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2025 closed with a primary surplus greater than the target by approximately 2.75 billion, and economic growth is forecast to close at 2%, well above the European average of 0.9-1.1%. The new year begins with the same good omens regarding the economy, but also major challenges regarding the fight against punctuality, the need for housing and the reduction of bureaucracy. The government is launching a large package of measures for the three sectors mentioned above at the start of the new year. The main measures concern spending 2.6 billion on housing subsidies and a reduction in real estate taxes, an increase in minimum wages, and the digitalisation of procedures related to justice and transactions with the public sector.
More specifically, new measures that will be introduced from the beginning of 2026 and concern the above sectors are:
Housing Strategy
Social Counterpart: Development of the first 10 state-owned properties for the construction of affordable housing through public tenders.
Renovation Program: Subsidies of up to 90% (capped at €36,000) for the renovation of vacant or old residences, provided they are made available for long-term lease.
Tax Incentives: Exemption from rental income tax for 3–10 years for owners who convert vacant properties or short-term rentals (Airbnb) into long-term leases.
Airbnb Restrictions: A freeze on new short-term rental licenses in the centre of Athens and 5 tourist areas until the end of 2026.
Property Tax Reduction: A 50% reduction (aiming for full abolition in 2027) for primary residences in settlements with fewer than 1,500 residents.
Cost of Living & Economy
Income Support: Targeted interventions for vulnerable groups and increased tax exemptions for families with children (increase of the tax-free threshold based on square footage/property size).
Cost-of-Living Allowance: Payment of emergency financial aid to alleviate high living costs.
Bureaucracy & Reforms
Justice: Digitalisation of judicial procedures and electronic case management to accelerate the issuance of court rulings.
Real Estate: Simplification of property transfer processes and conversion of use from commercial to residential to increase the housing stock.
Public Administration: A new Disciplinary Code and digital monitoring of corruption cases.
Reference/Citation
CNN Greece
Capital.gr
Οικονομικός Ταχυδρόμος
ΑΘΗΝΑΪΚΟ - ΜΑΚΕΔΟΝΙΚΟ
BBC
In.gr
