Tax incentive for home renovations: Up to €3,200 annual discount for 5 years

Tax incentive for home renovations: Up to €3,200 annual discount for 5 years
The state offers a particularly attractive tax benefit to homeowners who undertake aesthetic, functional, or energy upgrades in 2025. Specifically, a tax deduction of up to €3,200 per year is provided for a period of five years, i.e. up to €16,000 in total, provided that the work is paid for electronically and accompanied by the relevant legal documents.

The relevant provision, which was already implemented in 2024, is expected to be extended to 2025, according to the upcoming bill of the Ministry of Finance. There is even a provision for the extension to possibly cover the expenses of 2026 (which will be declared in 2027), thus broadening its scope.

? Double benefit for landlords who rent out their properties

For those who choose to renovate homes up to 120 square meters and rent them out on a long-term basis (at least for three years), the benefit is twofold:

Tax deduction for renovation expenses.

Exemption from rental income tax for the next three years.

? Which expenses are eligible for deduction

In order for expenses to be recognized, they must:

Pay by card or other electronic means.

Receipts or invoices must have been issued by professionals.

Not already covered by another program (e.g., “I Save”).

Eligible expenses fall into two basic categories:

A. Renovation services

? Energy works:

  • Installation of thermal insulation.
  • Replacement of window frames and glass panes.
  • Upgrading heating/cooling systems.
  • Installation of photovoltaic panels, batteries, and hot water production systems using renewable energy sources.
  • Installation of mechanical ventilation and automation systems.
  • Upgrade lighting in common areas.

? Functional & cosmetic procedures:

  • Replacement of electrical or plumbing installations.
  • Repair of roofs, masonry, painting.
  • Installation of awnings.
  • Elevator upgrade.
  • Installation of electric vehicle charging stations.
  • Repair or replacement of flooring.

Β. Purchase materials

The costs of purchasing materials are recognized with a restriction: they cannot exceed 1/3 of the value of the services used for the renovation itself.

Materials such as the following are recognized:

  • Thermal insulation materials.
  • Window frames and glass panes.
  • Plumbing and electrical installation materials.
  • Painting and masonry repair materials.
  • Systems RES (e.g. photovoltaics, boiler, batteries).

⚠️ Please note: This does not apply to projects included in other programs
These expenses must not be subsidized through other programs (e.g., “Exonomo”). If you join another funded project, you cannot claim the tax credit.