Greece Rental Income Tax Guide 2026 — Residential, Short-Term Airbnb & 3-Year Exemption

Overview — Progressive Rental Income Rates (7-45%)

Rental income (εισόδημα από ακίνητα) in Greece is taxed at a separate progressive rate scale, not as part of the general income:

• Net rental income: Gross rent minus deductible expenses (actual expenses plus the 5% deemed deduction for repairs) = net rental income.
• Rates for 2026: 7% on net income up to €12,000, 15% on €12,001-€35,000, 35% on €35,001-€100,000, 45% on income above €100,000. These rates apply to the aggregate net rental income from all properties.
• Separate tax base: The rental income is taxed independently of employment, pension, or business income. The rental income tax is calculated separately and added to the total tax liability in the annual return.
• Solidarity contribution: Rental income is added to total income for the calculation of the solidarity contribution (0-8% on total income above €12,000).

Deductible Expenses

Landlords can deduct the following expenses from gross rental income to arrive at net taxable income:

• ΕΝΦΙΑ (Unified Property Tax): The annual property tax paid by the owner is fully deductible against rental income.
• 5% Deemed Deduction (Απομείωση 5%): An automatic 5% deduction from the gross rental income for deemed repair and maintenance costs. This is available regardless of whether any actual repairs were carried out. The taxpayer can choose to deduct actual repair expenses instead of the 5% flat deduction, but the 5% deduction is simpler and often more beneficial.
• Actual repairs and maintenance: If the taxpayer opts out of the 5% deemed deduction, actual documented repair and maintenance costs are deductible (painting, plumbing repairs, appliance replacement, general maintenance). Improvement costs (που αυξάνουν την αξία) are not deductible — they are added to the property's cost basis.
• Insurance premiums: Fire, earthquake, flood, and liability insurance premiums for the rented property are deductible.
• Management fees: Property management company fees, real estate agent commissions, and legal fees for lease agreements are deductible.
• Depreciation: The building portion (not land) can be depreciated at 3-4% per year, deducted from rental income. The depreciation is calculated on the construction cost or the cadastral value of the building (excluding land).
• Interest on mortgage: Interest on a mortgage used to acquire or improve the rental property is fully deductible. Principal repayment is not deductible.
• Municipal fees and utility costs: If the landlord pays municipal cleaning/lighting fees or utility costs (water, electricity, gas) that are not reimbursed by the tenant, these are deductible.

Short-Term Rentals (Airbnb, Booking.com, VRBO)

Short-term rentals in Greece are subject to specific registration and reporting requirements, with the same tax rates applying:

• Tax rates: The same progressive rental income rates apply (7-45% on net income).
• Registration on ΜΗΤΕ (Short-Term Rental Registry): Every property offered for short-term rental must be registered on the ΑΑΔΕ's Short-Term Rental Registry (Μητρώο Ακινήτων Βραχυχρόνιας Διαμονής). Each property receives a unique Property Registration Number (Αριθμός Μητρώου Ακινήτου — ΑΜΑ).
• Display of ΑΜΑ: The ΑΜΑ must be displayed in all advertisements and listings (Airbnb, Booking.com, etc.). Failure to display the ΑΜΑ can result in fines of €5,000-€20,000.
• Reporting platform: Short-term rental income must be reported through the ΑΑΔΕ's dedicated platform (Μητρώο Βραχυχρόνιας Διαμονής) on a monthly or annual basis. The platform generates a tax certificate that is automatically populated in the Ε2 form.
• Withholding by platforms: From 2026, digital platforms (Airbnb, Booking.com, VRBO) are required to report rental income directly to the ΑΑΔΕ under the EU DAC7 directive. The ΑΑΔΕ receives data on host income, number of bookings, and property details.
• Municipal tourist tax: A daily municipal accommodation tax applies to short-term rentals: €0.50/night (November-February) or €1.50/night (March-October) for properties rented through short-term platforms. The tax is collected by the host and remitted to the municipality.
• Local restrictions: Athens, Mykonos, Santorini, and other popular destinations impose local restrictions on short-term rentals, including maximum rental days per year, registration limits, and zonal prohibitions. Check the specific municipal regulations.

3-Year Tax Exemption for New Rentals of Previously Empty Property

Greece introduced a significant tax incentive to encourage landlords to bring empty properties back into the residential rental market:

• Exemption: Landlords who rent out a property that was declared as empty (κενό) for at least 3 years benefit from a full exemption from income tax on the rental income for the first 3 years of the new lease.
• Conditions: The property must (a) have been declared as empty on the landlord's tax return for at least 3 consecutive tax years prior to the lease, (b) the lease must be for a minimum of 3 years, (c) the property must be used as the tenant's primary residence (not as a short-term rental or secondary residence), and (d) the lease must be registered with the ΑΑΔΕ.
• Scope: The exemption applies to the gross rental income (no tax is due). The landlord still pays ENFIA and municipal taxes. The exemption is claimed in the annual tax return by selecting the relevant code in the Ε2 form.
• Application: The exemption applies automatically provided the conditions are met. The landlord should keep evidence of the property having been declared empty for the prior 3 years.
• Examples: A property declared empty in the 2021, 2022, and 2023 tax years, leased on January 1, 2024 for 4 years as a primary residence — the rental income for 2024, 2025, and 2026 is exempt from income tax.

Imputed Rental Income (Τεκμαρτό Εισόδημα)

For owner-occupied property and property not rented, the ΑΑΔΕ imputes rental income based on the property's value:

• Owner-occupied primary residence: No imputed income arises for the taxpayer's primary residence.
• Secondary residences (not rented): An imputed rental income is calculated based on the property's cadastral value and location. The imputed amount is added to the taxpayer's income and taxed at the rental rates (7-45%). The imputed income approach has been phased down in recent years, but the ΑΑΔΕ retains the right to apply it where actual rental income appears artificially low.
• Objection: If the taxpayer can demonstrate that the property was genuinely unoccupied (vacant) during the year, the imputed income can be avoided by submitting a declaration of vacancy (δήλωση κενής κατοικίας) before the filing deadline.

Non-Resident Landlords

• Tax rates: Non-residents are taxed on Greek rental income at the same progressive rates (7-45%) as residents. The tax is calculated and filed through the annual tax return (Ε1 with Ε2).
• Tax representative: Non-resident landlords must appoint a tax representative (φορολογικός εκπρόσωπος) in Greece. The representative is responsible for filing the tax return and paying the tax.
• Withholding: If the tenant is a company or legal entity, the tenant must withhold 15% of the gross rent as a prepayment of the landlord's tax (παρακράτηση φόρου). The withheld amount is credited against the final tax liability.

Frequently Asked Questions

Can I deduct the 5% deemed deduction AND actual repair costs?

No. You must choose either the 5% deemed deduction (automatic, no documentation required) or deduct actual documented repair and maintenance costs. You cannot use both. The 5% deduction is generally simpler. For properties with minimal repair costs, the 5% deduction is advantageous. For properties requiring significant repairs in a given year, deducting actual costs may be more beneficial.

How do I report short-term rental income in my tax return?

Short-term rental income is reported through the ΑΑΔΕ's Short-Term Rental platform (Μητρώο Βραχυχρόνιας Διαμονής) on a monthly or annual basis. The platform generates a tax certificate that is automatically populated in the Ε2 form in TAXISnet. The net income from short-term rentals (gross rent minus platform fees, cleaning costs, and other direct expenses) is then taxed at the progressive rental rates of 7-45%.

Do I need to register for VAT if I rent property on Airbnb?

Residential rentals (including short-term Airbnb lettings) are generally exempt from VAT. As an individual landlord renting a few properties, you do not need to register for VAT. However, if you operate short-term rentals as a professional business (multiple properties, with additional services such as breakfast, cleaning, concierge), the ΑΑΔΕ may classify the activity as a hotel-style business, requiring VAT registration at the 13% reduced rate on accommodation services.

What is the 3-year tax exemption and how do I claim it?

The 3-year tax exemption applies to residential leases of previously empty property (declared empty for at least 3 years prior). To claim it: (a) ensure the property was declared empty in your Ε1 returns for the 3 prior tax years, (b) sign a lease of at least 3 years for use as the tenant's primary residence, (c) register the lease with the ΑΑΔΕ (the lease registration system), (d) in the Ε2 form, select the specific code for the exemption. The exemption applies automatically — the rental income is shown in the Ε2 but excluded from taxable income.

Can I offset losses from rental property against other income?

Losses from rental property (negative net rental income) can be carried forward for 5 years and offset against future rental income from the same or other properties. Rental losses cannot be offset against employment, pension, or business income. If the total net rental income across all properties is negative, the loss is carried forward to the next year.

Disclaimer

This guide is for informational purposes only and does not constitute legal or tax advice. Rental income tax rules depend on the type of rental, the property's location, and the landlord's personal circumstances. Consult a qualified λογιστής or φοροτεχνικός for advice tailored to your situation. The information reflects the rules applicable in 2026 as of the date of publication.