Greece Increases Subsidies and Tax Breaks for Renovating Vacant Homes for Long-Term Rentals

Authorities are offering thousands of taxpayers the opportunity to carry out property renovation in Greece for real estate that has remained vacant for the last three years, receiving a subsidy for renovation and a three-year exemption from rental tax, provided they offer these homes for long-term leasing.

The currently active ‘Renovate-Rent’ program is expected to become more attractive as the subsidy rate for renovation expenses will increase from 40% to 60%. This means that the maximum expense cap is likely to rise to 15,000 euros from 10,000 euros where it stands now, with a possible increase in the advance payment percentage as well.

These improvements to the program will apply retroactively to citizens who have or will submit their application to the platform before the new regulations have been incorporated.

At the same time, a program of 400 million euros will be launched for loans up to 20,000 euros with zero interest, aiming at the energy upgrade of thousands of older homes in an effort by Greek authorities to further boost property renovation in Greece.

Tax Exemption

To qualify for a three-year income tax exemption on rental income from newly opened properties, owners must meet four conditions:

1. The residence must have been vacant for at least three years, as verified by the E2 tax form.

2. The property’s area must not exceed 120 square meters.

3. The three-year income tax exemption applies exclusively to properties owned by individuals, not companies, and is granted for each vacant home up to 120 square meters that is made available for long-term leasing.

4. The deadline for renting out the property is from September 8, 2024, to December 31, 2025, and the exemption is valid for three years from the start of the lease.