Greece Bans New Short-Term Rentals in Athens

Starting January 1, 2025, the Greek government will impose a one-year ban on new short-term rental licenses in three central districts of Athens to alleviate the housing crisis exacerbated by platforms like Airbnb. Tourism Minister Olga Kefalogianni indicated that the ban might be extended, as the housing market faces pressure from rising living costs and increasing short-term rental conversions. In tandem with the ban, taxes on short-term rentals will rise significantly, with a new daily rate of 8 euros from April to October, aiming to address the financial impacts of climate disasters. The government expects tourism revenue to reach a record €22 billion in 2024, highlighting the need for a balance between tourism benefits and local housing needs. This decision reflects a growing trend among European tourist destinations to regulate short-term rentals amidst concerns of over-tourism and housing shortages. The situation will be reassessed after the initial year to determine the effectiveness of these measures.