GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
• In light of the above, it is common practice to include a provision stipulating the termination of the contract in the event of the tenant’s insolvency. 6.17 Right to Occupy After Termination or Expiry of a Lease Under Greek law, a tenant does not have the right to remain in a commercial property after the expiry or termination of the lease unless tacit renewal has been agreed beforehand agreed or the landlord permits it. To ensure the tenant vacates the property, clear termi - nation clauses should be included in the lease, and if the tenant refuses to leave, eviction proceedings may be initiated. In the event that the tenant remains, they must pay compensation for the use of the property, along with a penalty if this is contractually agreed, typically as an increase in rent. 6.18 Right to Assign a Leasehold Interest Under Greek law, a tenant can assign their leasehold interest or sublease the property, either in whole or in part, only if the landlord agrees or if the lease explicitly permits it. In case of assignment, it is customary that the sublessee is jointly and severally liable with the ini - tial lessee towards the landlord while direct payment from sublessee to landlord may also be provided. 6.19 Right to Terminate a Lease Under Greek law, both landlords and tenants may ter - minate a lease for various reasons. Common grounds include non-payment of rent, breach of lease terms, expiration of the lease, and force majeure events. Both parties may also agree to terminate the lease early by mutual consent. If the property becomes uninhab - itable or is destroyed, the lease can be terminated. Additionally, if the tenant is unable to fulfil their obliga - tions (eg, due to insolvency), the landlord may termi - nate the lease. Residential leases may have special protections, while commercial leases are governed by specific terms agreed upon by the parties. 6.20 Registration Requirements In Greece, while a written lease agreement is recom - mended, it is not a constitutive requirement for valid - ity, provided that the lease is duly declared to the tax authorities.
Furthermore, although there is no mandatory require - ment under Greek law to register a long-term com - mercial lease with the Land Registry or Cadastre for it to be valid between the contracting parties, such registration is necessary to ensure the enforceability of the lease vis-à-vis any successor in title of the lessor in the event of a transfer of ownership of the leased property, following the lapse of nine years from the conclusion of the lease (Article 618 of the Greek Civil Code). Registration entails additional costs, typically borne by the lessee, including notarial fees for the execution of a notarial lease agreement, as well as Land Registry or Cadastre registration fees, which are calculated on the basis of the total rent payable over the full term of the lease. As regards taxation, commercial leases are generally subject to digital transaction duty (currently 3.6%), which is, as a matter of law, borne by the lessor. How - ever, in practice, the parties commonly agree contrac - tually for this cost to be assumed by the lessee. 6.21 Forced Eviction A tenant can be evicted for default before the lease term expires, primarily for non-payment of rent or breach of lease terms. The landlord must first serve a formal notice. If the tenant does not comply, the landlord may file for eviction through summary pro - ceedings, which typically take two to three months, or standard litigation, which can take over a year. During COVID-19, Greece imposed temporary evic - tion moratoriums, mainly for affected businesses, but these have now expired. No current restrictions apply, and eviction procedures have returned to pre- pandemic timelines. 6.22 Termination by a Third Party In Greece, a commercial lease can be terminated by third parties, such as the government or municipal authorities, in cases of expropriation or public interest projects. Expropriation requires a formal decree and compensation to the landlord, with the process tak - ing months or years if contested. Zoning changes do not affect existing leases. Compensation is typically paid to the landlord, while tenants may claim reloca -
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