GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
6.4 Typical Terms of a Lease In Greece, typical business premises leases have the following terms: • Length of Lease Term: Generally, a lease ranges from three to ten years, with some leases extending up to 20 years. Shorter leases for less than three years are also pos - sible for temporary businesses. • Maintenance and Repair: Tenants usually maintain the interior, while landlords handle structural repairs and common areas. Some agreements may shift more responsibility to the tenant, especially for long-term leases. • Rent Payments: Rent is typically paid month - ly, but quarterly or annual payments are com - mon. Rent may be subject to periodic adjust - ments, 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 mar - ket 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
dential Decree 34/1995 as amended and in force. Short-Term Lease • Description: Leases of up to 59 days that are concluded through or outside digital plat - forms, provided that the property is rented furnished without the provision of any ser - vices 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 negotiated between the parties. However, by law, the minimum duration for a commercial lease is set at three years, bind - ing 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 97 of Law 5007/2022, as amended and in force, the rent for commercial leases under Presidential Decree 34/1995 can be increased by a maximum of 3% for the peri - od from 1 January 2025 to 31 December 2025, based on the rent of 2024. This rent adjustment rule does not apply to leases with: • REICs; • companies controlled by AIFs; • businesses operating shopping centres with a minimum area of 15,000 sq m; or • companies fully owned by the government and their subsidiaries.
391 CHAMBERS.COM
Powered by FlippingBook