Lawmakers in Greece have initiated discussions on proposed legislation aimed at tightening regulations for short-term rentals in response to a significant increase in tourism. The proposed changes include a ban on utilizing converted storage spaces and windowless basements for rental purposes.
The legislation targets renovated warehouses, underground areas, and former industrial properties, which will be removed from rental platforms. The proposed rules emphasize that rental spaces must be designated for primary residential use, featuring natural light, ventilation, and air conditioning.
Tourism Minister highlighted the importance of introducing minimum operational and safety standards to enhance the quality and sustainability of Greek tourism. The government aims to foster long-term development in the tourism sector, prioritizing quality over sheer volume.
Concurrently, Athens has imposed a one-year ban on new short-term rental registrations in popular districts, with fines of up to 20,000 euros for violations. While short-term rentals have significantly contributed to Greece's GDP, concerns have been raised about their impact on housing affordability.
The government is offering tax incentives to encourage property owners to shift away from short-term leasing, seeking to strike a balance between tourism benefits and housing accessibility. Greece anticipates record tourism revenue in 2024, with an estimated 35 million tourist arrivals.
A study revealed that the number of rooms available through short-term rentals in central Athens nearly doubled that of traditional hotels in 2023. Consequently, there are calls for stricter regulations on properties listed on online platforms like Airbnb.
During the legislative debate, opposition lawmakers criticized the government for neglecting the social implications and resource strain caused by the tourism boom. Concerns were raised about the transformation of neighborhoods and displacement of permanent residents due to the concentration of short-term rentals in tourist-heavy areas.
The draft legislation, which also includes detailed safety and operational standards for vacation rentals, is set for a vote later this month.
