Joining a string of European nations grappling with overtourism, Greece has introduced a ban on new licenses for short-term rentals in three districts in central Athens, beginning January 1, 2025.

According to a press statement by the Greek government, the ban will remain in effect for at least a year, also raising the tax on such holiday lets. It says that this decision aims to address the housing crisis exacerbated by the rise of platforms like Airbnb and will remain in place for at least a year.

Tourism Minister Olga Kefalogianni emphasised the need to balance the profitable tourism industry with the housing needs of locals. The government’s measures also include an increase in the tax on short-term rentals, says the statement. 

It adds that the daily tax will rise from EUR 1.5 to EUR 8 during the peak tourist season from April to October and from EUR 0.5 to EUR 2 in the winter months. 

The ministry says that these tax revenues will help fund initiatives to address the impacts of climate change-related natural disasters.

Kefalogianni noted that short-term rentals often function similarly to hotels and have placed additional pressure on local communities. She indicated that the ban could be extended beyond the initial year if necessary.

Greece‘s tourism sector is expected to achieve record revenues of EUR 22 billion this year, building on last year’s total of EUR 20.6 billion.

Kefalogianni says that the country’s standing as a top global tourist destination is reflected in the anticipated growth in tourism revenue.