New Era for Greece’s Short-Term Rental Market: What Changes on 1 October 2025

From October 1, 2025, Greece’s short-term rental market will change forever. A sweeping reform under Law 5170/2025 introduces a new set of rules that will affect anyone renting property through Airbnb, Vrbo, Booking.com, and other platforms.

The government’s aim is to bring order, higher safety standards, and transparency to a sector that has grown explosively over the past decade — but for many hosts, especially expats and small-scale property owners, the new system comes with costs, paperwork, and tough decisions.

This guide unpacks the new law in detail: what is changing, what it means for property owners, how it compares to other European destinations, and how expat hosts can prepare.

Why this law matters

Greece has become one of the most popular short-term rental markets in Europe, thanks to booming tourism, relatively low property prices compared to other Mediterranean countries, and the appeal of platforms like Airbnb that made it easy for owners to rent out even a single spare apartment.

In Athens, Thessaloniki, Crete, Santorini, and dozens of islands, thousands of properties were taken out of the long-term rental market to cater to tourists.

This fueled a surge in housing costs for locals. At the same time, safety and quality were not always guaranteed — visitors sometimes found themselves in basement studios without windows, poorly wired apartments, or units without fire safety equipment. Hotels, heavily regulated and taxed, lobbied hard against what they saw as unfair competition.

The government’s answer is a complete reset of the rules, bringing STRs closer to the standards expected in regulated hospitality.

Only “primary-use” homes will qualify

The most fundamental change is that only primary-use residential properties can now be legally registered for short-term rentals. In practice, this excludes basements, storage units, garages, and any space not designed for living.

The law lays out specific criteria:

• Ceiling height: Main rooms must have at least 2.5 meters of clearance.

• Natural light: Bedrooms must have windows equal to at least 10% of the room’s floor space.

• Ventilation: Openings must provide ventilation equal to 5% of floor space.

• Air conditioning: All properties must be equipped with heating/cooling systems, except those above 600 meters altitude.

If your property fails these checks, it will be removed from the Short-Term Accommodation Property Registry (AMA), and once delisted, platforms will be required to block your listing.

Pro tip for expats: Many older apartments in Athens and Thessaloniki — especially semi-basements (ημιυπόγειο) or attic-style conversions — will fail these requirements. Have your property measured and certified before October.

Civil liability insurance becomes mandatory

Every property used as a short-term rental must carry civil liability insurance issued by a licensed Greek insurer. This covers accidents, injuries, or damages caused during a guest’s stay.

Until now, many hosts relied only on Airbnb’s “AirCover,” but platform protections are not recognized under Greek law. From October, you must have a standalone policy.

Our take: While this adds another annual cost (expect €150–400 depending on coverage), it provides peace of mind. For expats renting remotely, having Greek-legal coverage in case of an accident is essential.

Safety and health standards are tightened

The reform introduces a comprehensive list of safety and hygiene obligations that bring STRs closer to small hotels.

• Electrical certificate: Issued by a licensed electrician, confirming safety switches are installed.

• Fire safety: At least one 6 kg fire extinguisher per 100 m², smoke detectors in every bedroom and kitchen, emergency lighting near exits.

• Escape signage: Clearly marked escape routes.

• Pest control: A valid disinfestation certificate issued by a licensed company.

• First aid kit: Stocked to Greek standards with bilingual labeling.

• Emergency contacts: Posted list of local police, fire, ambulance, and nearest hospital.

For older apartments or traditional homes, compliance may require upgrades costing several thousand euros.

Pro tip: Remote expat owners should consider hiring a local property manager to coordinate upgrades and ongoing compliance.

Inspections and heavy fines

Enforcement is being taken seriously. Joint inspection teams from the Ministry of Tourism and the Independent Authority for Public Revenue (AADE) will carry out checks.

• Advance notice: Hosts will receive ten days’ warning.

• Verification: Inspectors will demand documents on the spot, including insurance and certificates.

• Random & complaint-based: Checks can be triggered by guest complaints or neighbor reports.

The fines are steep:

• First violation: €5,000

• Second violation (within a year): €10,000

• Repeated violations: up to €20,000 and removal from registry

Failure to pay within 15 days may result in forced collection.

Our take: Ten days’ notice gives time, but inspectors expect full readiness. If you live abroad, make sure a trusted manager has your compliance folder.

A registration freeze hits Athens first

For 2025 and 2026, no new short-term rental registrations will be issued in Athens’ 1st, 2nd, and 3rd municipal districts — essentially the historic center.

Existing operators keep their numbers, but new entrants are locked out.

Authorities are also considering freezes in other hotspots such as Santorini, Paros, Crete, Thessaloniki, and Halkidiki.

Pro tip: If you already hold a valid AMA number in a restricted area, treat it as an asset. Losing it through non-compliance could mean being excluded permanently.

Why Greece is tightening the rules

The government points to four main reasons:

• Guest safety: Too many properties lacked basic protections.

• Fairness: Hotels have argued STRs had an unfair advantage.

• Housing: In Athens and islands, STRs drained the long-term rental supply.

• Oversight: Linking STRs to the AMA registry and tax data makes it harder to operate illegally.

This isn’t unique to Greece. Spain, Portugal, and Italy have all limited STRs. France has capped short-term rentals at 120 nights per year for primary residences. Greece is adopting one of the toughest approaches.

Practical steps for expat hosts

To prepare, foreign owners should:

• Measure and confirm eligibility (ceiling height, windows, ventilation).

• Secure civil liability insurance from a Greek insurer.

• Schedule electrician and pest control visits.

• Install safety gear like detectors, extinguishers, and emergency lighting.

• Keep all certificates and policies in one compliance folder.

• Monitor news for updates on registration freezes.

Impact on the market

The law is expected to reshape Greece’s short-term rental market significantly.

• Smaller players squeezed out: Owners of borderline units may be forced to leave.

• Costs rising: Compliance may add €1,000–€5,000 in expenses per property.

• Supply contraction: Fewer listings could mean stronger bookings for compliant ones.

• Shift to long-term rentals: Some will pivot to year leases.

• Risk of underground market: Some may go off-platform, but inspections and fines make this risky.

Frequently asked questions for expat hosts

Can I still rent my basement apartment on Airbnb?
No. Semi-basements and non-residential spaces are excluded under the new rules.

Does Airbnb’s insurance cover me under Greek law?
No. You must hold a separate civil liability policy from a Greek insurer.

What if my property fails an inspection?
You may be fined and risk losing your AMA number. Without it, platforms must remove your listing.

Can I get an AMA number for my new Athens flat?
Not if it’s in the 1st, 2nd, or 3rd district. The freeze blocks all new registrations until 2027.

What about islands like Santorini or Paros?
No freeze yet, but the government is considering it. Monitor announcements closely.

Final thoughts

The new short-term rental law marks a turning point for Greece. It seeks to professionalize the sector, protect guests, and reduce pressure on housing markets, but it also risks pushing smaller hosts out of business. For expats, the message is clear: only those who treat short-term rentals as a professional operation will survive.

The upside? Fewer low-quality listings could mean stronger demand for those who stay compliant. For hosts who adapt early, the post-2025 landscape may prove more stable, predictable, and profitable. For those who don’t, fines and delisting await.

October 2025 is not the end of short-term rentals in Greece — but it is the end of the “anything goes” era.