GREECE Trends and Developments Contributed by: Panagiotis (Notis) Sardelas, Fay Vetouli and Lydia Dimakopoulou, Sardelas Petsa Law Firm
by Laws 3853/2010 and 4242/2014. Relevant legislation also includes Laws 4013/2011 (Arti - cle 15), 4373/2016 (Article 69) and 4335/2015 on procedural rules. Types of business lease The principal types of business lease include: • leases for commercial use (business activi - ties); • leases for professional use (pertaining to liberal professions such as lawyers, language schools, doctors, accountants, notaries and engineers – explicitly covered by Article 2 of Presidential Decree 34/1995); and • state/public leases (intended to accommo - date public authorities and organisations). Typical provisions for leases of business premises in Greece Length of term After the entry into force of Law 4242/2014, the minimum length of a business lease is three years, even when the lease agreement stipulates a shorter term. The parties may, however, agree on a term exceeding the minimum. Rent increases The lease agreement normally lays down the terms of any annual rent increase, typically infla - tion-index linked. In the absence of an explicit agreement, the landlord may claim adjustments by resorting to the competent court or, under certain conditions, to regional committees for the settlement and readjustment of rent. Tenant’s right to sell or sub-lease The tenant may not under any circumstances sell the leased property. On the other hand, a sub-lease is allowed, unless explicitly prohibited by the lease agreement.
Insurance Insurance is not compulsory; however, either party may choose to insure the leased premises on the basis of an entrepreneurial decision. Change of control of the tenant Change of control of a corporate entity tenant does not in any way affect the lease, nor confer any rights to the landlord. Transfer of lease as a result of corporate restructuring (eg, merger) Where the restructured corporate entity continues to exist and operate, corporate restructuring does not affect the lease. Typically, lease agreements reserve a tenant’s right to transfer the lease to a restructured corporate entity, while a restructured corporate entity landlord is deemed a successor of the initial landlord by default. However, in the event of the landlord’s bankruptcy, the new owner may evict the tenant within two months from the auction of the property Repairs The law stipulates that repair of damages due to typical or agreed usage burdens the tenant. All other damages burden the landlord. The lease agreement may stipulate otherwise. Taxes payable on rent either by the landlord or tenant of a business lease Landlords are subject to income tax on leases. Tax brackets are: • 15% for lease income up to EUR12,000; • 35% for lease income between EUR12,001 and EUR35,000; and • 45% for lease income over EUR35,000. Landlords are also subject to a solidarity levy ranging from 2.2% to 10% (depending on the total income) for annual income exceeding
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