6/27/2025

The government is preparing two options to reduce the tax burden on rental income. The goal is to support the long-term rental market, address the housing shortage, and reduce disparities among landlords.

🧾 Scenario 1: Unified Tax Scale Similar to Entrepreneurs
Rental income will be taxed under the same system as salaries or income of self-employed individuals.
The current separate taxation regime will be abolished.

New tax rates:

Up to €10,000 — 9%

€10,001–20,000 — 22%

€20,001–30,000 — 28%

€30,001–40,000 — 36%

Over €40,000 — 45%

🧾 Scenario 2: Maintain Separate Taxation but with Reduced Rates
Lower tax rates for low rental incomes:

Up to €5,000 — from 15% down to 5–7%

Higher tax brackets (35% and 45%) for larger incomes will also be reduced.

💰 Examples of Savings

€5,000 income: tax reduced from €750 to €250 (at 5%) → annual saving of €500

€10,000 income: tax reduced by €500 → remains €1,000–1,100

€9,500 income (unified scale): tax €855 instead of €1,425 → saving €570

€18,000 income: tax reduced from €4,300 to €2,660 → saving €1,640

€25,000 income: tax reduced from €7,300 to €4,960 → saving €2,340

⚖️ Additional Changes in Progress
Final decisions will be announced in August by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair (ΔΕΘ).

Starting in 2026, penalties will be imposed on landlords and tenants who continue paying rent in cash—such payments will no longer be recognized as tax-deductible expenses.

The government will extend support for short-term tenants (teachers, doctors, public servants), allowing multiple consecutive leases within the three-year exemption period to maintain tax relief.

Until now, tax exemption under Law 5073/2023 applied only if the lease lasted at least 36 months and the property was declared vacant.

These measures aim to support landlords, stabilize the rental market, and improve housing conditions for professionals working outside major cities.

Source: https://www.newmoney.gr/roh/palmos-oikonomias/oikonomia/dio-senaria-gia-ti-forologisi-ton-enikion/?fbclid=IwQ0xDSwK9PSFleHRuA2FlbQEwAGFkaWQBqx9hxojq6AEeLGQb_e2fyNFcjGQ6xV0KLnChg_9eGjxlrTdyd7OMCVpSqJFzgJ-7FrG2OQs_aem_dvit3AC6KWF-SK-lWS0mDw#Echobox=1750077583