GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
tenants 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 prop - erty use, such as zoning and planning laws, local building codes, fire safety, sanitation, public 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 typi - cally require the landlord’s prior written consent. Conditions that may be imposed include ensur - ing the alterations comply with local regulations, 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 com- mercial leases , the minimum lease duration is
three years, with no licensing required (Presiden - tial Decree 34/1995, as amended and in force). Short-term rentals (eg, Airbnb) are typically con - cluded 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 contractual arrangement whereby the govern - ment rents properties from individuals through an auction process, 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 sec - tors, including rent reductions or deferrals for industries such as retail and hospitality, as well as financial assistance for businesses facing operational disruptions. Office and industrial tenants also received some rent relief. Addition - ally, the operation of businesses that were sus - pended by government order, as part of efforts to limit the spread of COVID-19 and protect pub - lic 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 out - comes: • Under Greek insolvency law (Law 4738/2020), the insolvency administrator may choose to either continue or terminate the lease. • If the lease is continued, the tenant remains liable for rent payments. • If it is terminated, any unpaid rent becomes unsecured 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 guarantee to cover unpaid rent or damages,
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