GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
6.11 Payment of Property Taxes In Greece, the responsibility for real estate taxes relat - ing to rental property typically depends on the lease agreement. However, property taxes (ENFIA) and income tax on rent are generally the landlord’s respon - sibility, as they are levied on the property owner. In some cases, the lease agreement may require the tenant to cover certain taxes or expenses related to the property, such as special taxes or municipal fees. 6.12 Insurance Issues In Greece, while the general practice is that the owner insures the property and the tenant is responsible for insuring their contents and business operations, it is ultimately a matter of agreement between the parties, whereby the tenant may be responsible for insuring the property, including both the building’s structure and its contents. During the COVID-19 pandemic, ten - ants were occasionally able to recover costs through business interruption insurance for office closures and cleaning, though claims were subject to legal disputes and policy exclusions relating to pandemics. The state mandated that affected tenants pay only a portion of their rent (often 40%) for a period of forced closure, with the landlord receiving compensation from the government for the unpaid amount. 6.13 Restrictions on the Use of Real Estate Restrictions can be imposed by the landlord on how a tenant uses the real estate via the lease agreement (nature of the business, operating hours, subletting, noise, waste and emissions). Further restrictions may be imposed on property use, by zoning and planning laws, local building codes, fire safety, sanitation, pub - lic health regulations and environmental law. 6.14 Tenant’s Ability to Alter and Improve Real Estate In Greece, tenants may be permitted to alter or improve the real estate, but such changes typically require the landlord’s prior written consent. Conditions that may be imposed include ensuring the alterations comply with local regulations and building regulation, restoring the property to its original state at the end of the lease, and assuming responsibility for costs and liabilities arising from the works. Any changes that affect the structure or appearance of the property may have additional restrictions or requirements.
6.15 Specific Regulations In Greece, leases for different categories of real estate are governed by specific regulations. For residential leases, the minimum lease duration is three years, with no licensing required (Law 1703/1987, as amended and in force). For commercial leases, the minimum lease duration is three years, with no licensing required (Presidential Decree 34/1995, as amended and in force). Short-term rentals (eg, Airbnb) are typi - cally concluded for up to 59 days, require registration with the tax authorities and are governed by Article 111 of Law 4446/2016. A state/public lease is a con - tractual arrangement whereby the government rents properties from individuals through an auction pro - cess, typically for a minimum duration of 12 years, and is governed by Law 3130/2003. During the COVID-19 pandemic, the government implemented measures to support affected sectors, including rent reductions or deferrals for industries such as retail and hospitality, as well as financial assistance for businesses facing operational disrup - tions. Office and industrial tenants also received some rent relief. Additionally, the operation of businesses that were suspended by government order, as part of efforts to limit the spread of COVID-19 and protect public health, were extended for a period equal to the duration of the suspension of their economic activity, as specified in the regulatory acts issued regarding the suspension. 6.16 Effect of the Tenant’s Insolvency A tenant’s insolvency can lead to several outcomes: • Under Greek insolvency law (Law 4738/2020), the insolvency administrator may choose to either con - tinue or terminate the lease. • If the lease is continued, the tenant remains liable for rent payments. • If it is terminated, any unpaid rent becomes unse - cured debt, and the landlord can file a claim in insolvency proceedings, but recovery depends on available assets. • The landlord may use any security deposit or guar - antee to cover unpaid rent or damages, based on lease terms and insolvency procedures.
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