:
Greece: Prime minister Kyriakos Mitsotakis has announced measures aimed at addressing the impact of overtourism in certain areas of the country.
Greece received a record 36.1 million visitors in 2023, while arrivals rose 16 per cent to 11.6 million in the first half of 2024. The tourism sector generates around 20 per cent of the country’s GDP.
Holiday rentals increased by an annual average of 28 per cent from 2019 to 2023, while available short-term rental inventory doubled in the same period. Meanwhile, hotel inventory rose just 3.5 per cent in that period, according to recent data published in a Grant Thornton report for Greece’s Chamber of Hotels.
The government’s new strategy includes a temporary freeze on new short-term rental permits in neighbourhoods where STRs exceed five per cent of the total housing stock. This move marks a shift away from previously proposed caps on rental days, such as the 90-day limit, which has been scrapped.
The new plan will involve restrictions that are tailored to specific neighbourhoods, and aims to balance the presence of short-term rentals with long-term leasing options.
The government is also considering measures to incentivise long-term rentals including tax exemptions for property owners who transition from short-term to long-term leases. Homeowners who make their properties available for long-term rental for at least three years could receive a three-year exemption from income tax, provided their properties were either vacant throughout 2024 or previously listed for short-term rentals.
This initiative is part of a broader strategy to address Greece’s housing issues, as well as other effects of overtourism.
The government says it is “very concerned” about an influx of cruise passengers and will begin charging fees, Mitsotakis said during his annual speech at the Thessaloniki International Fair. It will also increase a tax related to the climate-crisis on accommodation.
The country will also expand its Golden Visa program to investors who are willing to put at least €250,000 into local startups. Foreigners were previously required to buy property to acquire the visa.
