Short answer:
Short-term rentals in Greece are suitable for properties in tourist areas and can generate higher income, but require active management. Long-term rentals are suitable for investors who prefer stability, less hands-on management, and predictable cash flow over time.
When it comes to real estate investments in Greece, the local market offers two main investment strategies: short-term rentals and long-term rentals. While each option has its own unique advantages and disadvantages, choosing between them requires a deep understanding of the local market, current trends, and recent regulatory changes.
Short-term rentals: High potential alongside significant challenges
Short-term rentals, primarily through platforms like Booking and Airbnb, have become an extremely popular option in tourist areas across Greece. The potential for short-term rentals is significant, thanks to more than 8 million tourists annually, with Athens being the only city in Greece where tourism thrives in both winter and summer. The main advantage is the high potential return, which can reach an estimated 8–10% per year in sought-after areas like Athens. The flexibility in managing the property allows owners to adjust prices seasonally and even use the property personally during certain periods.
In addition, short-term rentals allow you to maximize your financial potential during periods of high demand, such as festivals, sporting events, or holidays. The increased demand during the tourist season makes it possible to raise prices significantly and achieve a higher return on investment.
However, alongside the advantages, there are significant challenges. First, income stability—there may be months with 80% occupancy and others with 40% occupancy—meaning that income is not as consistent as with long-term rentals. Furthermore, short-term rentals in Greece require intensive management in terms of time and effort for cleaning, maintenance, and customer service. Given the frequent turnover of guests, renting an apartment for short-term stays in Greece is likely to result in increased wear and tear and faster deterioration of the property.
The new regulations impose significant restrictions, stemming from pressure on the Greek government to regulate the short-term rental market, which is perceived as unregulated, along with direct opposition to the activity, particularly from local communities where apartment rentals are changing the character of their lives, and stakeholders in the hotel industry facing increased competition as a result. Therefore, it is essential to review the regulations periodically and determine whether you can rent out your apartment on a short-term basis.
Long-term rentals: Stability as the key to a safe investment
Long-term rentals offer significant advantages to investors seeking stability. The steady, predictable income reduces financial risk, and managing the property requires less day-to-day involvement. Yields on long-term rentals range from approximately 4% to 6% per year, according to estimates—figures that are lower than those for short-term rentals but more stable over time.
Another significant advantage is reduced wear and tear on the property. Long-term tenants tend to take better care of the property and treat it as their home, which leads to lower maintenance costs over time. In addition, long-term rentals require less investment in furnishing and equipping the apartment.
In addition, the supply of new buildings throughout Greece is low, so apartments intended for long-term rental in these buildings are rented out relatively quickly.
The main drawback is the limited flexibility—it is more difficult to adjust prices or use the property for personal purposes. Additionally, there is a risk of problematic tenants who may fail to make payments or cause damage to the property. It is also important to take this into account and secure appropriate collateral.
In addition, generally speaking, if the apartment is located in an area with a saturated and competitive market, this may make it difficult to find tenants or get a good price.
Another point to consider is that, under the law, tenants in Athens have the option of a 3-year lease (a positive factor for those seeking stability).
Target Audience and Pricing in the Emerging Market
The target audience differs significantly between the two strategies. In short-term rentals, tourists are the primary target audience, especially during the summer season and in tourist areas. These are mainly Western European and American tourists seeking an authentic experience who are willing to pay a premium for a central location and comfort.
In contrast, long-term rentals are primarily aimed at students, families, and local workers, especially in major cities such as Athens and Thessaloniki. This demographic is looking for stability and affordable prices, and is willing to commit to longer-term leases.
Prices vary depending on location and season. In Athens, the average monthly rent for long-term rentals ranges from €350 to €650, depending on the size and location of the property, according to numbeo.com. For short-term rentals, prices can reach €120 per night or more during peak season in sought-after areas, on average.
Property Management and Operating Costs
Managing a rental property requires resources and time, and many people choose to use property management companies. Costs range from 10% to 15% of annual rental income, with services including tenant screening, rent collection, handling repairs, and routine maintenance. For short-term rentals, costs may be higher due to the high turnover of tenants and the need for more frequent cleaning and maintenance.
Management companies offer comprehensive services that include property marketing, professional photography, dynamic pricing based on seasonality and demand, and handling all aspects of communication with tenants. For short-term rentals, these services also include booking management, guest check-in, cleaning between guests, and managing reviews and feedback.
Regulation and Taxation: Significant Changes in the Market
When selecting a property for short-term rental in Greece, property owners must register the property with the National Registry of Short-Term Rentals and obtain a unique registration number (AMAA). Failure to register a property in the short-term rental registry will result in a fine of 50% of the annual income (minimum €5,000).
The new legislation, which took effect at the beginning of 2024 (Law 5073/2023), has a particular impact on short-term rentals. In addition to limiting the number of properties, new tax requirements have been introduced, including a 0.5% residence tax on income for non-residents, as well as VAT and classification as a business for owners of three or more properties. In certain areas, such as Mykonos and Santorini, the restrictions are even stricter than 90 days per year, with rental days limited to 60 days per year.
In addition, Athens has imposed a one-year ban on the registration of new short-term rental apartments in certain areas, effective January 1, 2025.
The tax brackets for rental income are 15% for amounts up to €12,000, 35% for amounts between €12,001 and €35,000, and 45% for amounts above that.
All tax and regulatory information is current as of January 2025 – it is important to stay informed of any changes or updates.
Failure to comply with Greek government regulations may result in heavy fines and penalties, particularly in cases of failure to report income or register the property.
It is also important to note that properties purchased under the "Golden Visa" program may not be used for short-term rentals.
Long-term rentals, by comparison, are subject to fewer regulatory restrictions, which is a significant advantage for investors who prefer a more stable environment. However, tenant protection laws and restrictions must still be taken into account.
Over the past year (January 2025–January 2026), the rental market in Greece has undergone dramatic changes following stricter regulations on short-term rentals (STR), including a one-year ban on new registrations in Athens starting in January 2025, new regulations from July 2025 taking effect in October 2025 with strict requirements for safety, insurance, electrical and pest control certificates, and a complete ban on STRs in Golden Visa properties (Law 5100/2024). Nevertheless, the STR market grew in 2025, with the number of properties rising from 213,000 to 247,000 and bed capacity reaching 1.08 million, thanks to strong tourism demand, but with higher gross yields (8–15% in central Athens) but regulatory risks and lower occupancy rates (70–80%). In contrast, long-term rentals (LTR) have become more attractive in major cities such as Athens and Thessaloniki, where a housing shortage and rising prices (a 6–9% increase in housing prices) are driving high occupancy rates (90–97%) and stable yields (4–7% gross, 3.5–5% net), making them more suitable for investors seeking stability over high risk.
Tip for Investors
The choice between short-term and long-term rentals in Greece depends on several key factors: the property’s location, investment objectives, the desired level of involvement in management, and the ability to handle risks and uncertainty. While short-term rentals offer the potential for higher returns, especially in tourist areas, long-term rentals provide stability and a steady income with less management complexity.
New investors in the Greek market are advised to consider starting with long-term rentals, particularly in stable urban areas. Once they have gained experience and knowledge of the local market, they may consider transitioning to short-term rentals or combining both strategies within their investment portfolio. In any case, it is essential to stay up to date on regulatory changes and market trends to ensure long-term success.
The information presented in this article, including price comparisons, market research, estimated returns, and future projections, is intended for general informational purposes only and does not constitute professional advice, financial advice, investment advice, real estate advice, or a substitute for personalized advice provided by a qualified professional. The data presented, including future projections or estimated returns, is based on various sources of information, including estimates and simulations, and does not guarantee actual results.
