How is rental income actually taxed in Greece?
Individual landlords pay tax on rental income at 15% up to €12,000, 35% on the band from €12,001 to €35,000, and 45% above that, per AADE's rental income tax scale. This applies to gross rent received in the tax year, and it is a separate scale from employment or business income, though the bands are cumulative across a taxpayer's total rental income from all properties.
There is no general "expenses" deduction against this scale for individuals the way a business would deduct costs from turnover. Instead, Greek tax law allows a small number of specific deductions and offsets, plus a flat-rate presumption built into the system, which is why knowing exactly what qualifies matters more than in most rental tax regimes.
What expenses can I actually deduct?
For individual (non-business) landlords, deductible items are narrower than most owners assume. The main ones recognised under Greek tax practice are:
Repair and maintenance costs, where the landlord bears these under the lease and can document them with a legal invoice (timologio) from a registered contractor. This does not include capital improvements that increase the property's value, such as adding a room, which are treated differently.
Insurance premiums on the property, if paid by the landlord and evidenced by the policy and payment receipt.
A standardised deduction of 5% is applied automatically by AADE to gross rental income for individual landlords to cover repair and maintenance costs, rather than requiring itemised receipts for small running costs. This is built into the E2/E1 calculation, not something you claim separately.
Municipal and property taxes such as ENFIA are not deductible against rental income tax; ENFIA is a separate, standalone property tax owed regardless of whether the property is let, per AADE.
Loan interest on a mortgage used to acquire the specific rental property can, in some cases, be offset, but this is a narrow and frequently misunderstood area. Get advice on your specific loan and property before assuming it applies.
What about costs from finding and managing tenants?
Agency fees, advertising costs and property management fees are generally not deductible against personal rental income for individual landlords under the current regime, because the 15/35/45 scale is designed around a simplified, largely expense-blind calculation with the 5% standardised allowance doing that work. This surprises owners coming from jurisdictions where management fees are a standard write-off.
If you operate rentals through a company structure or as a registered business activity rather than as a private individual, the rules differ substantially and genuine operating costs, including management fees, are typically deductible against business income. Whether that structure suits you depends on your total portfolio and residency position, and is worth a conversation with an accountant before you scale up.
This is also why the choice between self-letting, an agent, or a managed service (covered in How to Find Tenants in Athens) is a cash-flow and time decision more than a tax one for most individual landlords.
Do energy upgrades or renovations qualify for any relief?
Separately from rental-income deductions, Greece runs periodic home-renovation and energy-upgrade subsidy schemes (such as "Exoikonomo" iterations) administered through the Ministry of Environment and Energy, which provide grants or subsidised loans rather than tax deductions against rental income. These are worth checking for their current window and eligibility, but they sit outside the rental tax return itself and have their own application process and deadlines.
Genuine capital works that increase the property's value (a new roof, rewiring, a full bathroom renovation) are not rental-income deductions; they adjust the property's cost basis for capital gains purposes if and when you sell, which is a different calculation entirely.
What documentation does AADE actually require?
Every deductible cost needs a legal invoice or receipt in the name of the owner, issued by a registered Greek business (VAT-registered where applicable), showing the property address or a clear link to it. A handwritten note, a foreign invoice with no Greek tax details, or a cash payment with no paper trail will not survive a check.
Keep records for at least five years, which aligns with AADE's standard audit window for income tax matters. Store the E2 form filed for the relevant year, the lease declaration confirmation, and every invoice supporting a claimed deduction together, ideally scanned, since AADE requests in practice tend to ask for a specific year's full file rather than a single receipt.
If you use a property manager, ask them to forward invoices for any works they commission on your behalf in real time, not at year-end. Reconstructing a year of maintenance invoices from memory in March is the most common source of missed deductions we see.
How do I report rental income correctly?
Two filings matter, and they are linked. First, every lease must be declared on the AADE lease-declaration platform, with the tenant's AFM and the property's energy certificate number, as covered in detail in How to Find Tenants in Athens and Rent Collection in Greece. Second, rental income is reported annually on the E2 form (analytical statement of real estate income) and flows into your E1 annual tax return.
The E2 must reflect actual rent invoiced under the declared lease for the year, matched month by month. If you had vacant months, they should show as vacant on the E2, not just omitted, because AADE cross-checks declared leases against reported income and unexplained gaps invite a query.
If a tenant paid late or partly in cash, the tax treatment follows what is legally documented as owed and paid under the lease, not what physically changed hands, which is exactly the trap explored in Rent Collection in Greece. Undeclared cash top-ups do not reduce your reportable income; they simply create risk with no tax benefit.
What happens if I get it wrong?
AADE has been increasing cross-checks between declared leases, E2 filings and utility/consumption data (electricity and water accounts) to flag properties that appear occupied but show no declared rental income, or declared leases with no matching E2 entry. Penalties for inaccurate or late declarations attach both to the lease declaration itself (a fixed penalty regime under AADE circulars) and, separately, to under-reported income on the E1/E2, which can trigger back tax plus surcharges and interest under Greece's general tax procedure code.
The safest position is straightforward: declare every lease on time, file the E2 to match it exactly, keep every deductible invoice in the owner's name, and treat ENFIA, agency fees and most management costs as non-deductible unless your accountant confirms otherwise for your specific structure.
Can I deduct property management fees from my rental income tax in Greece?
Generally no, for individual landlords under the standard 15/35/45 rental income scale, which already builds in a 5% standardised allowance instead of itemised expense deductions. Management fees may be deductible if you operate through a business structure, which is a separate conversation with an accountant.
Is ENFIA deductible against rental income?
No. ENFIA is a standalone annual property tax owed regardless of whether the property is rented, and it is not offset against rental income tax.
Do I need an invoice for every expense I want to deduct?
Yes. AADE requires a legal invoice or receipt from a registered business in the owner's name, linked to the property. Costs without proper documentation cannot be claimed.
What is the E2 form and do I need to file it every year?
The E2 is the analytical statement of real estate income, filed annually alongside your E1 tax return, listing each property's rental status and income for the year, including vacant months. It is required every year you own or let residential property in Greece.
Does cash rent still need to be declared for tax?
Yes. Tax liability follows the amount legally due and documented under the declared lease, not the payment method. Undeclared cash does not reduce your taxable rental income and creates unnecessary compliance risk.
Are renovation costs tax-deductible against rental income?
Routine repair and maintenance can, in narrow cases, be documented and considered, but the 5% standardised allowance already covers most of this for individual landlords. Capital improvements that add value are not rental-income deductions; they affect the cost basis for a future capital gains calculation instead.
What to do next
Keep every property-related invoice in your own name from day one, file the E2 to match your declared lease and actual occupancy exactly, and treat ENFIA and most management-style costs as non-deductible unless an accountant confirms your structure allows otherwise. Cross-check your position annually against What is changing in 2026? in our Rent Collection guide, since AADE's cross-checking is tightening year on year.
mamaXO manages the declaration, documentation and reporting side of long-term lets for owners who would rather not track invoices and AADE deadlines themselves, and charges only on rent actually collected. For an estimate for your property, get in touch.
About mamaXO
mamaXO is an Athens-based property and Golden Visa operator. This guide is produced by the mamaXO editorial team and reviewed by our in-house legal, tax and property specialists. We focus on accurate, source-backed and risk-honest guidance for international investors in Greek real estate. [Meet the team →]
Sources
- AADE, individual income tax scale for rental income (15%/35%/45%)
- AADE, E2 form (analytical statement of real estate income) and E1 annual tax return guidance
- AADE, property lease declaration platform and requirements
- AADE circular, penalties for missing or late lease declarations
- Ministry of Environment and Energy, "Exoikonomo" home energy-upgrade subsidy programmes
- Independent Authority for Public Revenue (AADE), ENFIA (Unified Property Tax) framework
