Up to 90% subsidy for home renovation
The new housing renovation subsidy programme launches in 2026 with a 400 million euro budget and covers up to 90% of costs. Prime Minister Kyriakos Mitsotakis calls it “generous” because it boosts housing supply and improves living conditions by upgrading old and vacant properties.
The subsidy reaches up to 36,000 euros per residence and targets ageing and closed properties to increase home availability and raise housing standards. Couples qualify with incomes up to 35,000 euros, plus 5,000 euros per child.
Teachers, nurses and doctors working outside Attica and Thessaloniki urban centres qualify for a refund of two rents per year, benefiting around 50,000 people regardless of income. This incentive encourages them to stay and house themselves in these areas.
Authorities expect to deposit payments each November, matching this year’s first annual rent refund.
Incentives and new regulations
Further details emerge soon on upgrading municipal and state buildings in mountainous and island areas into housing for public employees.
New restrictions target short-term rentals beyond current rules, extending to Thessaloniki’s centre. In Athens and Thessaloniki, where authorities ban short-term rentals, transfers automatically remove properties from the Short-Term Stay Property Rental to boost long-term lease availability.
Private investments gain incentives for affordable housing. Construction firms build or convert buildings solely for at least ten-year long-term rentals, deducting rents from income tax. Central authorities set rent caps to keep prices affordable.
Urban planning changes and affordable housing
Urban planning rules strengthen housing stock by placing abandoned or unfinished buildings under private investment frameworks with tax incentives, spurring use of idle properties.
These measures tackle housing challenges mainly for young households and workers beyond major cities. They supplement budget interventions like phasing out ENFIA for primary homes in settlements up to 1,500 residents, cutting VAT on regional islands, aiding pensioners and adjusting special salary schemes.
Source: CNN Greece
Also read: Greek 2026 budget passes with 159 votes
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