GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
formalities. If no specific change is provided by the lease agreement, the rent may be adjusted through a subsequent agreement. If no agree - ment is reached, the rent may be judicially deter - mined. 6.7 Payment of VAT In Greece, VAT is generally applicable to com - mercial leases (Article 8 of Law 2859/2000) upon prior agreement by the parties. Landlords may also choose to opt for VAT instead of stamp 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 appli - cation 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 maintenance costs. • Insurance for the property or contents (depending on the terms of the lease agree - ment). 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 reimbursing through monthly service charges or common expenses. 6.10 Payment of Utilities and Telecommunications In Greece, utilities and telecommunications serv - ing a property with multiple tenants are typically paid for in one of the following ways: • Individual Metering: Each tenant is responsi - ble for their own utility usage (eg, electricity, water, gas) based on individual meters. • Shared Expenses: For common utilities (eg, building-wide electricity, water), tenants share costs proportionally based on the size of each leased space or on a preagreed 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 apartment. 6.11 Payment of Property Taxes In Greece, the responsibility for real estate taxes relating to rental property typically depends on the lease agreement. However, property taxes (ENFIA) and income tax on rent are generally the landlord’s responsibility, as they are levied on the property owner. In some cases, the lease agreement may require the tenant to cover cer - tain 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 prop - erty, including both the building’s structure and its contents. During the COVID-19 pandemic,
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