Rent from a property in Greece is taxed in Greece, wherever the owner lives. From 1 January 2026 a new, lower middle rate applies to rental income. This guide sets out who pays, the rates, what you can deduct, how short-term lets are treated and what you must file each year.
Last checked: October 2026
At a glance
- Non-residents pay Greek tax on rent from Greek property. A double taxation agreement can change how that income is treated in your home country.
- Rental income from 2026 is taxed on its own scale: 15% up to €12,000, 25% to €24,000, 35% to €36,000 and 45% above.
- Individual landlords get a flat 5% deduction for repairs and running costs, but only if rent is paid through a bank account.
- Short-term lets of up to two properties are taxed on the same property income scale. From three properties, they count as a business and VAT applies.
- Every long-term lease must be declared to the tax authority (AADE), and the income reported each year on forms E1 and E2.
Who pays Greek tax on rent
Greece taxes non-residents on income that arises in Greece. That includes “income from immovable property” located in Greece, according to AADE’s guidance for non-residents. The same income categories and rules apply to residents and non-residents.
Where Greece has a double taxation agreement with your country of residence, the agreement governs how the income is taxed. To rely on it, AADE asks for a tax residence certificate from your country of residence.
Non-residents are not subject to Greece’s presumed living-cost rules (the “objective expenses” used to test whether declared income is plausible), AADE says. They can still face minimum tax on presumed income linked to buying assets, if they also earn real income in Greece.
You need a Greek tax number (AFM) both to buy and to declare rent. Our guide to getting an AFM and bank account from abroad covers the steps.
Before you let: declare the lease
For a long-term lease, AADE lists four obligations:
- Declare the lease details on AADE’s online property lease service, by the end of the month after the lease is agreed.
- Declare the rental income.
- Complete the detailed list of property leases (form E2).
- Submit the annual income tax return (form E1).
These steps are set out on AADE’s long-term lease guide. The declared lease also matters to your tenant: Greece’s rent refund for tenants depends on leases filed with AADE, as we explained in our note on the November rent refund.
The 2026 rate scale
Law 5246/2025, published in the Government Gazette (A’ 198, 11 November 2025), reshaped the scale for income from property. AADE notified the change to its offices in circular O.3068/2025. The new scale applies to income earned from 1 January 2026.
| Annual rental income (€) | Rate to 2025 | Rate from 2026 |
|---|---|---|
| 0 – 12,000 | 15% | 15% |
| 12,000.01 – 24,000 | 35% | 25% |
| 24,000.01 – 36,000 | 35% (to €35,000) | 35% |
| Above 36,000 | 45% (above €35,000) | 45% |
The scale is progressive: each slice is taxed at its own rate. Tax on the first €12,000 is €1,800, on the first €24,000 €4,800, and on the first €36,000 €9,000.
Rental income is taxed separately from salary or pension income. It is not added to your other Greek income to set the rate.
The 5% deduction and the bank-account rule
Individual landlords can deduct 5% of gross rent to cover repairs, maintenance, renovation and other running costs. The deduction is flat and needs no receipts. It does not apply to rent from land.
A 2025 amendment (Law 5222/2025) added a rule that rent must be paid into the landlord’s bank account declared to AADE. If rent is not paid that way, the 5% deduction is lost. Tenants who pay outside the bank system can also lose their rent support.
For an owner abroad, the practical step is to give the tenant an account in your name, declare it to AADE and keep every payment traceable.
Short-term lets
AADE’s questions and answers on short-term rentals set the dividing line:
- Up to two properties: an individual’s short-term rental income counts as income from property, taxed on the scale above.
- Three or more properties: the income is business income, and 13% VAT applies to all the properties.
- Companies: always business income, whatever the number of properties.
- Co-owners: each co-owner is assessed separately, by the number of properties that person lets.
Every short-term let must be entered in AADE’s register, and its registry number (ΑΜΑ) shown on each listing. Central Athens has a freeze on new registrations, and Golden Visa properties face their own limits. Our short-term rental rules guide covers both.
Commercial leases
Rent from non-residential leases that are not subject to VAT carries a 3.6% digital transaction fee, declared with the tax return and form E2. Leases of homes are excluded, according to the owners’ federation POMIDA’s summary of current rates. The fee is usually passed to the tenant by agreement.
The three-year exemption for empty homes
Law 5246/2025 extended a tax exemption for owners who let previously empty homes on long leases. Under the extended rule, rent is exempt for 36 months if:
- the home is up to 120 m², with more space allowed for dependent children;
- the lease runs for at least three years and is signed between 8 September 2024 and 31 December 2026;
- in the three previous tax years, the home was declared empty or was not declared as let, used by the owner or lent. A home used only for short-term letting in the previous year can also qualify.
The exemption ends if the home is vacated or let short term within the 36 months, unless it is re-let on a long lease. The conditions are detailed; check them against your own filing history before relying on them.
Worked examples
The examples below apply the 2026 scale and the 5% deduction to an individual landlord with no other Greek rental income. They exclude ENFIA property tax, which is a separate annual charge explained in our ENFIA guide.
| Item (€ a year) | Flat let at €1,200 a month | Villa let at €2,500 a month | €1,200 a month, rent not paid by bank |
|---|---|---|---|
| Gross rent | 14,400 | 30,000 | 14,400 |
| 5% deduction | 720 | 1,500 | 0 |
| Taxable income | 13,680 | 28,500 | 14,400 |
| Tax at 15% on first 12,000 | 1,800 | 1,800 | 1,800 |
| Tax at 25% (12,000–24,000) | 420 | 3,000 | 600 |
| Tax at 35% (24,000–36,000) | 0 | 1,575 | 0 |
| Total tax 2026 | 2,220 | 6,375 | 2,400 |
| Same income on the 2025 scale | 2,388 | 7,575 | 2,640 |
On the 2026 scale, the €1,200-a-month flat pays €168 less than under the 2025 rates. The €2,500-a-month villa pays €1,200 less. Losing the 5% deduction by taking rent outside the bank system costs the flat’s owner €180 a year.
Points that cost owners money
- Rent in cash. It loses the 5% deduction and can cost the tenant their rent support.
- An undeclared lease. The lease must be declared by the end of the month after it is agreed.
- A third short-term let. It moves all of an owner’s short-term lets into business income with VAT.
- No residence certificate. Without one, you cannot rely on a double taxation agreement.
Frequently asked questions
Do I pay Greek tax on rent if I live abroad?
Yes. Rent from Greek property is Greek-source income and is taxed in Greece. A double taxation agreement decides how your home country treats it.
Is there a tax-free allowance on rental income?
No. The 15% rate applies from the first euro. Rental income is taxed on its own scale, separate from salary or pension.
When did the new 25% rate start?
It applies to rental income earned from 1 January 2026, under Law 5246/2025. Income for 2025 was taxed on the old scale.
Can I deduct my actual repair costs?
Individual landlords get a flat 5% deduction instead, with no receipts needed. It is available only when rent is paid through a bank account.
Is holiday-let income taxed the same way?
For an individual with up to two short-term let properties, yes: it is property income on the same scale. From three properties, it becomes business income with VAT.
Do I have to file a Greek tax return?
Yes. Rental income is reported on form E2 and the annual income tax return, form E1, according to AADE.
Does the empty-home exemption apply to a home I have just bought?
It depends on how the home was declared in the three previous tax years. Check the conditions above with an accountant before signing a lease.
Buyers should confirm how this applies to them with a Greek lawyer or accountant. Tax and legal specifics depend on your residence, treaty position and filing history.
Sources
- Law 5246/2025, Government Gazette A’ 198, 11 November 2025 (PDF, Greek)
- AADE circular O.3068/2025, 18 November 2025 (Greek)
- AADE: taxation of Greek-sourced income of non-residents
- AADE: leasing a property long term
- AADE: questions and answers on short-term rentals, 23 September 2025 (PDF, Greek)
- POMIDA (Hellenic Property Federation): tax scales (Greek)
