GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
vided that the trust is established in a jurisdiction that is not considered a non-cooperative tax jurisdiction. 5.6 Annual Entity Maintenance and Accounting Compliance The annual entity maintenance and accounting com - pliance costs of entities investing in real estate vary significantly depending on the portfolio of real estate owned by the entity and the type of exploitation (eg, short-term residential lease, long-term commercial lease, direct operation as main or non-main tourist accommodation, etc). Compliance costs are notably higher for REICs, which have the obligation to com - ply with International Financial Reporting Standards and to publish semi-annual investment sheets of their real estate assets based on valuations of independ - ent valuer accompanied by the report of an auditor or audit firm, while public companies are subject to the legal framework of listed companies, which requires the publication of semi-annual financial statements and other regular financial disclosures. 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time In Greece, legal arrangements that allow the tem - porary use of real estate without ownership include contractual arrangements such as lease and sublease agreements, loans for use (gratuitous grant of use), time-sharing, tenancies at will, leases with option to buy, and concessions, as well as limited rights in rem such as servitudes (eg, usufruct or right of habita - tion). These uses of real estate vary in duration and terms, depending on the agreement and the arrange - ment type. Each arrangement is governed by specific provisions in the Civil Code. 6.2 Types of Commercial Leases Here is a summary of the types of leases in Greece: Commercial/Professional Lease • Description : Leases for retail, office or industrial properties to businesses or professionals (para - graph 2, Presidential Decree 34/1995). • Duration : Minimum 3 years.
• Legal Framework: Governed by the Civil Code (Articles 574 to 594) and mainly Presidential Decree 34/1995 as amended and in force. Short-Term Lease • Description Leases: of up to 59 days that are con - cluded through or outside digital platforms, provid - ed that the property is rented furnished without the provision of any services other than bed linen. • Duration : Up to 59 days. • Legal Framework: Governed by Article 111 of Law 4446/2016. 6.3 Regulation of Rents or Lease Terms In general, rents and lease terms can be freely negoti - ated between the parties. However, by law, the minimum duration for a com - mercial lease is set at three years, binding both the lessor and lessee, even if a shorter or indefinite period is agreed. If a lease term exceeds three years, that term applies. The above also applies to residential leases. According to Article 96 of Law 5007/2022, as amend - ed and in force, the rent for commercial leases under Presidential Decree 34/1995 can be increased by a maximum of 3% for the period from 1 January 2026 to 31 December 2026, based on the rent of 2025. This rent adjustment rule does not apply where the lessor is: • a Real Estate Investment Company (REIC); or • companies majority-owned by AIFs managed by authorised managers, provided they are not estab - lished in non-cooperative tax jurisdictions or high- risk third countries for AML/CFT purposes. or • a commercial shopping centre operator with a minimum area of at least 15,000 square metres; or • companies wholly owned by the Greek State and their subsidiaries. 6.4 Typical Terms of a Lease In Greece, typical business premises leases have the following terms:
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