Athens court rules against Airbnb in apartment building as Greece prepares sweeping property law reform

Athens court rules against Airbnb in apartment building as Greece prepares sweeping property law reform

A ruling by the Athens Court of First Instance has confirmed that apartment building residents in Greece can, under certain conditions, legally block a short-term rental from operating in their building. The decision, reported by Greek outlet Ta Nea on August 7, 2026, does not impose a blanket ban on Airbnb or other vacation rental platforms, but it has sharpened a legal debate that directly affects thousands of STR operators across the country. The timing is significant: Greece's Justice Ministry is simultaneously drafting the most substantial overhaul of property law the country has seen since 1929, with a parliamentary vote expected this fall.

Building regulations, not national law, determine whether an STR can be blocked

The Athens ruling hinged on a specific legal instrument: the building's internal regulations, known in Greek as the kanonismos. Lawyers consulted by Ta Nea explained that the ruling does not establish a blanket ban on short-term rentals, since the practice remains legal under Greek law, but it confirms that operating one is not an absolute right.

Where a building's regulations explicitly state that apartments are intended solely for residential use, or exclude their use for tourist rentals, those provisions create strong legal grounds for restricting short-term leasing. In practical terms, this means the enforceability of any restriction depends entirely on what a specific building's founding documents say.

Court decisions have gone both ways, and case law is not settled

This ruling is not the first of its kind, and it is unlikely to be the last. Case law on this issue is not uniform. Courts have also issued opposite rulings in cases where building regulations contain no prohibition clause and where it is not shown that the rental use substantially alters the residential character of the property.

Each case is still judged on the specific wording of that building's regulations and its particular circumstances. For STR hosts operating in Greek apartment buildings, that variability is both a risk and, in some cases, a protection. If your building's founding deed contains no clause restricting tourist use, courts have generally been reluctant to impose one.

Greece's property law overhaul will directly address short-term rentals

The more consequential development for the STR sector may be the legislative reform under preparation. The Justice Ministry is preparing a sweeping overhaul of property law, unchanged since 1929, with the bill expected to be ready for a vote this fall, though it remains to be seen what specific changes it will bring on the issue of short-term rentals.

Based on what has been presented publicly so far, the reform is expected to address STR-related disputes as part of a broader modernization effort. Among the anticipated changes: making it easier to amend outdated building regulations, strengthening out-of-court dispute resolution mechanisms between co-owners, and directly regulating issues arising from short-term rentals, described by the drafting committee as a newer form of leasing that has grown rapidly in recent years.

The reform covers broader property issues that indirectly affect STR operators

The proposed legislation extends well beyond short-term rentals. The reform is expected to lower the voting thresholds currently required for building repairs and energy upgrades, which under existing law can require unanimous agreement. It would also allow the splitting or merging of apartments regardless of what current building regulations permit, a measure framed partly as a response to housing shortages in major cities like Athens.

A 13-member drafting committee, made up of judges, university professors, institutional representatives, lawyers, notaries, and representatives from the environment ministry, the Land Registry, and the Technical Chamber, is responsible for producing the reform. Justice Ministry leadership has stressed the reform will respect property rights and the constitutional protections that safeguard them, aiming to resolve existing problems rather than create new points of conflict.

What Greek STR hosts should do now

For Airbnb and Vrbo operators in Greece, this ruling and the coming legislative reform together signal a period of regulatory transition. Hosts operating in apartment buildings should review their building's founding regulations now, before any dispute arises, to determine whether any residential-use or anti-tourist-rental clauses are present.

The announcement did not specify an exact date for the parliamentary vote, or detail precisely how the new law will regulate short-term rentals. Hosts should monitor the Justice Ministry's communications as the bill advances. This pattern, where court decisions push short-term rental disputes into sharper focus while national legislation scrambles to catch up, is familiar elsewhere in Europe. Barcelona, Amsterdam, and Lisbon have all navigated similar tensions between building-level restrictions, national law, and rapid STR growth in recent years.

Lodge Compliance tracks short-term rental regulations, licensing, permitting, zoning, and tax requirements across thousands of jurisdictions, helping hosts stay informed as local rules evolve.
Not sure what this means for your property? Get your free compliance report at lodgecompliance.com 

‍