How Greece is trying to put the brakes on Airbnbs with new legislation

Lawmakers in Greece are debating tough new rules for holiday rentals in a bid to crackdown on overtourism.

Under the proposed changes renovated warehouses, underground spaces and former industrial properties will be removed from rental websites like Airbnb.

“Basements will no longer be allowed for use. Rental spaces must serve as primary residential use areas, with natural light, ventilation and air conditioning,” Tourism Minister Olga Kefalogianni told state-run television ahead of the debate.

“We are introducing minimum operational and safety standards because this is a tourism product,” she said. “Our goal is the long-term, sustainable, and high-quality development of Greek tourism, not just breaking records every year.”

The draft legislation coincides with a one-year ban in Athens on new short-term rental licences in popular tourist areas like Kolonaki, Koukaki and Exarchia, with violations punishable with a fine of €20,000.

Balancing Greece’s tourism benefits with housing for locals

Vacation rentals have helped expand Greece’s vital tourism industry – directly accounting for 13 per cent of the country’s gross domestic product in 2023 – but also made life more expensive because of higher rents during the cost of living crisis.

The government says it wants to balance tourism benefits with housing accessibility and is offering tax incentives for property owners to shift away from short-term leasing.

Greece expected tourism revenue to reach a record €22 billion in 2024 thanks to a projected 35 million tourist arrivals, according to official estimates.

The number of rooms available in holiday rentals was roughly equivalent to those in hotels nationwide in 2023, but nearly double in central Athens, according to a study by a national hoteliers association. The body wants a crackdown on properties booked using websites like Airbnb.

Airbnbs in Athens: Heated debate in the Greek parliament

On the opening day of debate, several opposition lawmakers accused the centre-right government of disregarding the social costs and the strain on resources caused by overtourism and called for more comprehensive rental restrictions.

“You are allowing the concentration of short-term rentals in areas popular with tourists. That is drastically transforming neighbourhoods and displacing permanent residents,” left-wing lawmaker Kalliopi Vetta told parliament.

“The expansion of tourism is going unchecked,” she said. “This focus on profit alone is happening at the expense of the environment and society.”

The draft legislation, which also introduces new safety and operational requirements for holiday rentals, is due to be voted on later this month.