The government is exploring multiple measures to address the country’s housing crisis, including a potential “inactivity tax” on vacant properties and incentives to encourage landlords to rent out empty apartments.

Prime Minister Kyriakos Mitsotakis said last week that the government “must find a way for closed houses to enter the market to utilize the potential of housing that exists in the country.” He added that the government “is about to announce new financing tools while preparing a package of incentives and disincentives so that owners of closed houses make them available for rent.”

The economic team has received various proposals but has not made final decisions. Among the measures under consideration are changes to existing tax exemptions for landlords who open vacant properties, withdrawal of rental subsidies from tenants who don’t pay rent, and the controversial inactivity tax on property owners who keep apartments empty.

Currently, property owners can receive a three-year tax exemption on rental income if they meet specific conditions: opening and renting a property that was closed for at least three years between September 8, 2024, and December 31, 2025, with the property not exceeding 120 square meters. Officials are considering reducing the required vacancy period to two years or one year, though Finance Ministry sources indicate no changes are planned.

Another proposal would strip rental subsidies from tenants who fail to pay rent, identifiable through legal notices or court proceedings. However, ministry sources suggest this measure won’t advance, as subsidies are based on declarations in tax returns where taxpayers are legally responsible for accuracy.

The government has confirmed it will extend property renovation tax credits through 2026. Property owners can receive tax reductions of up to 16,000 euros over five years, with annual credits reaching 3,200 euros for energy, functional and aesthetic improvements.

Additional proposals include mandatory rent payments through bank accounts and potential changes to property tax scales, though officials prioritize income tax reforms to support the middle class first.

The measures reflect growing pressure to address Greece’s housing shortage by incentivizing landlords to make vacant properties available for rent while penalizing those who keep properties empty during the crisis.