Rental Restrictions Applicable to Greek Golden Visa Properties

The amendment of the Greek Golden Visa framework by Law 5100/2024 introduced restrictions on the utilisation of properties acquired for the purpose of obtaining or renewing investor residence permits. These restrictions form part of Article 100 of Law 5038/2023, as amended, and must be considered by purchasers intending to derive rental income from a qualifying investment.

The statutory restrictions principally concern short-term letting within the sharing economy, as well as certain arrangements involving subletting and the use of property for business purposes. Their interpretation requires consideration of the specific investment category and the administrative guidance applicable to the property.

Circular 1/2026 provided clarification concerning the distinction between prohibited short-term accommodation arrangements and certain permissible forms of tourist exploitation. The relevant assessment is not exhausted by determining whether the property is listed on a digital booking platform. The duration of occupation, nature of the contractual arrangements and services actually provided may be material to the legal classification of the activity.

The distinction is particularly relevant where an investor proposes to lease a property to a professional accommodation operator. The legal implications of such an arrangement depend on its substantive terms and the business activity being conducted, including whether the arrangement falls within the statutory prohibition on short-term letting or qualifies under the administrative interpretation concerning tourist use.

The application of the restrictions must also be examined by reference to the investment's timing and the legislative regime under which the relevant residence rights arose. Earlier acquisitions and investments completed under applicable transitional provisions may require a different analysis from acquisitions subject to the revised regime.

Investors intending to enter into long-term residential leases should examine compliance with Greek tenancy legislation, tax registration obligations and the particular restrictions applicable to their residence-by-investment category. A proposed leasing arrangement should be reviewed before execution where its structure involves subletting, commercial exploitation or other arrangements that may engage the statutory prohibitions.

Non-compliance may have consequences extending beyond ordinary regulatory or tax exposure, including administrative penalties and implications for the continued validity of the residence authorisation where the statutory conditions are established.

Rental income projections should consequently be based on a legally permissible method of exploitation of the acquired property. The examination of residence eligibility and the intended use of the asset must form part of the same pre-acquisition assessment, particularly where the financial return of the investment is dependent on tourist accommodation or third-party property management arrangements.

This article is general information and not legal advice. For advice on a specific matter, contact us.