Greece is overhauling its short-term rental market with new regulations designed to enhance safety, address overtourism, and protect local communities. The Greek Parliament recently passed a bill introducing stricter property safety rules and banning the use of converted storage areas and former industrial units as rentals, aiming to curb the negative impacts of overtourism on local housing markets.
The new standards require accommodations to be primary-use spaces with adequate natural lighting, ventilation, and air conditioning, and to be insured against civil liability for damages or accidents. Properties such as basements and semi-basements lacking sufficient natural light are prohibited from being used as short-term rentals.
Property owners who fail to comply with these regulations face fines ranging from €5,000 to €20,000. The application of the new provisions for short-term rentals begins on October 1, 2025, allowing time for compliance.
"Our goal is the long-term, sustainable, and high-quality development of Greek tourism, not just breaking records every year," said Tourism Minister Olga Kefalogianni. She emphasized that the proposed rules are designed to ensure this vision. She underlined that sustainable tourism and environmental responsibility are central themes of the bill, which has received support from Greek tourism bodies.
Accommodations must also have a declaration from a licensed electrician, fire extinguishers, smoke detectors, leakage relays or anti-electrocution relays, and escape route signage. Properties are required to have pest control and extermination certificates, a first aid kit, and a guide with emergency contact numbers.
Inspections will be conducted to verify compliance with the new specifications. Property managers will receive a 10-day advance notice before inspections, allowing time to prepare the necessary documents. The Greek Police may assist with inspections if necessary, providing support at the time and place requested by the inspection teams.
"Inspections in properties that are also homes may not be feasible," argues the Greek Property Managers Association (PASIDA), who have criticized the new regulations, questioning their constitutionality and raising concerns about the practicality of inspections.
"A positive and necessary step for the upgrade of our hospitality services," acknowledged Stama Greece, the Association of Short-Term Rental Companies, referring to the establishment of specifications for short-term rentals. However, they highlighted challenges ahead due to increased fees and controls not required in other forms of hospitality. They emphasized, "Great investments that have already been made have been saved, as well as those that will be made in the future, while at the same time many spaces will retain the right to find a new use and not be left in neglect and the oblivion of time."
These measures come in response to record visitor numbers. In recent years, Greece has welcomed 35 million visitors, contributing to an anticipated tourism revenue of €22 billion. The surge in tourism has led to concerns about overtourism's impact on local communities. Neighborhoods in popular destinations like Athens and smaller Greek islands continue to see rental properties converted into holiday homes, exacerbating housing unaffordability.
A one-year ban on new short-term rentals is now in effect in Athens' most popular areas, such as Kolonaki, Koukaki, and Exarchia, to combat the negative impacts of overtourism on local housing markets. The ban aims to address the issue of holiday rentals outnumbering traditional housing and driving up rental prices for residents.
"You are allowing the concentration of short-term rentals in areas popular with tourists. That is drastically transforming neighbourhoods and displacing permanent residents," said left-wing lawmaker Kalliopi Vetta, addressing parliament.
Despite concerns, the government is proceeding with the new regulations in an effort to balance economic growth with housing accessibility. "The strategic goal of the Ministry of Tourism is the diffusion of visitor traffic in space and time, throughout the territory and the 12 months of the year," said Kefalogianni. She stated that the bill is part of a larger effort to ensure Greece continues to offer "reliable, safe, and quality hospitality services," aligning with her vision of "sustainable and qualitative development of Greek tourism."
While the new regulations aim to professionalize the market and ensure guest safety, critics believe the measures are excessive and harm small-scale operators while benefiting major hotel chains. The Greek government is sending a message that the era of unregulated tourism is over, as it follows the lead of other European cities like Barcelona and Amsterdam in regulating short-term rentals. These cities have faced housing crises and overtourism due to unregulated short-term rentals.
This article was written in collaboration with generative AI company Alchemiq