Greece is offering construction companies full income tax exemptions on rental earnings to address a worsening housing s...

Greece is offering construction companies full income tax exemptions on rental earnings to address a worsening housing shortage, under a new "Build to Rent" program currently in public consultation as part of a broader Ministry of Economy bill. Rents across Greece have risen sharply in recent years, with affordable housing becoming increasingly difficult to find, especially for young workers and families. Previous government efforts focused primarily on demand-side subsidies, but officials now acknowledge that without more housing supply, price pressure will not ease. The Build to Rent program aims to change that by giving companies a strong financial incentive to construct new residential buildings or convert existing non-residential structures into apartments. The tax exemption applies only when properties are committed exclusively to long-term leases of at least ten years, at pre-set rent levels. Greece is essentially importing a model already established in the UK, Germany, and the Netherlands, where institutional investors build and hold residential portfolios rather than selling units after completion. The model generates stable rental income for investors while adding professionally managed housing stock to the market. Critics and analysts point out that tax breaks alone may not be enough. Land costs, construction expenses, borrowing rates, and the notoriously slow Greek permitting process all affect whether developers will actually move forward. The bill is still in consultation, so the final structure of the incentives could change before it becomes law. The government's own assessment is clear: success will not be measured by how many companies express interest, but by how many new rental units actually reach the market in the coming years. #Greece #HousingCrisis #BuildToRent