Greece Tightens Short-Term Rental Rules to Protect Tourists and Locals

31
Jan 2025

Greece is introducing new rules to regulate its growing short-term rental market. 

Starting October 1st, 2025, the government will require stricter safety measures and address the impact of overtourism. These changes aim to promote safer tourism and protect local communities.

Stricter safety standards for rentals

The new rules add clear requirements for short-term rentals.

Properties must have proper natural light, ventilation, and air conditioning to ensure guest comfort. Hosts must install smoke detectors, fire extinguishers, and escape signs, and provide certification from a licensed electrician.

Civil liability insurance is required to cover accidents or damages, along with a pest control certificate, a first aid kit, and an emergency contact guide. These rules aim to improve safety and protect guests during their stay.

Olga Kefalogianni, Greece’s Minister of Tourism, described the legislation as a step toward offering “reliable, safe, and quality hospitality services.”

Under the new rules, not all properties qualify for short-term rentals.

Industrial spaces and warehouses can still be rented if they meet safety standards, but basements and semi-basements without enough natural light are prohibited. This rule focuses on guest comfort and supports Greece’s goal of sustainable tourism.

The Ministry of Tourism has set up an inspection system to enforce the rules.

Violations will result in a €5,000 fine, which will double for repeat offenses. A spokesperson said the strict enforcement is meant to protect both visitors and locals from poor-quality rentals.

Balancing tourism growth, local needs

The new regulations also address the broader effects of short-term rentals, including their impact on local housing.

In popular Athens neighborhoods like Kolonaki, Koukaki, and Exarchia, a one-year freeze on new short-term rental registrations began on January 1st, 2025.

This step responds to a sharp decline in affordable housing, which has disrupted residents’ lives. Property owners who break this rule will face fines of €20,000.

The government is also raising taxes on short-term rentals and hotels. From April to October, the daily tax for rentals will increase from €1.50 to €8, and from €0.50 to €2 during the winter months.

These measures aim to reduce overtourism, which has strained resources in destinations like Mykonos and Santorini.

Cruise ship visitors will also pay additional taxes under a law passed in December, reflecting the government’s focus on sustainability.

A narrow street in Mykonos, Greece, lined with white buildings under a bright blue sky, with a sign reading "ANIMA MYKONOS."

(Image courtesy of DanaTentis via Pixabay)

Mixed reactions to the legislation

Major tourism organizations support the new measures, but not everyone agrees.

The Greek Property Managers Association (PASIDA) has criticized the law, questioning whether it is constitutional. They also raised concerns about inspections in properties that double as family homes, arguing that enforcement could be difficult.

Despite the criticism, Minister Kefalogianni highlighted the broader benefits of the new rules. She stated, “The regulations meet the requirements of the time and represent another step toward sustainable and qualitative development.”

A ripple effect for travelers, migrants

The new rules in Greece will affect different groups of visitors in various ways.

Short-term tourists may face higher rental prices as hosts pass on the increased costs of meeting the new standards.

However, these changes focus on quality and safety, offering tourists a more reliable and secure lodging experience. This could appeal to those willing to pay more for peace of mind.

Long-term visitors, like digital nomads who depend on affordable and flexible housing, may struggle with fewer options as stricter rules and higher taxes limit short-term rental availability.

Migrants entering the European Union (EU), especially those passing through Greece, might feel indirect effects from these regulations. Greece’s focus on sustainable tourism reflects the EU’s broader goal to manage resources and support local communities.

The upcoming European Travel Information and Authorization System (ETIAS), set to launch sometime in 2026, will further regulate travel to Schengen countries like Greece. 

While the ETIAS focuses on pre-screening travelers, it complements Greece’s efforts to improve oversight of short-term rentals. Together, these measures support the EU’s aim for more structured and sustainable travel policies.

A scenic view of Santorini, Greece, with white buildings, blue doors, pink flowers, and the Aegean Sea in the background.

(Image courtesy of Michelle Raponi via Pixabay)

A broader message on managing migration

Greece’s new tourism regulations reflect wider trends in EU immigration policy. By focusing on sustainable development and resource management, these rules aim to balance economic growth with the well-being of local communities.

Other EU countries dealing with overtourism and housing shortages may adopt similar measures, using local laws to influence migration patterns. 

Stricter housing rules could make popular areas less accessible to low-income migrants, which may affect settlement trends.

At the same time, stabilizing housing markets and improving local conditions could ease tensions between migrants and residents, a concern in many parts of Europe.

Greece’s actions highlight a larger message for EU policymakers: addressing tourism challenges can help balance migration and promote economic stability across the region.

Looking ahead

Greece’s new rules aim to balance tourism growth with the needs of local communities. By tackling safety issues, housing shortages, and environmental concerns, the country is reshaping the role of short-term rentals in its tourism model.

While challenges may arise, these reforms show a clear commitment to improving life for both visitors and residents.