New Rules Open the Way for Converting Buildings into Homes and Parking Spaces 🏠

10/1/2026

Under Law 5322/2026 (Government Gazette A’ 117/24.7.2026), Article 199 of Law 5306/2026 (Spatial Planning and Urban Planning Code – Nikos Tagaras) has been amended, introducing an important new option for property owners: the conversion of entire buildings or parts of buildings into residential units or parking spaces (garages), even where such uses are not permitted under the current land-use or building regulations.

The measure had been a longstanding request of POMIDA, with the aim of making thousands of buildings that have remained unused due to outdated planning restrictions available for new uses.

What the New Provision Provides

Article 199, paragraphs 3 & 3A of Law 5306/2026

1. Conversion into residential or parking use

The provision applies exclusively to the existing legally constructed building volume, without allowing any increase in floor area, site coverage or building height. The new framework also allows the creation of parking spaces, either as a primary or ancillary use.
(Article 199, paras. 3 & 3A)

2. Properties within urban plans

For legally existing buildings located within approved urban plans or settlements, a change of use is permitted regardless of any discrepancies with current building regulations, including floor-area ratio, site coverage or height restrictions.
(Article 199, para. 3)

3. Properties outside urban plans – a significant change

For the first time, buildings located outside urban plans may be converted into residential or parking spaces, irrespective of the applicable land uses, general or specific building regulations, or special spatial-planning and development regimes.
(Article 199, para. 3A)

4. Buildings constructed under special exemptions

The provision also covers legally constructed buildings outside urban plans that were built under special derogations, provided that the relevant approvals were granted by 31 December 2025.
(Article 199, para. 3A)

5. Legally regularised unauthorised structures

The change-of-use provision also applies to buildings that have been included in the regularisation procedures under Laws 4178/2013 and 4495/2017, provided that the relevant regularisation process has been fully completed.
(Article 199, paras. 3 & 3A)

Procedure – Building Permit or Electronic Building Identity Update?

A building permit is required where the change of use results in more demanding alterations affecting:

In cases where the new use is permitted and none of the above changes are required, only an update of the Electronic Building Identity (E-Building Identity) is necessary.
(Article 199, para. 2)

Restrictions

1. The change of use may only be carried out once.
(Article 199, para. 3A)

2. The right remains valid even if the area is incorporated into an urban plan in the future.
(Article 199, para. 3A)

3. Short-term rentals are prohibited for five years.
New residential units created under this provision cannot be used for short-term rentals for five years following completion of the change of use.
(Article 199, para. 3A)

4. A special environmental fee applies to certain buildings outside urban plans.
For buildings constructed under special derogations, a fee equal to 5% of the objective value of the land is imposed.
(Article 199, para. 3A)

What This Means for Property Owners and the Real Estate Market

The new framework could:

Overall, the new provisions create additional opportunities for the reuse of existing properties, while allowing buildings that have become obsolete under current planning rules to be adapted to today's residential and parking needs.

 

 

 

 

Source: https://www.michanikosapps.gr/blog/8171?fbclid=IwdGRleAUd1lBwZG9mBWZkaWQWUO0MUczMb_TiIpocOWJwvwog6lA3y2V4dG4DYWVtAjExAHNydGMGYXBwX2lkCjY2Mjg1NjgzNzkAAR7HbR3AlHXZCpDwxLO6xP_X1oLMU8azWMxQ3HAJ9OMbAALUNWnX28dwskSd7w_aem_WiH5-ZTIc533RqsoQNyX0A