Are the New Standards for Short-Term Rental Properties?
Starting October 1, 2025, short-term rental properties must meet the following minimum standards:
Primary Use and Basic Amenities:
- Properties must be classified as primary-use spaces with natural lighting, ventilation, and functional air conditioning.
Liability Insurance:
- Property managers are required to secure liability insurance to cover damages or accidents during a tenant’s stay.
Safety Certifications:
- Electrical compliance statements signed by licensed electricians.
- Installation of fire extinguishers and smoke detectors.
- Circuit breakers or ground fault interrupters to prevent electrical hazards.
- Clearly marked emergency exits for safe evacuation.
Health and Safety Measures:
- Pest control and disinfection certificates, ensuring a hygienic environment.
- First aid kits readily available for emergencies.
- Display of emergency contact numbers for immediate assistance.
These measures aim to enhance the safety and quality of short-term rental properties, ensuring they meet comparable standards to other forms of accommodation like hotels.
How Will Inspections Be Conducted?
To ensure compliance, inspections will be carried out by teams from the Ministry of Tourism and the IAPR. These inspections will involve:
Advance Notification:
- Property managers will receive at least 10 days’ notice before an inspection. During this time, they must prepare the necessary documentation to prove compliance with the new standards.
On-Site Inspections:
- Inspectors will evaluate whether properties meet the required standards.
- Tax audits may also be conducted simultaneously to verify the accurate declaration of rental income.
Authority to Enforce:
- Inspectors will carry official identification and written orders specifying the scope of the inspection.
- If required, police assistance can be sought to ensure access to the property.
Follow-Up Inspections:
- If a property is found non-compliant during an initial inspection, follow-up inspections may be conducted. Repeat offenses will result in progressively higher fines.
What Are the Penalties for Non-Compliance?
The fines for non-compliance are as follows:
First Violation:
- A fine of €5,000 is imposed if a property fails to meet the standards or if a manager obstructs the inspection process.
Second Violation (Within One Year):
- The fine doubles to €10,000 for a second offense detected during a follow-up inspection within 12 months.
Third and Subsequent Violations:
- Fines quadruple to €20,000, emphasizing the seriousness of repeated non-compliance.
All fines must be paid within 15 calendar days. Failure to pay may result in enforcement actions, including asset seizures by the authorities.
What Are the Goals of the New Legislation?
The primary objectives of the legislation are:
Enhancing Safety and Quality:
- Establishing minimum safety and quality standards for short-term rental properties to ensure guest well-being.
Creating a Fair Competitive Environment:
- Addressing concerns about unfair competition between unregulated short-term rentals and hotels. By imposing similar requirements, the government aims to level the playing field.
Sustainable Tourism Development:
- Encouraging practices that support local communities and align with European standards for sustainable tourism.
Tourism Minister Olga Kefalogianni has emphasized that these reforms are critical for improving Greece’s tourism infrastructure while preserving the integrity of local neighborhoods.
What Challenges and Criticism Has the Industry Raised?
While the hospitality industry broadly supports the new measures, citing long-standing concerns about unfair competition, there are notable criticisms:
Practical Challenges for Older Properties:
- Konstantinos Kiamos, vice president of STAMA Greece, pointed out that certain safety requirements, such as fire exits, may not be feasible for all types of properties, especially older buildings in traditional neighborhoods.
Potential Impact on the Housing Market:
- Industry representatives have raised concerns about balancing these regulations with the broader housing needs of local communities. Stricter regulations might discourage landlords from participating in the short-term rental market, potentially affecting housing availability and prices.
What Does the Future Hold for Greece’s New Short-Term Rental Laws?
The introduction of stricter standards for short-term rental properties in Greece represents a pivotal effort to ensure safety, quality, and fairness within the hospitality sector. These regulations aim to create a level playing field between short-term rentals and traditional accommodations, such as hotels, by enforcing clear guidelines for property managers, rigorous inspections, and penalties for non-compliance. While these measures address long-standing concerns around guest safety and tax evasion, they also raise challenges for older properties and the broader housing market. Importantly, these reforms reflect Greece’s commitment to sustainable tourism and community preservation, ensuring the benefits of tourism are shared equitably.
However, it is important to acknowledge that this law is still in its early stages, and its practical impact remains to be seen. The true effectiveness of these measures will depend on their implementation, enforcement, and how property owners, managers, and local communities adapt. Only time will reveal whether these reforms achieve their intended goals or require further adjustments to address unforeseen challenges.
