Property owners in Greece can legally eliminate income tax on rental earnings for up to 3 years by correctly completing specific sections of the E2 tax declaration form. New E2 codes introduced for the 2025 tax year (covering 2025 income) allow exemptions for previously vacant homes or properties switched from short-term (Airbnb-style) to long-term leases.
Normally, rental income is taxed at progressive rates of 15–45%, with an automatic 5% deduction for expenses such as maintenance and repairs. However, targeted incentives now offer full tax relief under strict conditions.
Who Qualifies for the Tax Exemption?
- Long-term leases of previously vacant properties
- The home must have been vacant throughout 2022, 2023, and 2024.
- A new residential lease of at least three years must be signed in 2025.
- Use Code 64 on the E2 form → rental income becomes fully tax-exempt for the lease duration (up to three years).
- Conversion from short-term to long-term rental
- The property was registered for short-term rentals in 2024.
- A long-term lease is signed in 2025.
- Use Code 65 → income from the new long-term lease is exempt.
- Leases to public-sector workers
- Minimum six-month lease in 2025.
- The property was vacant or short-term registered in prior years.
- Tenant must be a healthcare worker, public-school teacher, armed forces member, or security services personnel.
- Use Codes 66 or 67 → qualifies for exemption.
How to Claim the Exemption Correctly
- Mark vacancy periods accurately if the property was empty in previous years.
- Specify property type (residence, detached house, commercial space, parking, storage, etc.).
- Enter gross rental income and any previously uncollected rents that were paid in 2025.
- Declare unpaid rents only if legal action (eviction notice, court order, lawsuit) was initiated before the tax-filing deadline—submit proof to AADE.
- Include the 9-digit electricity supply number for each property (use a placeholder if no active connection exists).
- Record the lease declaration reference number from the official property rental information system.
Important Reminders
- The exemption applies only to income reported under the qualifying codes and transferred to the main tax return.
- Short-term rental income remains fully taxable—no exemption available.
- Incorrect or missing codes mean the income is taxed normally.
- Always consult a certified accountant or tax advisor, as AADE may request supporting documents during audits.
These measures aim to encourage long-term housing availability and bring vacant or short-term properties back to the residential market amid Greece’s ongoing housing shortage.
Sources: AADE tax guidance (March 2026 updates), Ministry of Finance announcements, and official E2 form instructions for tax year 2025.
Airbnb Restrictions in Greece 2026
