Published on January 6, 2026

Athens has extended its ban on new short-term rental properties in central districts until 2026, aiming to address the city’s growing housing shortages. This decision comes as part of ongoing efforts to protect long-term residential spaces from being overtaken by the booming short-term rental market, which has exacerbated affordability issues for local residents. By delaying the expansion of these rentals, the city seeks to balance tourism growth with the need for accessible housing for its inhabitants.
Greece has made a significant decision to extend the ban on registering new short-term rental properties in central Athens, specifically within the first, second, and third municipal districts, until December 31, 2026. This decision, formally enacted through a Joint Ministerial Decision (JMD), comes as part of a broader initiative to tackle the pressing issues of housing shortages and the skyrocketing long-term rental prices in these high-demand areas.
This move builds on earlier restrictions put in place in 2025 and demonstrates the government’s commitment to finding a balance between promoting tourism and maintaining affordable housing for residents. The new measures are set to take effect starting January 1, 2025, and will continue through the end of 2026. The primary goal is to curb the impact of short-term rental platforms, such as Airbnb, which have increasingly contributed to a decline in available housing for local people in some of Athens’ most sought-after neighborhoods.
Under these new regulations, there will be no new registrations allowed in the Short-Term Stay Registry for properties located within the specified central districts of Athens. This means that any new properties wishing to be listed as short-term rentals will not be allowed to do so in these areas for the duration of the ban. This provision is intended to prevent further exacerbation of the already strained housing market, particularly in the central areas of Athens that attract heavy tourism demand.
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However, the new rules do not affect existing short-term rentals. Properties that have already been registered in the Short-Term Stay Registry prior to the ban will still be allowed to operate as short-term rentals throughout the ban period. These properties can continue to cater to tourists, and their operators can keep running their businesses as usual, as long as they remain compliant with the regulations in place. This provision is aimed at providing a degree of stability for those already invested in the short-term rental market while preventing further expansion in the affected areas.
In addition to the new registration ban, the government has introduced strict penalties for any violations of the regulations. The penalties are designed to ensure compliance and serve as a deterrent for anyone attempting to circumvent the rules.
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For the first offense, property owners or managers found violating the regulations will be required to pay a fine equal to 50% of the rental income earned from January 1, 2025, until the date of the inspection. The fine has a minimum threshold of €20,000, meaning that even if the 50% penalty does not reach that amount, the owner or manager will still be required to pay a minimum of €20,000. This hefty fine is meant to discourage illegal rentals and ensure that those who attempt to circumvent the law are met with serious financial consequences.
If a second offense is committed within the same tax year, the penalties become even more severe. The fine for a second offense is set at 100% of the rental income earned since the previous inspection, with a minimum fine of €40,000. This escalation in penalties reflects the government’s firm stance on short-term rental regulations and aims to ensure that repeat offenders face significant consequences for their actions.
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The fines collected from these violations will be considered public revenue and will be handled by the Independent Authority for Public Revenue (AADE), which is responsible for ensuring that the penalties are enforced and paid. This ensures that the financial burden of the fines is handled in a way that contributes to the public sector rather than benefiting any private entities. The fines are intended to discourage property owners, managers, or third parties from violating the law, while also serving as a tool to generate public funds.
The new regulations and penalties are a response to growing concerns that short-term rentals are contributing to the ongoing housing crisis in Athens, particularly in its historic and central districts. Over the past few years, these neighborhoods have seen a dramatic rise in property prices, making it increasingly difficult for local residents to find affordable housing. This situation has been exacerbated by the growing popularity of short-term rental platforms, which have taken many properties off the long-term rental market. As tourism continues to rise in Athens, particularly in the most desirable areas, the demand for short-term rentals has created an environment where the cost of living for locals has increased dramatically.
The government’s efforts to extend the ban and impose stricter regulations are part of a broader initiative to ensure that tourism growth does not come at the expense of residents’ ability to live and thrive in their own neighborhoods. By curbing the growth of short-term rentals in high-demand areas, the government hopes to alleviate some of the pressure on the housing market and make it easier for local residents to find affordable places to live.
This extension of the ban is also a reflection of the government’s ongoing commitment to balancing the needs of the tourism industry with the housing needs of residents. It recognizes that while tourism is a crucial sector for Greece’s economy, the welfare of local communities must be prioritized, especially in cities like Athens, where the influx of tourists has significantly affected the cost of living.
Athens has extended the ban on new short-term rentals in central districts until 2026 to address the city’s housing shortages and ensure that long-term residential spaces are preserved for local residents amid rising affordability concerns.
Greece’s extension of the short-term rental ban in central Athens is a key measure aimed at addressing the ongoing housing crisis in the city. The decision reflects the government’s commitment to ensuring that tourism does not undermine the ability of local residents to access affordable housing. With strict penalties in place and a clear commitment to maintaining a balanced approach to tourism and housing, this policy shift is an important step towards creating a more sustainable and equitable environment in Athens.
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