The Complete Guide to Short-Term Rentals in Greece: Laws, Returns & Opportunities

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Introduction to Short-Term Rentals in Greece

Greece’s allure isn’t just a summer fling—it’s a year-round love affair for travelers worldwide. From the iconic white-washed buildings of Santorini to the historic streets of Athens and the verdant landscapes of property for sale in peloponnese, Greece offers more than just a vacation destination; it presents a compelling investment opportunity.

The short-term rental market in Greece has experienced a remarkable transformation over the past decade. What was once a modest supplementary income stream for property owners has evolved into a sophisticated, technology-driven sector reshaping the country’s tourism and real estate landscapes.

Consider this: In 2023, Greece welcomed over 32 million international tourists—nearly triple its population. This staggering influx has created unprecedented demand for accommodations beyond traditional hotels, propelling platforms like Airbnb and Booking.com to dominance in the Greek hospitality sector.

But here’s the real question—is this golden opportunity accessible to foreign investors? The short answer: absolutely, but with important caveats. This guide will navigate you through the essentials of establishing, operating, and maximizing returns from short-term rentals in Greece while staying compliant with increasingly complex regulations.

The Greek Legal Framework for Short-Term Rentals

Greek authorities have significantly evolved their approach to short-term rentals since 2018, when comprehensive legislation was introduced to bring structure to what was previously a largely unregulated sector. Let’s break down the current framework:

Property Registration Requirements

The foundation of legal short-term rental operation in Greece is proper registration. Here’s what you need to know:

• Property Registration Number (AMA): Every property operated as a short-term rental must obtain a unique AMA number from the Greek Tax Authority (AADE). This number must be displayed prominently in all online listings and advertisements.
• Electronic Registry: Property owners must register with the Short-Term Rental Property Registry through the AADE online platform. The process requires submitting property details, ownership documentation, tax information, and property specifications.
• Operational Limitations: Properties can only be rented for a maximum of 90 days annually in most areas (60 days in islands with fewer than 10,000 residents), unless the owner registers as a business entity, which entails additional requirements.

The penalties for non-compliance are significant—starting at €5,000 for failing to register and potentially reaching €20,000 for repeat violations. These aren’t just paper threats; Greek authorities have been increasingly vigilant, conducting regular audits of online platforms.

Taxation and Financial Obligations

Understanding the tax implications is crucial before diving into the Greek short-term rental market:

• Income Tax: Rental income is taxed on a progressive scale:
  • Up to €12,000: 15%
  • €12,001 to €35,000: 35%
  • Above €35,000: 45%
• VAT Requirements: If annual rental income exceeds €10,000, you may be required to register for VAT (currently 13% for accommodation services).
• Property Tax (ENFIA): All property owners in Greece must pay the annual ENFIA tax, calculated based on multiple factors including property size, location, and features.
• Overnight Stay Tax: Since 2018, a per-night tax ranging from €0.50 to €4.00 must be collected from guests, based on the property’s official classification.

“The tax framework for short-term rentals in Greece has become increasingly sophisticated,” notes Maria Papathanasiou, a tax attorney specializing in tourism investments. “While it may seem complex, it actually creates a clearer playing field that legitimizes the sector and provides certainty for serious investors.”

Market Analysis & Potential Returns

Beyond compliance lies the fundamental question: Is it worth it? Let’s examine the numbers.

Regional Performance Comparison

Greece offers remarkably varied investment opportunities, each with distinctive return profiles:

*ADR = Average Daily Rate

These figures reflect 2023 market performance and vary based on property quality, exact location, and management efficiency.

Managing Seasonality

Seasonality remains one of the greatest challenges—and opportunities—in the Greek rental market. While islands like Mykonos can command extraordinary premiums during summer months, their off-season performance can be underwhelming.

Athens and Thessaloniki present stronger year-round profiles, with lower seasonal fluctuations. The mainland generally offers more balanced occupancy throughout the year.

Smart investors develop season-specific strategies:

• Peak Season (June-September): Premium pricing, minimum stay requirements, and advance booking incentives
• Shoulder Seasons (April-May, October): Competitive pricing, targeted marketing to specific traveler segments (e.g., retirees, digital nomads)
• Off-Season (November-March): Long-term rental options, significant discounts, promotion of indoor amenities and local winter experiences

Top Locations for Short-Term Rentals

Location remains the paramount factor in rental performance. Here’s a curated analysis of Greece’s most promising investment destinations:

Athens: The capital’s short-term rental market has shown remarkable resilience. Neighborhoods like Koukaki, Plaka, and Monastiraki deliver strong year-round performance due to proximity to major attractions. Consider emerging areas like Metaxourgeio and Keramikos, where property acquisition costs remain reasonable while rental demand grows.

Peloponnese: This mainland peninsula offers compelling value for investors seeking balance between acquisition costs and returns. Coastal areas near Nafplio, Kalamata, and Porto Heli have seen increasing demand from international travelers seeking authentic Greek experiences with modern comforts. Areas with property for sale in peloponnese often come with favorable pricing compared to the islands.

Cycladic Islands: While Mykonos and Santorini continue to dominate with premium returns, their high barrier to entry (property acquisition costs frequently exceed €6,000/sqm) makes them inaccessible to many investors. Consider “secondary” Cycladic islands like Paros, Naxos, and Milos, which offer similar aesthetic appeal with more reasonable entry points and growing demand.

Crete: Greece’s largest island provides diverse investment options, from the developed northern coast (Chania, Heraklion) to more authentic southern regions. Its extended tourist season (April through October) and robust infrastructure make it particularly suitable for international investors seeking more hands-off opportunities.

Case Studies: Success Stories in Greek Vacation Rentals

Let’s examine two contrasting success stories that illustrate different approaches to the Greek market:

Case Study 1: The Athens Urban Apartment Portfolio

Dimitri, a Greek-American investor, acquired four apartments in Athens between 2015-2018, focusing on properties needing moderate renovation in central neighborhoods. His investment thesis:

• Total Investment: €380,000 (purchase and renovations)
• Average Annual Gross Revenue: €58,000
• Operating Expenses: €21,000 (including management fees, maintenance, utilities, and taxes)
• Net Annual Return: 9.7%

Key Success Factors:

• Strategic renovations focusing on modern conveniences while preserving historical character
• Year-round appeal through heating/cooling systems and soundproofing
• Flexible pricing strategy with significant seasonal adjustments
• Professional property management (worth the 18% fee, according to Dimitri)

“Athens was undervalued following the financial crisis,” Dimitri explains. “The key was seeing beyond the economic headlines to the enduring appeal of Athens as a cultural destination. The short-term rental framework, once I understood it, was actually straightforward to navigate.”

Case Study 2: The Cretan Villa Experience

Helena, a British investor, purchased a traditional stone house in southern Crete in 2019 for €220,000, investing an additional €130,000 in renovations to create a luxury 3-bedroom villa with a pool.

• Total Investment: €350,000
• Average Annual Gross Revenue: €42,000 (over 25 weeks of operation)
• Operating Expenses: €13,500
• Net Annual Return: 8.1%

Key Success Factors:

• Authentic architecture with modern luxury amenities
• Personal use during shoulder seasons
• Focus on high-value weeks rather than maximizing occupancy
• Strong relationships with local service providers

“I wanted a place that could generate returns while also serving as our family’s Mediterranean base,” Helena shares. “The registration process seemed daunting initially, but our local lawyer handled everything efficiently. The biggest challenge was finding reliable local support for guest management, but once established, that network has been invaluable.”

Practical Tips for Short-Term Rental Owners

Beyond regulations and market analysis, operational excellence determines your ultimate success:

1. Leverage Local Knowledge: Partner with local professionals who understand the nuances of Greek property management, guest expectations, and maintenance requirements. While international property management companies operate in Greece, those with strong local teams typically deliver superior results.
2. Design for Your Target Market: Greek vacation properties attract diverse audiences. A minimalist, Instagram-worthy design works brilliantly in Cycladic islands, while more traditional aesthetics may resonate better in mainland locations. Research your competition thoroughly before finalizing your approach.
3. Optimize Your Listings: Greek rental listings compete in a crowded marketplace. Invest in professional photography that captures not just your property but the lifestyle it enables. Describe neighborhood amenities, local experiences, and authentic touches that distinguish your property.
4. Master Pricing Strategy: Greek rental markets show extreme seasonal variation. Sophisticated dynamic pricing tools like PriceLabs or Beyond can help maximize revenue by adjusting rates based on demand patterns, local events, and competitive positioning.
5. Cultivate Repeat Business: With acquisition costs for new guests continuously rising on major platforms, direct bookings and repeat visitors are increasingly valuable. Consider offering returning guest discounts and maintaining direct communication channels with past guests.

Common Challenges and How to Overcome Them

While the Greek short-term rental market offers compelling opportunities, investors should be prepared for several common challenges:

Regulatory Complexity

The regulatory landscape continues to evolve, with municipalities occasionally implementing local restrictions beyond national requirements.

Solution: Work with a Greek lawyer specializing in tourism investments to stay ahead of regulatory changes. Budget for occasional compliance updates. Joining local property owner associations can provide early warnings about pending regulatory shifts.

Seasonal Cash Flow Gaps

Many Greek destinations experience dramatic seasonal fluctuations in demand, creating cash flow challenges during off-periods.

Solution: Structure your financial planning around these known patterns. Consider offering significant discounts for longer off-season stays rather than leaving properties vacant. Some investors offer “winter rates” that essentially cover costs while maintaining calendar flexibility for occasional higher-rate bookings.

Remote Management Challenges

For foreign investors, distance creates operational complexities.

Solution: Build redundant support systems. Don’t rely on a single property manager or service provider. Develop relationships with multiple local contacts who can assist during emergencies. Smart home technology can help monitor properties remotely and address some issues without on-site intervention.

Your Greek Rental Investment Roadmap

The Greek short-term rental market continues to evolve, presenting both challenges and opportunities for forward-thinking investors. Here’s your strategic roadmap for navigating this dynamic landscape:

1. Begin with Compliance First: Unlike many markets where regulations are loosely enforced, Greece has committed substantial resources to short-term rental oversight. Establish your legal foundation before operational concerns.
2. Consider Location Diversification: The most resilient portfolios in Greece span multiple market types—perhaps combining an Athens apartment for year-round income stability with a seasonal island property for premium summer returns.
3. Embrace Technology Selectively: While smart locks, automated check-ins, and property monitoring systems add convenience, remember that many travelers choose Greece for its authentic, human-centric hospitality. Balance automation with personal touches.
4. Think Beyond Traditional Platforms: While Airbnb and Booking.com dominate the Greek market, specialized platforms targeting specific traveler segments (luxury, family, adventure) can deliver higher-quality bookings with less price sensitivity.
5. Plan for Sustainability: Greece is increasingly promoting sustainable tourism initiatives. Properties with water-saving features, energy efficiency, and authentic connections to local communities will likely gain competitive advantages as regulations evolve.

Remember that Greek vacation rental success isn’t merely about property acquisition—it’s about creating experiences that resonate with travelers seeking both the timeless charm and modern comforts of this extraordinary destination.

As you consider your investment journey in Greece, contemplate this: Are you creating just another rental property, or are you developing a distinctive experience that connects guests to the authentic essence of Greek hospitality? Your answer will likely determine not just your financial returns, but your satisfaction as a property owner in one of the world’s most beloved destinations.

Frequently Asked Questions

Can foreigners own and operate short-term rentals in Greece?

Yes, foreigners can legally own and operate short-term rentals in Greece. However, non-EU citizens may face additional requirements, including obtaining a Greek tax number (AFM) and, in some border areas, special permissions. The fundamental registration and taxation requirements apply equally to Greek citizens and foreign investors. Many international investors operate successfully in the Greek market, especially when working with local legal advisors to navigate the initial setup process.

How has COVID-19 impacted the Greek short-term rental market?

The pandemic initially created significant disruption, with occupancy rates dropping by over 70% in 2020. However, Greece’s short-term rental market has demonstrated remarkable resilience, with 2023 data showing a full recovery and even growth compared to pre-pandemic levels. The crisis accelerated several trends, including enhanced cleaning protocols, longer average stays, and increased domestic tourism. Properties offering privacy, outdoor spaces, and work-friendly amenities have recovered more quickly than urban micro-apartments previously targeting international city-breakers.

What are the hidden costs of operating a short-term rental in Greece?

Beyond the obvious expenses (mortgage, utilities, platform fees), investors should budget for: 1) Utility volatility—Greek electricity prices can fluctuate dramatically; 2) Increased maintenance—Mediterranean coastal properties often require more frequent repairs due to salt air and intense summer usage; 3) Property management premiums—quality management in tourist areas commands higher fees (typically 20-30%) than in many Western markets; 4) Community fees (koinochrista) in apartment buildings; and 5) Seasonal staffing challenges that may require premium wages during peak periods. A comprehensive budget should include a 10-15% contingency for these often-underestimated expenses.

Article reviewed by Jean Dupont, Institutional Investment Advisor | ESG & Impact Investing Pioneer | Aligning Profit with Purpose for Pension Funds, on May 5, 2025