As housing affordability becomes an increasingly urgent challenge across Europe, Greece is preparing to launch a new tax-incentive program designed to encourage private developers to build and maintain rental housing, marking the country's latest effort to ease a growing shortage of homes.
The initiative, known as "Build to Rent," is included in a draft bill currently under public consultation by Greece's Ministry of National Economy and Finance. The program seeks to increase the supply of long-term rental housing by offering substantial tax advantages to companies that develop new residential properties or convert existing commercial buildings into apartments.
The proposal comes as Greece faces mounting pressure in its housing market. Rising property prices, limited housing supply and strong demand from both domestic and international buyers have made it increasingly difficult for many households, particularly younger people, to find affordable accommodation. Policymakers have been searching for ways to expand the country's housing stock without relying exclusively on public spending.
ΔΙΑΒΑΣΤΕ ΕΠΙΣΗΣ
Under the draft legislation, developers and real estate companies that participate in the program would be required to dedicate their properties exclusively to long-term rental use for a minimum of ten years. The measure would apply not only to newly constructed residential buildings but also to the redevelopment of offices and other non-residential properties into housing.
In exchange, rental income generated from these properties would be exempt from corporate income tax, provided landlords comply with the program's conditions. Rental rates would be determined through a separate ministerial decision, with further operational details expected to be outlined in a joint government decree.
The government hopes the incentives will attract private capital into the residential sector and encourage projects that might otherwise struggle to meet investors' return expectations.
A typical project could involve a developer constructing a multi-family apartment building in an area with strong housing demand and committing to rent all units under long-term leases for at least a decade. In return, the company would benefit from tax-free rental income throughout the qualifying period.
The framework could also support urban regeneration efforts. For example, an investor could acquire an aging office building in central Athens and convert it into residential apartments. As long as the units are leased under the program's long-term rental requirements, the owner would qualify for the same tax advantages while helping increase the supply of available housing.
