As housing pressures intensify and population decline deepens in several regions of Greece, the government is paying special attention to incentives designed to encourage people to move, placing relocation at the center of a broader strategy to tackle the housing crisis. The new legislative package links financial support for moving to shrinking regions with policies aimed at easing rental pressure in urban centers and expanding housing supply nationwide.
The expanded Relocation program anchors the plan. It offers a flat €10,000 ($11,968) incentive to individuals and households who choose to settle in areas facing long-term demographic decline. Authorities first tested the scheme in the Evros region and have now extended it across a much wider geographic area.
Paying people €10,000 to move to Greece’s shrinking regions
The relocation incentive targets municipalities and municipal units in the regional units of Drama, Florina, Kilkis, Serres, Pella, and Kastoria, as well as prefectural capitals that have experienced sustained population losses. Unlike earlier versions of the program, the government now applies the €10,000 (about $11,960) subsidy uniformly, regardless of settlement size.
Eligibility has also been expanded. Remote workers, retirees, university graduates who remain locally employed, and Greeks living abroad can all apply. To reduce upfront financial pressure, authorities are paying part of the first installment in advance, helping applicants manage initial relocation and housing costs when they move to these regions.
How Greece uses regions to ease urban housing pressure
The relocation scheme serves not only as a demographic tool but also as a housing policy instrument. By encouraging people to move away from high-demand urban markets, the government of Greece aims to curb rent increases and improve availability in cities where shortages have reached critical levels.
At the same time, the state supports essential public sector workers through targeted rent refunds. Teachers, doctors, and nurses who rent housing near their place of service outside Greater Athens (excluding the island regional unit) and outside the Thessaloniki region qualify for a refund equal to two monthly rents instead of one. The measure carries no income criteria and is expected to benefit around 50,000 workers, with authorities effectively paying part of the housing cost to ease financial pressure.
Cracking down on short term rentals
The legislative package also tightens rules governing short-term rentals, which many policymakers view as a key factor behind the shrinking supply of long-term housing. Authorities have extended existing restrictions from the first, second, and third municipal districts of Athens to include the First Municipal Community of Thessaloniki.
The legislation also closes a major loophole. When ownership of a property changes within a restricted area, regulators will remove the property from the Short-Term Rental Registry and block re-registration for as long as the restriction remains in effect.
Bringing vacant homes back to market
On the supply side, the government is expanding renovation incentives through a redesigned Renovate and Rent program. With an estimated budget ranging from €400 million ($478 million) to €500 million ($598 million), the scheme prioritizes repair and refurbishment work over purely energy-focused upgrades.
Grants may amount to €36,000 ($43,089), with an additional €5,000 ($5,984) per child. Policymakers aim to return vacant or substandard properties to the long-term rental market, increasing housing availability in areas where demand continues to outpace supply.
