The International Monetary Fund (IMF) has proposed additional tax burdens on residential properties left vacant for extended periods—a measure aimed at tackling Greece’s deepening housing crisis. In its latest report on the Greek economy, the IMF directly links the crisis to the country’s large stock of dwellings that are not used as primary residences.
A Structural Challenge
The Fund describes the housing shortage as a key structural challenge: home prices continue rising faster than incomes, while a significant portion of available housing remains effectively off the market. According to the IMF, residential property prices rose by 7.75% in 2025 alone, and cumulative growth since 2016 exceeds 85%.
Vacancy Is Part of the Problem
The most striking finding in the report concerns homes that exist on paper but fail to meet real housing needs. The IMF estimates that around 35% of Greece’s housing stock is not used as a primary residence—indicating the issue goes beyond insufficient new construction. It also reflects a failure to activate existing housing units.
Many of these vacant homes have remained idle for years due to owners’ lack of liquidity for renovations, high repair costs, fragmented ownership, or unresolved planning and legal issues.
Targeting Long-Term Vacancies
The IMF’s proposal centers on targeted disincentives for prolonged vacancy—most notably, higher property taxes on unoccupied homes located in high-demand areas. The logic is straightforward: a dwelling left unused in a region facing acute rental pressure worsens the supply shortage. As a result, markets show strong demand alongside constrained supply—even though many properties could, in theory, re-enter long-term rental use or be repurposed for social housing.
In this context, the IMF argues that housing policy must shift from merely boosting demand to actively increasing real supply—by applying economic pressure on owners who neglect their properties, possibly due to financial constraints.
Not Just Penalties—But Support Too
Crucially, the IMF does not propose penalties in isolation. Its recommendation is paired with support mechanisms—specifically, renovation and energy efficiency upgrade programs. These would help bring aging, vacant homes back into habitable and economically viable use.
The emphasis is on income-based eligibility and better targeting, ensuring older, currently inactive dwellings can be reintegrated into the housing system.
The closest existing precedent in Greece is the double ENFIA tax applied to vacant properties owned by banks, investment funds, servicers, and related legal entities. However, the IMF’s proposal differs significantly: it would extend such measures to individual private owners—not just institutional holders.