GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
• Length of lease term: Generally, a lease ranges from three to ten years, with some leases extend- ing for more than ten years. Shorter leases (for less than three years) are also possible for temporary businesses. • Maintenance and repair: Tenants usually main - tain the interior, while landlords handle structural repairs and common areas. Some agreements may shift more responsibility to the tenant, particularly for long-term leases. • Rent payments : Rent is typically paid monthly, but quarterly or annual payments are common. Rent may be subject to periodic adjustments, and advance payments or security deposits are often required. 6.5 Rent Variation In Greece, the rent payable in a commercial lease typically does not remain the same throughout the lease term. While the initial rent is often fixed for a set period, it is common for rent to be adjusted during the lease term based on the following: • Rent may be linked to an inflation index, such as the Consumer Price Index, allowing for periodic rent increases based on inflation. • Some leases provide for market rent reviews at set intervals (eg, every two or three years), where rent is adjusted to reflect current market conditions. • The lease agreement may specify fixed rent increases at regular intervals, such as every one or two years. 6.6 Determination of New Rent If a change is agreed in the lease agreement, the change applies automatically without further formali - ties. If no specific change is provided by the lease agreement, the rent may be adjusted through a sub - sequent agreement. If no agreement is reached, the rent may be judicially determined. 6.7 Payment of VAT In Greece, VAT is generally applicable to commercial leases (Article 8 of Law 2859/2000) upon prior agree - ment by the parties. Landlords may also choose to opt for VAT instead of digital transaction duty (3.6%) on certain commercial properties, especially if they are VAT-registered businesses, so as to reclaim input
VAT on expenses related to the property. Short-term leases for tourism purposes may also be subject to VAT. The application of VAT depends on the type of property and lease arrangement. Residential leases are exempt from VAT. 6.8 Costs Payable by a Tenant at the Start of a Lease In Greece, aside from rent, tenants may need to pay the following costs at the start of a lease: • Security deposit (one to three months’ rent). • Agency fees, if applicable. • Utilities (eg, electricity, water, heating) and mainte - nance costs. • Insurance for the property or contents (depending on the terms of the lease agreement). These costs can vary based on the lease type and agreement terms. 6.9 Payment of Maintenance and Repair In Greece, maintenance and repair costs for common areas (eg, parking areas gardens) are typically shared among tenants based on the space they occupy, as outlined in the lease agreement. Alternatively, the landlord may cover these costs, with tenants reim - bursing through monthly service charges or common expenses. 6.10 Payment of Utilities and Telecommunications In Greece, utilities and telecommunications serving a property with multiple tenants are typically paid for in one of the following ways: • Individual metering: Each tenant is responsible for their own utility usage (eg, electricity, water, gas) based on individual meters. • Shared expenses: For common utilities (eg, build - ing-wide electricity, water), tenants share costs proportionally based on the size of each leased space or on a pre-agreed formula. • Landlord payment: The landlord may pay for certain utilities and then charge tenants based on the size of their leased space, in cases where the building lacks individual metering for each apart - ment.
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