Greek rental income tax in 2026: brackets, the 5% deduction and the bank rule
Last updated: · Sources · Adapted in English from our Greek guide. Read the Greek version
If you let a property in Greece, rental income is not taxed with your salary or pension. It has its own progressive brackets, from the first euro.
For income earned in tax year 2026 (declared in 2027), the reformed brackets of Article 8 of Law 5246/2025 apply. Rental income is declared on form E2, the schedule of property income inside the Greek income tax return (form E1), filed on myAADE, the AADE online portal.
This guide gives you the order of magnitude before you talk to your accountant.
15 / 25 / 35 / 45% (top rate from €36,000)
Legal basis: Article 8 of Law 5246/2025, amending Article 40(4) of the Greek Income Tax Code (Law 4172/2013). It applies to income from tax year 2026.
| Income | Rate |
|---|---|
| 0 – €12,000 | 15% |
| 12,000 – €24,000 | 25% |
| 24,000 – €36,000 | 35% |
| Over €36,000 | 45% |
- Progressive: each slice of taxable income is taxed at its own rate.
- No tax-free allowance like salaries have: 15% applies from the first euro.
- Taxable income is usually 95% of gross rent (see the next section).
Up to tax year 2025, the brackets were: 15% up to €12,000, 35% up to €35,000 and 45% over €35,000. From 2026: 15% up to €12,000, 25% up to €24,000, 35% up to €36,000 and 45% over €36,000.
The 5% standard deduction
Legal basis: Article 39(3)(a) of the Income Tax Code. An individual who lets property deducts 5% for repairs, maintenance, renovation and other running costs, without receipts for this presumed expense.
- Gross rent for the year: R
- Standard deduction: 0.05 × R
- Taxable (as a rule): 0.95 × R
The bank collection rule
Legal basis: Article 210 of Law 5222/2025, which added paragraph 5 to Article 39 of the Income Tax Code. If rent is not paid into the landlord’s bank account declared to AADE (Greece’s tax authority), the 5% standard deduction is lost.
Three examples in euros
Assumptions: an individual, a long-term lease, the 5% deduction, the 2026 brackets.
Example 1: rent of €650 a month (€7,800 a year)
All taxable income stays in the 15% bracket.
| Step | Result |
|---|---|
| Gross rent | €7,800.00 |
| Deduction 5% | €390.00 |
| Taxable | €7,410.00 |
| Tax | €1,111.50 |
| Effective rate on gross rent | 14.25% |
Example 2: rent of €1,800 a month (€21,600 a year)
The first €12,000 is taxed at 15% (€1,800) and the remaining €8,520 at 25% (€2,130).
| Step | Result |
|---|---|
| Gross rent | €21,600.00 |
| Deduction 5% | €1,080.00 |
| Taxable | €20,520.00 |
| Tax | €3,930.00 |
| Effective rate on gross rent | 18.19% |
Example 3: gross rent of €40,000, with and without the deduction
| Step | Result |
|---|---|
| Gross rent | €40,000.00 |
| Deduction 5% | €2,000.00 |
| Taxable | €38,000.00 |
| Tax | €9,900.00 |
| Effective rate on gross rent | 24.75% |
| Step | Result |
|---|---|
| Gross rent | €40,000.00 |
| Deduction 5% | €0.00 |
| Taxable | €40,000.00 |
| Tax | €10,800.00 |
| Effective rate on gross rent | 27.00% |
Difference: €900. The cash case shows the tax when a whole year’s rent is collected in cash, as from 2028; in 2027 the penalty covers only rent collected from July 1.
Legal basis and sources
- Rental income brackets 2026 (15 / 25 / 35 / 45%): Article 8 of Law 5246/2025 (Government Gazette A 198/11.11.2025), in force under Article 47(3).
- Standard deduction 5%: Article 39(3)(a) of Law 4172/2013 (Income Tax Code).
- Collecting rent through a bank: Article 210 of Law 5222/2025 (Government Gazette A 134/28.07.2025); start postponed to July 1, 2027 by AADE decision A.1187/2026.
Your own rental income tax
Enter the rent and the months. The calculation runs on your device. ENFIA is calculated separately.
Calculate your taxWith your own figures, no sign-up.
What people ask about rental income tax
Do the new brackets apply to the 2026 tax return (2025 income)?+
No. Under Article 47(3) of Law 5246/2025, the new brackets apply to income from tax year 2026, declared in 2027. 2025 income still uses the previous brackets (15 / 35 / 45%).
Is all my rent taxed at 25% or 35%?+
No. Tax is progressive: each slice of income is taxed at its own rate. Only the amount above €36,000 reaches 45%.
Does the 5% deduction need receipts?+
No. Article 39(3)(a) of the Greek Income Tax Code presumes 5% for repairs and upkeep without any receipts.
When do I lose the 5% if I collect rent in cash?+
The bank requirement was introduced by Article 210 of Law 5222/2025, but the penalty was postponed to July 1, 2027 (AADE decision A.1187/2026). For 2025 and 2026 income, the deduction applies however the rent is collected.
Does the same apply to short-term rentals?+
For income tax, yes, if you are an individual with up to 2 short-term properties and provide no services beyond bed linen: the same brackets and the same 5% deduction. With more properties, the income is business income. Short-term rentals also pay the climate crisis resilience fee per night.
Is ENFIA deducted from rental income?+
No. ENFIA, Greece’s annual property tax, is charged on ownership and calculated separately; it is not deducted from rental income.
Read next
- How ENFIA is calculated: Greece’s annual property tax, step by step: zone price, floor area, floor, age, reductions and surcharge.
- Net rental yield on a Greek property: From gross to net: income tax, ENFIA and running costs, and why the gap is larger than it looks.