The text below outlines the key differences between new and existing commercial leases in Greece, as well as the specific provisions for leases arising from auctions. It also highlights the significant changes that have been introduced to the rental laws and provides general advice for both landlords and tenants.
A commercial lease is defined as the lease of a thing, specifically real estate, which is entered into for the purpose of carrying out an activity therein, and is protected by Law 813/1978, as codified by Presidential Decree 34/1995. Today, commercial leases are governed by the provisions of Presidential Decree 34/1995. This decree has been amended, notably by Law 2749/1999, and more recently by Laws 4242/2014, 4257/2014, 4264/2014, 4335/2015, and 4373/2016.
New Leases (after 28/2/2014)
- Duration: Freely negotiable by the parties.
- Minimum Duration: 3 years.
- Termination: By written agreement or notice after 3 years with a three-month notice period. Termination before the three-year period is only justified for a serious reason as provided by law and case law.
Old Leases (before 28/2/2014)
- Duration: 12 years, without compensation for intangible value after 12 years.
- Termination: By a newer agreement or notice according to the Civil Code.
- Time limits for personal use/reconstruction: 9-18 months.
- Compensation:
- Personal use: 8-15 monthly rents.
- Reconstruction: 6-9 monthly rents.
Leases due to Auction:
- Business: The purchaser has a 6-month notice period to terminate.
- Residence: The purchaser has a 6-month notice period to terminate, after 3 years from the beginning of the lease.
Significant Changes:
- Abolition of the 4-year automatic extension for existing leases.
- Reduction of compensation for intangible value in existing leases.
- Introduction of a minimum duration of 3 years for new leases.
By carefully examining the duration, termination clauses, compensation rights, and other relevant factors, individuals can make informed decisions and protect their interests within the framework of the new legal landscape.
The information presented is based on the data available at the time of writing. There is no commitment to update or modify the text after the initial publication. The user bears full responsibility for assessing and using the information. Provision of legal advice or assumption of liability towards third parties is limited to clients who have entered into a relevant cooperation with the office.
