Greece bans windowless basements, freezes central Athens licenses in overhaul of short-term rentals

ATHENS, Greece — Lawmakers in Greece began debating proposed legislation on Friday to toughen rules for short-term rentals amid a surge in tourism, including a ban on using converted storage spaces and windowless basements.

Renovated warehouses, underground spaces and former industrial properties will be removed from rental platforms under the proposed changes, including locations already converted for hospitality use.

“Basements will no longer be allowed for use: Rental spaces must serve as primary residential use areas, with natural light, ventilation and air conditioning,” Tourism Minister Olga Kefalogianni told state-run television ahead of the debate.

“We are introducing minimum operational and safety standards, because this is a tourism product,” she said. “Our goal is the long-term, sustainable and high-quality development of Greek tourism, not just breaking records every year.”

The draft legislation coincides with a one-year ban in Athens on new short-term rental registrations in popular districts like Kolonaki, Koukaki and Exarchia, with violations punishable by a fine of 20,000 euros ($20,500).

Vacation rentals have helped expand Greece’s vital tourism industry — directly accounting for 13% of the country’s gross domestic product in 2023 — but also added pressure on household expenses because of higher rents during the broader cost of living crisis.

The government says it wants to balance tourism benefits with housing accessibility and is offering tax incentives for property owners to shift away from short-term leasing.

Greece is expecting tourism revenue to reach a record 22 billion euros ($22.7 billion) in 2024 with a projected 35 million tourist arrivals, according to official estimates.

The number of rooms available using short-term rentals was roughly equivalent to those in hotels nationwide in 2023, but nearly double in central Athens, according to a study commissioned by a national hoteliers association. The body is seeking tougher regulation of properties booked using online platforms like Airbnb.

On the opening day of debate, several opposition lawmakers accused the center-right government of disregarding the social costs and the strain on resources caused by the expanding tourism and called for more comprehensive rental restrictions.

“You are allowing the concentration of short-term rentals in areas popular with tourists. that is drastically transforming neighborhoods and displacing permanent residents,” left-wing lawmaker Kalliopi Vetta told parliament.

“The expansion of tourism is going unchecked,” she said. “This focus on profit alone is happening at the expense of the environment and society.”

The draft legislation, which also introduces more detailed safety and operational standards for vacation rentals, is due to be voted later this month.