Rental income tax in Greece 2026
✦ Key Takeaways
- The new 15%–25%–35%–45% scale applies to rent you receive from 1 January 2026 onward — not to the 2026 Greek tax return (Form E1), which still covers 2025 income under the old scale.
- The new intermediate 25% band (€12,001–€24,000) replaces the old jump straight to 35% and mainly benefits middle-income landlords.
- The scale is applied to your taxable income — that is, after the automatic 5% deduction — not to the gross rent.
- The exemption for previously closed homes (and short-term rentals — e.g. Airbnb — converted to long-term leases) lasts 36 months and covers homes up to 120 sq.m., for leases signed by 31 December 2026.
- Mandatory electronic payment of rent, after two postponements, is now set for 1 October 2026 — and non-compliance costs you the 5% deduction.
New Law 5246/2025 introduces an intermediate 25% rate. This guide explains how rental income from Greek property is taxed in 2026 — with worked examples, the exemption for previously closed homes, and the new electronic-payment rule. Written for owners of property in Greece, including non-residents and foreign investors.
Note for non-resident owners. This guide explains the framework that applies to residential and commercial property located in Greece. Matters that are specific to your personal situation as a non-resident — tax residency, double-taxation treaties, and any withholding in your home country — fall outside the scope of this article. Confirm those with an advisor before you file.
Which income the new scale covers (2025 vs 2026)
Before anything else, you need to know which year's Form E1 the new scale applies to — because this is where most of the confusion arises.
The new 15%–25%–35%–45% scale applies to income received from 1 January 2026 onward. That income will be declared on the Form E1 filed in 2027.
If you are filing your Form E1 right now (the 2026 return), the rent it covers is what you received during 2025 — and that is still taxed under the old 15%/35%/45% scale, without the intermediate band.
💡 Tip: Filing your Form E1 this spring? It most likely concerns 2025 rent, so the old scale still applies. The new scale will first appear on your 2027 Form E1.
What counts as "income from immovable property"
Before we get to the rates, it is worth clarifying exactly what falls into this tax category — because it is not only the "classic" apartment rent.
The following rental income clearly belongs here:
- Homes (primary or secondary residences)
- Commercial premises (shops, offices)
- Agricultural plots and farmland
- Warehouses and parking spaces let as separate units
- Land or part of a property let for the installation of an antenna, wind turbine or advertising billboard — this is expressly treated as income from immovable property under Article 39 of the Greek Income Tax Code (ITC)
- A property let together with its furniture or equipment — the income from letting the equipment is also calculated as income from immovable property
⚠️ A different case: rooftop solar panels. If the owner installs their own photovoltaic system on the roof, the related revenue is not treated as rental income from immovable property. If, however, the owner lets the roof or part of the property to a third party for installing equipment, the amount received is examined as income from immovable property.
On shared spaces in an apartment building (e.g. revenue from an advertising billboard on a communal rooftop): the tax treatment depends on who receives the amount — the building manager on behalf of all co-owners, or each owner for their own share. This needs careful attention when drafting the contract.
How rental income is taxed
Separate (schedular) taxation
Rental income is not added to income from employment, pensions or business activity. It is taxed separately, on its own scale, with no tax-free threshold.
The scale is progressive
The scale is progressive (banded): each portion of income is taxed at the rate of its own band, rather than the whole amount being taxed at the highest rate it reaches. This means no one suddenly "drops" into a higher rate on their entire income — only the portion above each threshold is taxed at the next rate.
The new 2026 rental income tax scale
| Annual rental income | Rate |
|---|---|
| Up to €12,000 | 15% |
| €12,001 – €24,000 | 25% |
| €24,001 – €36,000 | 35% |
| Above €36,000 | 45% |
How it works in practice: The word "progressive" trips a lot of people up. If your income is €18,000, you are not taxed at 25% on the whole amount. You are taxed at 15% on the first €12,000 and at 25% only on the remaining €6,000. It is the same mechanism that applies to employees' tax — just fewer people know it applies to rent.
📦 The 2026 changes at a glance
- ✔ New intermediate 25% band
- ✔ Extended exemption for previously closed homes & short-term lets converted to long-term leases
- ✔ Mandatory electronic payment of rent
- ✔ Continuation of the 3.6% Digital Transaction Duty on commercial leases
- ✔ Special regime for short-term rentals with 3+ properties
Calculating the tax: what you actually pay
The calculation has three steps:
1. Annual rent (gross). The total amount you received during the tax year from the property.
2. Automatic 5% deduction. Tax law automatically deducts 5% of the gross amount as a notional repair-and-maintenance expense — no receipts required. The remaining 95% is your taxable income.
3. Applying the scale. The 15%/25%/35%/45% scale is applied to the taxable income (the 95%), not to the original gross amount.
⚠️ This is the point that confuses most owners: the scale is not applied to gross rent, but to the amount left after the 5% deduction.
Your net income after tax is obtained by subtracting the calculated tax from the original gross rent (not from the taxable amount — the 5% deduction is an accounting figure, not a real expense you actually paid).
Worked examples
Example 1 — Maria receives €600/month from a studio Annual income: €7,200 · Taxable (95%): €6,840 · Tax (15% on all of it, as it does not exceed €12,000): €1,026 · Net income: €6,174
Example 2 — Nikos lets an apartment at €1,000/month Annual income: €12,000 · Taxable: €11,400 · Tax (15% on all of it, right at the threshold): €1,710 · Net income: €10,290
Example 3 — Giorgos receives €1,500/month from two apartments Annual income: €18,000 · Taxable: €17,100 · Tax: €12,000×15% + €5,100×25% = €1,800 + €1,275 = €3,075 · Net income: €14,925
Example 4 — Eleni receives €2,500/month from three properties Annual income: €30,000 · Taxable: €28,500 · Tax: €12,000×15% + €12,000×25% + €4,500×35% = €1,800 + €3,000 + €1,575 = €6,375 · Net income: €23,625
Example 5 — A commercial lease at €3,750/month Annual income: €45,000 · Taxable: €42,750 · Tax: €12,000×15% + €12,000×25% + €12,000×35% + €6,750×45% = €1,800 + €3,000 + €4,200 + €3,037.50 = €12,037.50 · Net income: €32,962.50
| Annual income | Taxable (95%) | 2025 | 2026 | Tax saving |
|---|---|---|---|---|
| €7,200 | €6,840 | €1,026 | €1,026 | €0 |
| €12,000 | €11,400 | €1,710 | €1,710 | €0 |
| €18,000 | €17,100 | €3,585 | €3,075 | €510 |
| €30,000 | €28,500 | €7,575 | €6,375 | €1,200 |
| €45,000 | €42,750 | €13,337.50 | €12,037.50 | €1,300 |
Tax exemption for previously closed homes and short-term lets converted to long-term leases
One of the most significant incentives for 2026 targets owners who decide to "reopen" closed homes or convert a property from short-term to long-term letting.
What it provides: Full exemption from income tax for the first 36 months from the month the lease is signed.
Conditions:
- The home must have a floor area of up to 120 sq.m., increased by 20 sq.m. for each dependent child of the tenant beyond the second (i.e. the increase applies from the 3rd child onward)
- The property must be let as the tenant's primary residence
- The lease must run for at least 3 years and be signed by 31 December 2026
- For closed homes: they must have been declared vacant on Form E2 (or not declared as let / owner-occupied) for the three preceding tax years
- For properties under short-term letting: they must have been used exclusively for short-term letting in the previous tax year, with those rentals properly declared
- For special categories of tenant (medical/nursing staff, teachers, uniformed personnel), the exemption applies even with a lease of just 6 months
💡 Tip: If the property falls vacant once during the three years, the exemption continues if it is re-let. If it falls vacant a second time, it is lost permanently for the remaining period.
See also our full guide to ENFIA — a property's "closed" status affects other tax obligations too.
Commercial leases: the 3.6% Digital Transaction Duty
The 3.6% Digital Transaction Duty (the successor to the old stamp duty) does not apply to residential leases. It applies to commercial leases that are not subject to VAT. The party liable is the owner, but in practice who actually bears it is a matter of negotiation with the tenant.
Read in detail what applies to commercial leases.
Unpaid rent: how to avoid being taxed on money you never received
If your tenant did not pay the rent, you are not automatically exempt from tax — a specific procedure is required.
Before filing, the owner must have taken legal action to claim the debt (e.g. a payment order, or an eviction / rent-recovery lawsuit) — simply not receiving the rent is not enough on its own. In addition, Form E411 (the declaration of unpaid rent) must be filed electronically through the "My Requests" (Τα Αιτήματά μου) section of myAADE — the online portal of AADE, Greece's Independent Authority for Public Revenue — before the income-tax return is submitted.
Declaration: Unpaid rent is declared on Form E2 and carried over to the special boxes 125–126 of Form E1, so that it is not taxed as if received.
This procedure has several points that catch people out — deadlines, supporting documents, correct categorisation. If you are in this situation, talk to our advisor to make sure you are not taxed on money you never received.
How rent is declared on Form E2
Income is declared separately for each property, stating the actual rent received (or the deemed rent, in cases of free-of-charge use or owner occupation).
Short-term rentals are declared separately, based on the data recorded in the Short-Term Stay Property Registry.
⚠️ Hidden pitfall: If you let 3 or more properties on a short-term basis, the income is characterised as a business activity rather than "income from immovable property" — with different tax treatment and obligations (e.g. registering as a business). The characterisation does not depend on the number of properties alone: if you provide additional services beyond the basics (e.g. mid-stay cleaning, breakfast), the income may be treated as business income even with just 1–2 properties. Because this framework has changed several times, it is wise to check the rules currently in force. Many owners discover this only when it is too late.
Mandatory electronic payment of rent
Mandatory bank payment of rent was introduced by Article 210 of Law 5222/2025 (Government Gazette Α' 134/28-7-2025) — but the start date has been pushed back twice:
- Original provision: 1 January 2026
- First postponement: 1 April 2026
- Second postponement: 1 October 2026 — the date currently in force
⚠️ Hidden pitfall: The measure has been postponed twice due to technical problems with AADE's MIDA platform. Do not trust articles or sources citing "1/1/2026" or "1/4/2026" as the effective date — they are outdated. As things stand (June 2026), the effective date is 1 October 2026, but it is wise to check AADE's announcements before then, as a further postponement cannot be ruled out.
What changes from 1/10/2026:
- All rent (residential and commercial) must be paid exclusively through a bank account
- The bank account must be in the owner's name and declared to AADE
- Cash payment will not be recognised for tax purposes
Consequence of non-compliance: If payment is not made electronically, the owner loses the automatic 5% deduction on rental income, while the tenant may lose the annual rent allowance (up to €800) and other state housing-related benefits.
Taxation of Airbnb and short-term rentals
The tax treatment of Airbnb differs significantly depending on the number of properties:
- Up to 2 properties: Income is taxed as income from immovable property, on the same 15%/25%/35%/45% scale
- 3 properties or more: Income is characterised as a business activity. The same can happen with 1–2 properties if additional services are provided (see the pitfall in the previous section)
Converting a property from short-term to long-term letting can trigger the three-year exemption analysed above — a strong incentive for owners considering the switch.
Rental income earned by legal entities (companies)
If the property owner is a company rather than an individual, the 15%/25%/35%/45% scale does not apply. Rental income is incorporated into the company's total revenue and taxed at the corporate income tax rate in force (22% at the time of writing) — flat, regardless of the level of profit.
This difference is one reason some owners with a large number of properties consider setting up a real-estate management company — though this is not universally advantageous, as it depends on the overall revenue and cost profile.
2025 vs 2026: what changed overall
| Topic | 2025 | 2026 |
|---|---|---|
| Tax scale | 15%/35%/45% | 15%/25%/35%/45% |
| Intermediate 25% band | ❌ | ✔ |
| Exemption for closed homes (36 months) | ✔ already in force | ✔ continues until 31/12/2026 |
| Electronic rent payment | not mandatory | mandatory from 1/10/2026 |
| 3.6% Digital Transaction Duty on commercial leases | ✔ in force | ✔ continues |
| Stamp duty on residential rent | not imposed (for years) | not imposed (continues) |
Landlord's Checklist: common mistakes that cost money
- Have you declared the lease to AADE on time?
- Have you entered the correct amounts on Form E2 (per property, without errors)?
- If there is unpaid rent, have you taken legal action before filing?
- Have you classified the lease correctly (residential or commercial — not the same thing for tax)?
- If it is a commercial lease, have you checked whether the 3.6% Digital Transaction Duty or VAT applies?
- Are you receiving the rent electronically, so as not to lose the 5% deduction?
We hope this guide provides a comprehensive overview of rental income taxation in Greece for 2026. However, every case is different, and tax legislation may change over time. For the correct application of the rules and advice tailored to your specific circumstances, we recommend consulting a qualified accountant or tax advisor.