Airbnb or Long-Term Rent? How to Maximize ROI in Greek Real Estate
You've bought a property in Greece. Now comes the million-euro question: Should you Airbnb it or rent it long-term?
The answer isn't straightforward. Airbnb can generate 2–3x higher revenue than traditional rentals—but it comes with more work, regulatory risk, and seasonality. Long-term rentals offer stable cash flow and minimal management—but lower yields.
This comprehensive ROI analysis breaks down real numbers from both strategies across Greek cities, helping you choose the approach that maximizes your returns in 2025.
Meta Description: Data-driven comparison of Airbnb vs long-term rental strategies in Greece. Discover which approach maximizes ROI, cash flow, and property appreciation across Athens, islands, and emerging markets.
The Quick Comparison: Airbnb vs Long-Term Rental
| Factor | Airbnb (Short-Term) | Long-Term Rental |
|---|---|---|
| Gross Yield | 5–8% | 3–5% |
| Management Intensity | High (cleaning, check-ins, support) | Low (1–2 interactions/year) |
| Seasonality | Extreme (80% revenue May–Oct) | None (12-month contracts) |
| Regulatory Risk | High (licenses being restricted) | Low (stable framework) |
| Tenant Quality | Variable (tourists) | Stable (locals, expats) |
| Vacancy Risk | 20–40% (off-season) | 5–10% (between tenants) |
| Startup Costs | High (furniture, amenities) | Low (basic appliances) |
| Best For | Active investors, tourist hotspots | Passive investors, university cities |
Spoiler: The "best" strategy depends on location, property type, and your investment goals. Let's dive into the data.
ROI Analysis: Athens Center (Tourist Zone)
Property Profile:
- Type: 2-bedroom apartment (75 sqm)
- Location: Plaka (Athens historic center)
- Purchase Price: €300,000
- Renovation (for Airbnb): €15,000 (furniture, design)
Option A: Airbnb Strategy
Revenue Breakdown:
| Month | Nightly Rate | Occupancy | Nights Booked | Monthly Revenue |
|---|---|---|---|---|
| Jan | €70 | 35% | 11 | €770 |
| Feb | €75 | 40% | 11 | €825 |
| Mar | €85 | 55% | 17 | €1,445 |
| Apr | €95 | 70% | 21 | €1,995 |
| May | €105 | 80% | 25 | €2,625 |
| Jun | €110 | 85% | 26 | €2,860 |
| Jul | €120 | 90% | 28 | €3,360 |
| Aug | €120 | 90% | 28 | €3,360 |
| Sep | €105 | 80% | 24 | €2,520 |
| Oct | €95 | 65% | 20 | €1,900 |
| Nov | €80 | 45% | 14 | €1,120 |
| Dec | €75 | 50% | 16 | €1,200 |
| Annual | €95 avg | 65% avg | 241 nights | €23,980 |
Annual Expenses:
- Airbnb/booking fees (15%): €3,597
- Property management (20%): €4,796
- Cleaning (€35 × 120 bookings): €4,200
- Utilities (higher due to AC): €1,800
- ENFIA (property tax): €900
- Building fees: €900
- Insurance: €400
- Repairs/maintenance: €1,000
- Total Expenses: €17,593
Net Income: €23,980 - €17,593 = €6,387
ROI Calculation:
- Total investment: €315,000 (property + renovation)
- Net annual income: €6,387
- Net Yield: 2.0%
- Gross Yield: 7.6% (before expenses)
Option B: Long-Term Rental Strategy
Revenue:
- Monthly rent: €950 (market rate for 2BR in Plaka)
- Annual revenue: €950 × 12 = €11,400
Annual Expenses:
- Property management (8%): €912
- Utilities (paid by tenant): €0
- ENFIA (property tax): €900
- Building fees: €900
- Insurance: €300
- Repairs/maintenance: €500
- Total Expenses: €3,512
Net Income: €11,400 - €3,512 = €7,888
ROI Calculation:
- Total investment: €300,000 (no renovation needed)
- Net annual income: €7,888
- Net Yield: 2.6%
- Gross Yield: 3.8%
Winner: Long-Term Rental (+€1,501/year higher net income)
Why? While Airbnb generates higher gross revenue (€23,980 vs €11,400), the expenses eat up 73% of that revenue. Long-term rental's lower expenses result in better net cash flow.
Surprise Insight: In Athens Center, Airbnb's high management costs + seasonality + new license restrictions make it less profitable than expected.
ROI Analysis: Chania, Crete (Island Tourist Market)
Property Profile:
- Type: 1-bedroom apartment (55 sqm)
- Location: Chania Old Town
- Purchase Price: €180,000
- Renovation (for Airbnb): €12,000
Option A: Airbnb Strategy
Revenue:
| Season | Nightly Rate | Occupancy | Nights | Revenue |
|---|---|---|---|---|
| Peak (Jun–Aug) | €130 | 85% | 78 | €10,140 |
| High (May, Sep) | €110 | 75% | 46 | €5,060 |
| Shoulder (Apr, Oct) | €90 | 60% | 36 | €3,240 |
| Low (Nov–Mar) | €65 | 30% | 46 | €2,990 |
| Annual | €101 avg | 64% | 206 | €21,430 |
Annual Expenses:
- Airbnb/booking fees (15%): €3,215
- Property management (25% for islands): €5,358
- Cleaning (€30 × 100 bookings): €3,000
- Utilities: €1,500
- ENFIA: €600
- Building fees: €600
- Insurance: €350
- Repairs/maintenance: €800
- Total Expenses: €15,423
Net Income: €21,430 - €15,423 = €6,007
ROI:
- Total investment: €192,000
- Net Yield: 3.1%
- Gross Yield: 11.2%
Option B: Long-Term Rental Strategy
Revenue:
- Monthly rent: €650 (winter) / €800 (summer, if seasonal)
- Average annual: €700 × 12 = €8,400
Annual Expenses:
- Property management (8%): €672
- ENFIA: €600
- Building fees: €600
- Insurance: €300
- Repairs/maintenance: €400
- Total Expenses: €2,572
Net Income: €8,400 - €2,572 = €5,828
ROI:
- Total investment: €180,000
- Net Yield: 3.2%
- Gross Yield: 4.7%
Winner: Long-Term Rental (+€179/year, but it's close!)
Why Islands Are Different:
- Airbnb performs much better on islands (11.2% gross vs 7.6% in Athens)
- But management costs are higher (25% vs 20%) due to remote location
- The gap is narrow—Airbnb might win if you self-manage
ROI Analysis: Thessaloniki (University City)
Property Profile:
- Type: Studio apartment (40 sqm)
- Location: Near Aristotle University
- Purchase Price: €85,000
- Renovation: €5,000 (student-friendly furnishing)
Option A: Airbnb Strategy
Revenue:
- Similar to Athens but lower rates (€60–€85/night)
- Annual revenue: €14,500
Expenses: €11,200
Net Income: €3,300
Net Yield: 3.7%
Option B: Long-Term Student Rental
Revenue:
- Monthly rent: €380 (student rate)
- Annual: €4,560 (assuming 12-month lease)
Expenses: €1,200
Net Income: €3,360
Net Yield: 4.0%
Winner: Long-Term Rental (barely, but much easier)
Why University Cities Favor Long-Term:
- Students sign 9–12 month leases (September–June)
- Minimal management (parents often co-sign, pay upfront)
- No seasonality (academic year = demand)
- Airbnb has weak demand in non-tourist university cities
When Airbnb Wins: The Sweet Spot
Airbnb is only more profitable (net, not gross) when:
✅ 1. You Self-Manage (Save 20–25%)
If you live nearby or visit frequently, cutting out property management fees adds €4,000–€6,000/year to your bottom line.
Example (Chania):
- With manager: €6,007 net income
- Self-managed: €11,365 net income (+€5,358)
- Net yield jumps to 5.9% (vs 3.2% long-term)
✅ 2. Luxury/Boutique Properties (Premium Pricing)
High-end villas, renovated neoclassical homes, or unique properties command 2–3x higher nightly rates.
Example (Santorini Cave House):
- Nightly rate: €250–€400 (vs €100–€150 standard)
- Annual revenue: €60,000+ (vs €20,000 standard)
- Net yield: 6–8% even after high management costs
✅ 3. Year-Round Tourist Destinations
Places like Rhodes, Corfu, Crete have mild winters and attract tourists 10–11 months/year, reducing seasonality.
Occupancy Comparison:
| Location | Annual Occupancy | Revenue Lost (Off-Season) |
|---|---|---|
| Santorini | 50–60% | 40–50% |
| Mykonos | 55–65% | 35–45% |
| Athens | 65–75% | 25–35% |
| Rhodes | 70–80% | 20–30% |
| Chania, Crete | 65–75% | 25–35% |
Insight: Rhodes + Corfu + Southern Crete have the best year-round Airbnb potential.
✅ 4. No Long-Term Rental Demand
In small islands or remote villages, locals can't afford high rents and expats don't want to live there.
Example (Small Cyclades Islands):
- Long-term rent: €400/month (locals only)
- Airbnb (summer): €150/night × 90 nights = €13,500
- Airbnb is the only viable strategy
When Long-Term Rental Wins
Long-term rental is superior when:
✅ 1. University Cities (Student Demand)
Thessaloniki, Patras, Ioannina, Athens (near universities) = stable 9–12 month leases.
Advantages:
- No seasonality
- Low management (1–2 interactions/year)
- Tenants often renew (less turnover)
✅ 2. You're a Passive Investor
If you live abroad and can't manage an Airbnb (or afford 20–25% management fees), long-term wins on net cash flow.
✅ 3. New Airbnb License Restrictions
Athens Center, Mykonos, and Santorini are capping or banning new short-term rental licenses.
If you can't get a license, long-term is your only option.
✅ 4. Family-Oriented Neighborhoods
Areas like Glyfada, Kifisia (Athens suburbs) attract long-term expat families who pay premium rents (€1,200–€2,000/month) and stay 2–3 years.
ROI (Glyfada 3BR):
- Long-term rent: €1,800/month = €21,600/year
- Property cost: €550,000
- Net yield: 3.2% (but very stable, zero effort)
Hybrid Strategy: Best of Both Worlds
The 70/30 Model
- May–October (6 months): Airbnb at premium rates
- November–April (6 months): Long-term rental to expats/students
Example (Chania):
- Airbnb (summer): €18,000 (6 months)
- Long-term (winter): €650 × 6 = €3,900
- Total revenue: €21,900
- Expenses: €12,000 (blended)
- Net income: €9,900
- Net yield: 5.5% (vs 3.1% Airbnb-only, 3.2% long-term-only)
How to Execute:
- List on Airbnb (May–Oct)
- Find a seasonal worker or winter expat (Nov–Apr) who wants 6-month lease
- Repeat annually
Best For: Islands with winter expat communities (Crete, Rhodes, Corfu)
Tax Implications: Airbnb vs Long-Term
Airbnb Income Tax (Greece)
- Up to €12,000/year: 15%
- €12,001–€35,000: 35%
- €35,001+: 45%
Deductions Allowed:
- Property management fees
- Cleaning costs
- Utilities
- ENFIA (property tax)
- Depreciation (2% annually)
- Repairs/maintenance
Effective Tax Rate (after deductions): 8–12%
Long-Term Rental Income Tax
- Same brackets (15% / 35% / 45%)
- Same deductions available
Key Difference: Long-term rental income is easier to document and audit-proof (single tenant, 12-month contract).
VAT Considerations
- Airbnb: May trigger VAT registration if revenue >€10,000/year (24% VAT applied)
- Long-Term: Exempt from VAT
Consult a Greek accountant to optimize your structure.
Future Risks: What's Changing in 2025–2026
🚨 Risk #1: Airbnb License Restrictions
Impact: Athens, Mykonos, Santorini are limiting new licenses. More cities may follow.
Mitigation:
- Get your license now (before cutoffs)
- Focus on unrestricted zones (Thessaloniki, Crete, Peloponnese)
🚨 Risk #2: Rent Control (Long-Term)
Impact: Greek government proposed rent caps (max 3% annual increases) to combat housing crisis.
Mitigation:
- Lock in 3–5 year leases with annual escalators now
- Focus on luxury market (less likely to be capped)
🚨 Risk #3: Golden Visa Reform
Impact: If Golden Visa ends, foreign demand (both Airbnb + long-term) could drop.
Mitigation:
- Buy in areas with strong local demand (university cities, business districts)
The Verdict: Which Strategy Should You Choose?
Choose Airbnb If:
- ✅ Property is in a major tourist destination (islands, Athens center)
- ✅ You can self-manage or accept 20% fees
- ✅ Property is unique/luxury (justifies premium rates)
- ✅ You want flexibility to use the property yourself
Expected Net Yield: 3–6% (self-managed: 5–8%)
Choose Long-Term Rental If:
- ✅ Property is in a university city or business district
- ✅ You're a passive investor (live abroad, minimal involvement)
- ✅ You want stable cash flow with zero vacancy risk
- ✅ Airbnb licenses are restricted in your area
Expected Net Yield: 3–5%
Choose Hybrid If:
- ✅ Property is on an island with winter expat community (Crete, Rhodes, Corfu)
- ✅ You can handle 2 rental strategies (Airbnb summer + long-term winter)
- ✅ You want to maximize revenue without full-time management
Expected Net Yield: 4–6%
Action Plan: Getting Started
For Airbnb:
- ✅ Apply for short-term rental license (via local municipality)
- ✅ Furnish + stage property (budget €200–€300/sqm)
- ✅ Hire property manager (interview 3+, check reviews)
- ✅ Create professional listing (photographer, copywriter)
- ✅ Set dynamic pricing (use tools like PriceLabs, Wheelhouse)
Timeline: 2–3 months to launch
For Long-Term:
- ✅ List on Spitogatos.gr, XE.gr (Greece's top rental sites)
- ✅ Screen tenants (employment proof, references, deposit)
- ✅ Sign notarized lease (Greek law requires)
- ✅ Set up direct debit (autopay for rent)
Timeline: 2–4 weeks to find tenant
Final Thoughts
There's no universal "best" strategy—only the best strategy for your property and goals.
- Tourist hotspots? Airbnb can work, but watch your expenses.
- University cities? Long-term is king.
- Islands with year-round appeal? Consider hybrid.
The real key: Run the numbers for your specific property before deciding. Use our ROI calculator to model both scenarios with real market data.