Greece plans a tenant reliability certificate to protect landlords

The Greek government plans to introduce a tenant reliability certificate, aiming to address the problem of unpaid rents and encourage property owners to bring “closed homes” back to the market.

The certificate will certify that prospective tenants have no debts to the State, banks and public utilities, thus strengthening their credibility.

The pilot operation of the program is scheduled to be in operation in 2026.

Note From the details so far published in the media, I see no provisions about foreign nationals, tenants who come from abroad and how they will certify their reliability. KTG is certain the legislator will find a solution to this issue too… unless it is thought for Greek tenants only!?

According to a report by kathimerini, the measure will be based on the national Private Debt Registry, created in 2022 but not yet implemented.

Bankrolled by the EU’s Recovery Fund and expected to be completed by May 2026, the registry will allow both public authorities and private creditors to manage debts of individuals and companies anonymously and verify financial reliability.

Prospective tenants would be able to present a certificate of solvency to landlords.

Real estate professionals say unpaid rents and utility bills have led many owners to keep homes closed.

According to tax authority data, landlords declared €40 million in unpaid rents between 2022 and 2024. But officials believe this represents only a fraction of losses, since bureaucracy deters many owners from filing claims.

Unpaid rent is not the only concern. Damages often exceed deposits, prompting owners to demand guarantees of three to six months’ rent, a barrier for many tenants.

Rising housing costs also force households to cut other expenses, raising fears of new unpaid rent “waves” caused by necessity rather than intent.

Landlords argue that stronger safeguards would help reopen properties, but tenant groups warn the registry could unfairly stigmatize families.

The Panhellenic Association for the Protection of Tenants expressed “strong opposition,” noting that Greek law already allows tenants to withhold rent in cases such as property defects, urgent repairs, or financial hardship.

“We do not understand what the criterion will be for whether the tenant withheld rent justifiably or not,” the association said. “A blot on a record in the registry would be catastrophic for that tenant and their family.”

Market analysts add that slow judicial procedures for compensation after damages remain a major deterrent for landlords.

Few owners ever recover money, often after years of litigation, maintaining the cycle of low supply and high rents.

Observers caution that the new system will need to be well-balanced, ensuring landlords are protected without penalizing tenants facing legitimate difficulties.

PS already there are some comments and warnings that if this is implemented many leasing contracts will be handled in the black market.