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List your propertyFrom 1 January 2026, rental income in Greece is taxed under a new four-band scale introduced by Law 5246/2025: 15% up to €12,000, 25% from €12,001 to €24,000, 35% from €24,001 to €36,000, and 45% above €36,000. The reform eliminates the notorious jump from 15% straight to 35% and nudges the top threshold up by €1,000. It applies to income earned in 2026, declared in the 2027 tax return.
How is rental income taxed in Greece in 2026?
Rental income of individuals is taxed separately from salary or business income, on a progressive scale, after a flat 5% deemed deduction for repairs and maintenance. The 2026 scale, confirmed by KPMG Greece and WTS Global analyses of Law 5246/2025:
| Annual rental income (taxable) | Rate 2026 | Rate 2025 (old) |
|---|---|---|
| €0 – €12,000 | 15% | 15% |
| €12,001 – €24,000 | 25% | 35% |
| €24,001 – €36,000 | 35% | 35% (to €35,000) |
| Above €36,000 | 45% | 45% (above €35,000) |
The scale is progressive: each band's rate applies only to the slice of income within it. Short-term rental income of individuals (up to two properties, no extra services) is taxed on the same scale — but on gross receipts minus only the 5% deemed deduction, with no allowance for cleaning, platform fees or utilities.
What changed vs 2025 — and what does it save in euros?
Two changes: a new intermediate 25% band for €12,001–€24,000 (previously taxed at 35%), and the 45% threshold moving from €35,000 to €36,000. Worked examples (tax on taxable rental income, before the 5% deemed deduction):
| Annual rent | Tax under 2025 scale | Tax under 2026 scale | Saving |
|---|---|---|---|
| €9,600 (€800/month) | €1,440 | €1,440 | €0 |
| €18,000 (€1,500/month) | €3,900 | €3,300 | €600 |
| €30,000 (€2,500/month) | €8,100 | €6,900 | €1,200 |
| €40,000 (multiple units) | €12,100 | €10,800 | €1,300 |
As the Greek Ministry of Economy and Finance framed it in its tax guidance, the goal is a "fairer and smoother" scale that stops penalising owners whose rents crept just over €12,000 during the recent rent inflation — Spitogatos data show average asking rents in central Athens above €10/m² in early 2026. Note also a separate compliance change: from 1 January 2026, rent must be paid exclusively by bank transfer to an account declared to AADE; cash rent no longer counts as valid payment and can cost the landlord deductions.
What deductions and expenses can landlords claim?
- 5% deemed expenses: a flat 5% of gross rent is deducted automatically for repairs, maintenance and operating costs — no receipts needed, but also no option to deduct higher actual costs (Global Property Guide).
- Renovation and energy-upgrade credit: 40% of documented renovation/energy-efficiency expenses, up to €16,000 of spend, credited against tax over five years — invoices and bank payment required.
- ENFIA: the annual property ownership tax is a separate levy and is not deductible from rental income; budget for it on top of income tax.
- Uncollected rent: deductible from the taxable base only via the E411 procedure (see below).
Practical example: €18,000 gross rent → 5% deduction → €17,100 taxable → tax €3,075 under the 2026 scale, an effective rate of about 17%.
What about non-resident owners?
Non-residents are taxed in Greece only on Greek-source income, and rental income is taxed on exactly the same scale as for residents, including the 5% deemed deduction. A non-resident owner needs a Greek tax number (AFM), a fiscal representative or accountant in practice, and must file an annual Greek return declaring the lease through AADE's electronic system. EU/EEA residents earning at least 90% of their worldwide income in Greece can access most resident credits. Double-tax treaties generally give Greece the primary right to tax Greek property income, with the owner's home country granting a credit — so the Greek bill is usually the floor, not an extra layer (PwC Tax Summaries).
What is the 3-year exemption and who qualifies?
Under Law 5162/2024, rental income is fully exempt from income tax for 36 months when all of the following hold:
- The home is up to 120 m² (plus 20 m² per dependent child of the tenant beyond the second);
- A lease of at least three years is signed between 8 September 2024 and 31 December 2026;
- The property was previously vacant (declared empty or not declared as leased/owner-occupied in the prior three tax years) or was used exclusively for short-term rental in the year before signing.
There is no income cap on the benefit. On a €1,400/month apartment (€16,800/year), the exemption is worth about €2,790 a year under the 2026 scale — roughly €8,400 over three years. The clawback matters: if the property returns to short-term platforms or is left vacant within the 36 months, the exemption is revoked retroactively and the tax is assessed as if it had never applied.
What happens to undeclared or uncollected rent?
Undeclared rent is a losing bet: platforms and banks report to AADE (DAC7 and the 2026 bank-transfer rule), and leases must be registered electronically for the tenancy to be enforceable. Unpaid rent is the sharper trap — rent you never received is still taxable, at up to 45%, unless you act. As Athens News reported in July 2026, owners avoid tax on uncollected rent only by filing the digital Form E411 with AADE before the return deadline, supported by at least one of: a payment order, an eviction order or ruling, or a filed lawsuit for eviction or rent. The form is submitted per tenant, per property, per supporting document; the amounts are then taxed only in the year they are actually collected.
The 2026 scale is the friendliest Greek landlords have seen in a decade for the €12,000–€36,000 range — and combined with the 3-year exemption for long-term conversions, it materially changes the after-tax maths of holding an Athens apartment. The moving parts (E411 deadlines, lease registration, the exemption's clawback) reward owners who run the paperwork with discipline, whether themselves, through their accountant, or via a professional long-term management setup.
