Greece Short-Term Rental Market Hits One Billion Euros in 2025 Tourism Tax Revenues as Government Introduces New Restrictions to Address Housing Challenges

Greece’s short-term rental market continues to surge, with tax revenues from the sector nearing €1 billion in 2025, marking a 10.5% increase from the previous year. This surge reflects the rising popularity of platforms like Airbnb, particularly in high-demand tourist cities like Athens, Santorini, and Mykonos. However, the Greek government is introducing targeted restrictions in key urban areas to mitigate the impact of short-term rentals on housing availability, particularly in Athens and Thessaloniki, where the demand for rental properties has led to rising rents and limited affordable housing for locals.

Rising Popularity of Short-Term Rentals in Greece

The continued boom in short-term rental activity is a direct result of Greece’s growing appeal as a top European destination. With iconic cities and stunning islands attracting millions of tourists annually, Greece has seen a significant uptick in short-term rentals, especially in sought-after locations such as Athens, Santorini, Mykonos, and Crete. According to the latest figures, tax revenue from short-term rentals reached €973 million in 2025, up from €740 million in 2023, illustrating the increasing importance of this sector to the country’s economy.

The money generated from these rentals plays a key role in supporting Greece’s tourism infrastructure, contributing to the development of public services and the local economy. This has made the short-term rental sector a vital source of income, benefiting not only tourists but also businesses in hospitality, transportation, and local services.

Government Measures to Address Housing Pressures

While the short-term rental market continues to boost Greece’s economy, it has also raised concerns about housing availability for local residents. In response to the rising rents and housing shortages caused by the influx of tourists, the Greek government has implemented restrictions in certain high-demand areas. These measures aim to protect affordable housing for locals and prevent the further escalation of property prices.

In Athens, for example, the government has imposed a freeze on issuing new short-term rental registration numbers in specific areas, particularly in the 1st, 2nd, and 3rd municipal districts, which include some of the city’s most popular tourist attractions, such as the Acropolis and Plaka. The freeze will apply to new listings, although existing operators can continue renting their properties. Similarly, in Thessaloniki, a freeze on new short-term rental registrations will take effect from March 1, 2026, in high-demand zones like Aristotelous Square and Ladadika, areas known for their commercial and tourist significance.

These measures aim to balance the growing demand for short-term rentals with the need for long-term housing options for local residents. The government’s strategy includes monitoring and regulating the number of short-term rentals in key areas to ensure that housing markets remain accessible to those who live and work in these cities.

Impact on Property Owners and the Local Economy

For property owners in Athens and Thessaloniki, these new measures will introduce tighter controls on new short-term rental registrations. While existing operators can continue to list their properties, those wishing to enter the market in certain areas will face restrictions. The changes aim to strike a balance between the booming tourism sector and the need for affordable housing for the local population.

The measures are expected to have a significant impact on the housing market in Greece, particularly in cities where the tourism industry has rapidly expanded. However, by reducing the concentration of short-term rentals in certain areas, the government hopes to alleviate the pressure on local housing markets and support the long-term stability of the real estate sector.

Balancing Tourism Growth with Sustainable Housing Solutions

The rapid growth of the short-term rental market highlights the need for Greece to balance the economic benefits of tourism with the social and environmental impacts. The introduction of new regulations is part of a broader strategy to promote sustainable tourism practices that benefit both the tourism industry and local communities. The tax revenue generated from short-term rentals plays an important role in supporting the country’s tourism infrastructure, but the government’s focus is now on ensuring that the sector’s growth does not undermine the availability of housing for residents.

By introducing restrictions on short-term rentals in high-demand areas, Greece is taking a proactive approach to managing tourism growth in a way that benefits both tourists and residents. These measures reflect the government’s commitment to creating a sustainable tourism model that preserves the local community’s access to affordable housing while continuing to attract international visitors.

Looking Ahead: Future Developments in Greece’s Tourism Sector

As tourism continues to thrive in Greece, it is expected that more regulatory measures will be introduced to ensure that the benefits of the industry are shared across the country’s communities. The government’s efforts to manage short-term rentals are just one part of a broader strategy to ensure that Greece’s tourism industry remains sustainable, equitable, and responsive to the needs of both residents and visitors.

With continued investment in public infrastructure and a focus on balancing tourism with the preservation of local resources, Greece is well-positioned to maintain its status as one of Europe’s most popular destinations, while also ensuring that local communities continue to benefit from the economic opportunities provided by tourism.

Conclusion: A Balanced Approach to Tourism Growth in Greece

While Greece’s short-term rental market continues to generate impressive fiscal returns, the government’s recent measures to regulate the sector highlight the importance of managing growth responsibly. The introduction of restrictions in high-demand areas such as Athens and Thessaloniki aims to ensure that local residents have access to affordable housing while maintaining the tourism sector’s strength. As Greece continues to develop sustainable tourism strategies, the country is setting an example of how to balance economic growth with the well-being of its communities.

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