What Buyers Need to Know Before Investing

Athens continues to attract international visitors throughout the year, making short-term rental property an appealing investment. However, buying an apartment in a popular neighbourhood does not automatically mean that it can be legally and profitably operated as an Airbnb.

In 2026, investors need to examine not only the property’s location and potential income, but also its eligibility for short-term rental registration, operating costs and compliance requirements.

Check the Area Before You Buy

One of the most important changes affecting the Athens market is the restriction on new short-term rental registrations in the 1st, 2nd and 3rd municipal districts of the Municipality of Athens.

The restriction, initially introduced for 2025, continues during 2026. These districts include many central neighbourhoods traditionally popular with visitors and short-term rental investors.

This does not mean that property cannot be purchased in central Athens. It means that a buyer should not assume that a newly acquired apartment will automatically be eligible for a new Short-Term Rental Property Registry Number, known in Greece as an AMA.

Before signing a reservation agreement or purchase contract, the property’s exact address, registration status and intended use should be checked with a qualified accountant and lawyer.

An Existing Airbnb Listing Is Not Enough

A seller may describe an apartment as an “active Airbnb” or present previous booking income. While this information can be useful, it is not sufficient by itself.

The buyer should verify:

• whether the property is correctly registered;
• who holds and manages the existing registration;
• whether a new owner can legally continue the same activity;
• whether the building regulations contain restrictions;
• whether the property complies with the applicable safety and operational requirements;
• whether the income figures include platform commissions, utilities, cleaning, management and taxes.

The right to operate a short-term rental should be confirmed independently. It should never be assumed solely because the property has previously appeared on a booking platform.

Registration and Reporting Obligations

Short-term rental properties must generally be registered in the Greek Independent Authority for Public Revenue’s Short-Term Stay Property Registry. The registration number must be displayed in online advertisements.

The property manager must also submit a Short-Term Stay Declaration for each booking. According to the Independent Authority for Public Revenue, this declaration is normally due by the 20th day of the month following the guest’s departure.

These obligations apply not only to bookings made through major platforms, but also to qualifying short-term rentals arranged through other channels.

How Is Short-Term Rental Income Taxed?

The tax treatment depends on the owner, the number of properties and the services provided.

For an individual renting out up to two furnished properties without additional services other than bed linen, the income is generally treated as income from immovable property.

From the 2026 tax year, rental income is taxed according to the following bands:

• up to €12,000: 15%;
• €12,001–€24,000: 25%;
• €24,000.01–€36,000: 35%;
• above €36,000: 45%.

Income earned by an individual operating three or more short-term rental properties is treated as business income. Legal entities are also treated as carrying on business activity, regardless of the number of properties. Different VAT and accounting obligations may therefore apply.

The current tax bands and distinctions are explained by the Greek Ministry of Economy and Finance.

Because every investor’s tax position is different, projected net income should be calculated with a Greek accountant before the purchase.

Calculate the Real Return, Not Only the Nightly Rate

A high advertised nightly rate does not necessarily mean a high investment return.

A realistic calculation should include:

• seasonal occupancy;
• platform commissions;
• professional management fees;
• cleaning and laundry;
• electricity, water and internet;
• maintenance and replacement of furniture;
• insurance;
• communal building expenses;
• annual property tax;
• income tax and other applicable charges;
• periods when the property is unavailable.

It is also sensible to compare the projected short-term rental income with the income available from a conventional or medium-term tenancy. In some neighbourhoods, a stable long-term tenant may provide a more predictable return with fewer operating demands.

Look Beyond the Historic Centre

Restrictions in parts of central Athens do not eliminate investment opportunities across the wider city.

Areas outside the affected municipal districts may offer:

• lower purchase prices;
• better access to beaches or business districts;
• demand from professionals, students and families;
• stronger potential for medium-term rental;
• less dependence on seasonal tourism.

Transport connections, the condition of the building, natural light, noise, floor level and proximity to everyday services often matter as much as distance from the Acropolis.

The best investment is not necessarily the apartment in the most famous neighbourhood. It is the property whose legal status, location, purchase price and operating model work together.

Due Diligence Comes Before Decoration

It is easy to focus on renovation style, photographs and guest experience. But the first questions should be legal and financial:

1. Can this specific property be registered for short-term rental?
2. Are there restrictions in the building regulations?
3. Is its planning and ownership documentation in order?
4. What are the complete purchase and renovation costs?
5. What will the realistic net income be after expenses and taxes?
6. Would long-term or medium-term rental provide a better result?

These checks should be completed before committing to the purchase—not after receiving the keys.

Final Thoughts

Athens can still offer attractive opportunities for property investors in 2026, but short-term rental is no longer a strategy that should be based on location alone.

The safest approach is to choose the area carefully, verify the property’s legal and registration position, calculate the net return conservatively and keep an alternative rental strategy in mind.

At Your Greek Home, we help buyers evaluate properties in the context of their actual plans—whether they are looking for a home in Greece, a long-term investment or a property with short-term rental potential.

Considering an investment property in Athens? Contact us before you buy, and we will help you identify the questions that need to be answered for the specific property and location.

This article provides general information and does not constitute legal, tax or investment advice. Regulations and individual circumstances should be confirmed with qualified professionals before a transaction.