Real Estate 2025 Comparisons

The right to ownership in Greece is protected by the Constitution (Article 17), which ensures property rights, subject to compliance with laws, especially those relating to public interest and environmental protection. The Civil Code, particularly Articles 1002 and 1117, forms the foundation of real estate property law, including the division of plots as well as horizontal and vertical ownership. Laws 3741/1929 and 1024/1971 govern the establishment of horizontal and vertical property. Additional regulations are found in the Code of Civil Procedure and Laws 2308/1995 and 2664/1998, which oversee procedures at the Cadastre Offices. Law 1337/1983 introduced measures for regulating construction outside urban planning areas, focusing on environmental protection. Established case law from the Supreme Court and civil courts also plays a key role in shaping property law in Greece.

The key trends in the real estate market over the past 12 months include increased demand, rising property prices increased foreign investment, more short-term rentals, and efforts towards sustainability and energy efficiency. Rising inflation and interest rates have slowed property sales, increased borrowing costs and reduced affordability. Nevertheless, the real estate market has shown an upward trend. In 2024, the value of real estate transactions surpassed EUR4 billion.

In December 2024, the first ever merger of real estate investment companies (REICs) was completed with the merger by absorption of Intercontinental International REIC by BriQ Properties REIC through a multi-phase transaction, including a real estate asset deal with a total gross consideration of EUR60.5 million, a distribution phase involving a major return of capital and dividend distributions, as well as the ultimate merger of two listed REICs with a combined real estate investment portfolio with a gross asset value exceeding EUR280 million.

Real estate stakeholders are embracing blockchain, PropTech and DeFi, repurposing offices for residential use, exploring alternative financing, navigating foreclosures, and adapting to shifting interest rates and central bank policies.

Proposals for reform that would make the Greek real estate market more efficient, transparent and attractive to investors could be:

• A clear legal framework for escrow arrangements with segregated client accounts could streamline asset and share deal transactions, providing security and transparency for investors.
• Establishment of alternative investment funds (AIFs) with less strict limitations in real estate eligibility criteria would attract domestic and international investment, enhancing real estate market liquidity and enabling large-scale projects.
• Completion of the recording of all private and public property in the Cadastre would ensure accurate property ownership records, reduce disputes and improve transaction security.
• Digitalisation and simplification of property transfer procedures would speed up transactions, lower costs and reduce administrative burdens, benefiting both buyers and developers.

• Full Ownership: The universal right in rem that can be either absolute (100% ownership) or divided into undivided co-ownership interests among two or more people who jointly enjoy and exercise it.
• Bare Ownership: A limited right in rem consisting of the legal title in a real estate property but deprived of the right to use or benefit from the property. Bare ownership derives from the granting of a usufruct. Upon the usufructuary’s death or the expiry of a usufruct established for a specific period of time, the bare owner becomes the full owner. Bare ownership can subsist in any undivided co-ownership interest.
• Usufruct: A personal servitude allowing the usufructuary to use and benefit from the property, though the ownership remains with the bare owner. Usufruct can be established in any undivided co-ownership interest in a property.
• Right of Habitation: A personal servitude granting the right to reside in someone else’s property or part thereof until the beneficiary’s death.
• Easements: A limited right in rem allowing the owner of one property (dominant estate) to use another property (servient estate) for specific purposes (eg access).
• Hypothecation: An encumbrance over real estate property established as security for the preferential satisfaction of its beneficiary in the repayment of the secured claim.
• Real Right on Surface: Introduced in 2011, this allows the Greek State to grant third parties the right to exploit the surface of public land for up to 99 years, without transferring ownership of the land itself.

The transfer of title is primarily regulated by the Civil Code, which governs property transactions, including sales (Article 513 et seq), gifts (Article 496 et seq) and inheritance (Article 1193), and it is consistent across all property types. The Civil Code outlines the requirements for the validity of the transfer, such as a notarial deed and registration in the Land Registry or Cadastre Office. Payment of real estate transfer tax or inheritance tax is also obligatory for the transfer of title.

Transfer of title may be restricted in border areas, forestry areas, archaeological sites, and coastal and beach zones. There are also environmental restrictions (an energy performance certificate is necessary before the transfer of title).

The lawful transfer of real estate title is executed by virtue of a notarial deed, which must be countersigned by both parties in the presence of a notary public.

The notarial deed must be registered in the local Land Registry or Cadastral Office to establish ownership and provide legal evidence of property rights.

Title insurance is not as common in Greece as it is in some other countries. Buyers typically rely on the Land Registry or Cadastral Office records and often conduct thorough due diligence to verify title and encumbrances before purchase.

• Legal Due Diligence (Title Search): An on-site search is conducted at the local Land Registry and the Cadastre, if the property is located in an area with an operational Cadastral Office, to verify the property’s title. This includes confirming the title history including the proper transfers by predecessors in title, any encumbrances and any restrictions on property use.
• Technical Survey: If the property is land or outside urban planning limits, the buyer should hire an engineer to conduct a survey and confirm the property meets construction requirements and any related restrictions. For properties with existing buildings, the buyer should review the building permit to ensure compliance with approved plans and verify that any unauthorised construction has been legalised through proper filings and payment of fines.
• Tax Due Diligence: The buyer must ensure that all taxes related to the property’s acquisition by the seller have been paid before proceeding with the purchase. In case of corporate acquisition, full-scope tax due diligence is conducted on the target entity, including in particular for its qualification for an exemption from the special real estate property tax. This is an annual tax that amounts to 15% of the value of the property under the provisions of Article 15 of Law 3091/2002, which was introduced as a special anti-avoidance tax rule.

This process helps ensure the property is legally sound, meets construction requirements and has no outstanding financial issues.

In commercial real estate transactions, sellers typically provide representations and warranties regarding their authority to sell, their ownership of the property, their compliance with laws, and the absence of encumbrances and other third-party rights in rem or in contract. Seller warranties may also include disclosures about property conditions, such as structural integrity and hazardous materials, as mandated by state laws. Corporate acquisitions include significantly more extensive warranties.

Common buyer remedies for seller misrepresentation include rescission, action for damages, and specific performance, often secured by earnest money deposits.

Seller warranties usually expire within five years.

No liability cap is customary in outright real estate acquisitions, while the cap in share deals is usually set to the transaction value but may vary.

W&I insurance is increasingly utilised to mitigate risks in transactions, even in those involving non-operational real estate holding vehicles.

When investing in real estate in Greece, key legal areas to consider include property ownership laws, zoning regulations and due diligence requirements. Investors should be aware of the legal framework governing foreign ownership, as there may be restrictions in certain areas. Tax implications, including transfer taxes and property taxes, are crucial for financial planning. Additionally, understanding contractual obligations in purchase agreements, as well as the implications of the Civil Code on property rights, is essential. Lastly, engaging with local notaries and legal advisers can help navigate the complexities of Greek real estate law effectively.

In Greece, real estate transactions are governed by the Civil Code and environmental laws. Buyers may be liable for existing soil pollution, regardless of causation. Conducting thorough due diligence, including environmental assessments, is essential. Due to varying legal circumstances, buyers should consult legal and environmental professionals before proceeding with transactions.

To determine permitted uses of a parcel of real estate, buyers should review local zoning ordinances, consult the zoning map, and contact the planning or zoning department. Obtaining a title report and consulting a real estate attorney can clarify restrictions. Additionally, entering into development agreements with public authorities can facilitate projects by outlining terms for collaboration and resource allocation, ensuring regulatory compliance, and addressing public interests to streamline the development process.

In Greece, expropriation or compulsory purchase (Law 2882/2001, as amended and in force) is classified into compulsory expropriation, which is done for specific projects such as schools or churches, and urban planning expropriation, which occurs as part of broader urban development, such as creating city plans or opening roads. The procedure aims to promote public interest and typically involves the following steps:

• Declaration of Public Interest: The government must declare the project as serving a public interest.
• Notification: Affected landowners are notified of the intention to expropriate their property.
• Valuation: An assessment of the land’s value is conducted to determine compensation.
• Compensation Offer: The government offers compensation based on the valuation.
• Legal Proceedings: If disputes arise, landowners can appeal the compensation amount in court if they believe it is insufficient.

Real estate transactions are subject to several taxes, most notably a 3.09% transfer tax on the property’s assessed value or the purchase price, whichever is higher. The transfer tax is paid by the buyer just before signing the notarial deed, along with the submission of the tax declaration.

In share deals, any income derived from the capital gain on the transfer of the shares is subject to capital gains tax borne by the transferor.

Partial ownership transfers also incur taxes. Specific categories of individuals are eligible for a tax exemption, provided that the property is solely used as their primary residence.

Foreign investors can acquire real estate, but certain restrictions apply:

• Non-EU nationals (individuals or legal entities) are prohibited from purchasing land or acquiring any real property rights in areas of Greek territory designated as border regions or military zones, without prior approval from the Greek State (Articles 25 and 26 of Law 1892/1990, as amended and in force).
• The issuance of a Greek tax identification number is required to complete an asset transaction.

In Greece, acquisitions of commercial real estate are financed through a variety of channels, including the acquirer’s own equity, traditional bank loans, private equity, real estate investment funds, and corporate debt and bond loans. For larger transactions, joint ventures and more complex financing structures involving syndicated loans are commonly used, particularly when acquiring entire real estate portfolios or companies holding significant real estate assets.

In Greece, commercial real estate investors typically secure financing through various security interests. The most common is a pre-notation of hypothecation or a hypothecation on the property. These encumbrances serve a similar transactional purpose to a common law mortgage, which involves the transfer of legal ownership from the mortgagor to the mortgagee. However, Greek law does not recognise the split between legal and beneficial (equitable) ownership. Thus, hypothecation operates as a charge, whereby the hypothecator retains the encumbered ownership of the real estate property, while the hypothecatee is granted a security interest which does not include a right of foreclosure but rather a claim for judicial sale by auction in case of default.

Other common securities in corporate lending include personal or corporate guarantees, pledges of shares and pledges of claims by way of assignment, including most notably claims arising out of or in connection with bank accounts, lease agreements, management agreements, other real estate operation arrangements and insurance contracts. For development projects, pledges of claims include claims arising under or in connection with construction, operation and maintenance. Additionally, floating charges and subordination agreements are part of security packages.

In Greece, there are no significant restrictions on granting security over real estate to foreign lenders, nor on making repayments to foreign lenders under security documents or loan agreements, as long as the foreign lender complies with Greek property laws. Similarly, there are no restrictions on repayments to foreign lenders, although payments may be subject to withholding taxes and foreign regulations. Exceptions apply to real estate property near the Greek borders, where specific restrictions exist for foreign acquirers.

Granting of Security

The granting of security involves court fees and lawyer fees, registration fees (Land Registry or Cadastral Office), and notarial fees in case the security is granted via notarial deed.

The establishment of the security interests of (i) pre-notation of hypothecation, (ii) hypothecation, (iii) notional pledge and (iv) floating charge are subject to a registration fee at the competent public registry proportional to the secured amount (currently around 0.8%). However, the recently enacted Law 5142/2024 stipulates that the flat and proportional fees will be redefined by virtue of a joint decision by the Ministers of Digital Governance and Economy, following input from the Cadastre.

Specifically, for collateral for bond loans, a flat fee of EUR100 currently applies for each registration of security interests with the relevant public registries.

As regards hypothecation deeds, where a public notary needs to be involved, the notarial fees are in the range of 0.2%–1% of the secured amount. However, if the notarial hypothecation deed is provided as collateral for a bond loan financing, then only a fee amounting to EUR2,500 per deed will apply. With regard to pre-notation of hypothecation, the legal costs for the application and issuance of the court order for each hypothecation pre-notation amount to approximately EUR600, excluding VAT.

Enforcement of Security

The enforcement of security involves notary fees, court fees (if enforcement actions require court proceedings), registration fees (Land Registry or Cadastre Office) and transfer tax, which is calculated as a percentage of the value of the transaction. Legal fees for the services of lawyers in enforcing the security agreements should be considered.

Perfection requirements must be complied with for the valid establishment of a security, mainly involving registrations in the competent Land Registry or Cadastre.

Granting of security by corporate entities in the form of sociétés anonymes is further subject to potential related party transaction approvals and financial assistance restrictions. In particular, a special approval process for related party transactions is provided under Articles 99 to 101 of Law 4548/2018 for sociétés anonymes, which require approvals from the board of directors and potentially from the general meeting of shareholders, which are subject to publication formalities before the execution of the transaction. Financial assistance rules include restrictions on the granting of guarantees or other security interests in favour of purported acquirers or affiliate entities, and whitewash resolutions involve positive corporate benefit assessments.

• Formalities: The process of enforcing real estate security in Greece requires a court procedure and potentially a judicial sale by auction. The lender must ensure that the security is validly created and perfected. For security interests established under Legislative Decree 17.7/13.8.1923, with regard to companies under the legal form of a société anonyme, for the benefit of credit institutions, enforcement is more streamlined: no enforceable title is required, while secured creditors may publish a notice for the public auction of the pledged assets immediately, bypassing the three-day waiting period that applies in the standard enforcement procedure. The most expedited and straightforward enforcement process is set out for the realisation of security in the form of financial collateral. Aside from not requiring an enforcement title or the three-day waiting period, the financial collateral can be sold directly by the creditor, or the creditor may acquire ownership of the collateral and set off its value against the financial obligations owed by the debtor.
• Priority: The lender’s priority is determined by the timing of the registration of the security interest in the relevant registry, and the general rule “first in time, first in right” (prior tempore, potior jure). There is a ranking of creditors with preferences, such as the preferential rights of the public (eg, tax authorities), employees (eg, wages) and hypothecatees, but also a prescribed part for unsecured creditors. These rankings determine the order in which creditors are paid in the event of liquidation or bankruptcy, with some creditors having priority over others.
• Timeframe: The process can take from six to 18 months to complete, depending on the complexity and any disputes raised by the borrower.
• Pandemic Restrictions: Most pandemic-related restrictions have been lifted, though certain protections for vulnerable borrowers may remain.
• Market Activity: Lenders are more likely to opt for forbearance or restructuring rather than immediate enforcement procedures, and there is a vibrant market for non-performing loans, with active interest from investors.

In Greek banking and finance practice, the priority of claims among a group of lenders or between two separate groups of lenders can be contractually varied by entering into a subordination or intercreditor agreement. This is a common practice in syndicated loans or mezzanine finance structures involving different debt tranches.

Contractual subordination provisions should remain effective in the insolvency of a borrower incorporated in Greece so long as they do not alter the statutory ranking of creditors and do not conflict with mandatory provisions of insolvency law (eg, claims with a general privilege may override contractual subordination).

If the lender takes control of the property (eg, through enforcement of the security and especially by virtue of exercise of step-in rights), they may be considered an “operator” under environmental laws and could be responsible for remediation of contamination. Lenders who take control of real estate can be exposed to environmental liability, especially if they fail to properly manage environmental risks, even if they did not cause the contamination themselves.

In Greece, when a borrower, security provider or guarantor becomes insolvent, lenders may face the following risks:

• Automatic Stay on Enforcement: Upon the declaration of insolvency, a temporary stay may be imposed on creditors’ enforcement actions, which can delay them from realising their security. While secured creditors maintain priority, their ability to immediately enforce security may be limited, particularly during restructuring efforts.
• Claw-Back of Transactions: Lenders face the risk of claw-back actions, which can nullify transactions made in the period leading up to the insolvency declaration. This can include preferential payments or transfers of assets that occurred within a “suspect period” prior to insolvency.
• Challenges to Guarantees: Guarantors may attempt to escape liability if the guarantee is not structured to cover amendments to the loan or changes in the financial status of the borrowing company.
• Decline in Asset Value: Delays in the liquidation process or deteriorating market conditions may reduce the value of the assets securing the credit, further impacting the recovery for secured creditors. If liquidation is not completed within 18 months, piecemeal liquidation might be imposed, which can yield lower returns.

Digital Transaction Duty is levied on interest-bearing and interest-free loans, as well as all types of credits, including those equated with loans and credit cards, at a rate of 2.4% or 3.6%, with a cap of EUR150,000 per loan. For the sake of clarity, Digital Transaction Duty is not imposed on loan interest, bond loans issued under Law 4548/2018 and bank loans.

Bank loans (other than bond loans) are subject to a levy pursuant to Law 128/1975 which is imposed on credit (rate around 0.6%).

Payments of interest under bond loans are subject to withholding tax, which amounts to 15%. There is no withholding tax for other types of bank credit arrangements.

The hypothecation registration fees under credit facilities are proportional to the secured amount (currently around 0.775% of the secured amount), with the exception of collateral for bond loans, where a significantly advantageous flat fee for each registration of security interests with the relevant public registries applies, which amounts to EUR100. As regards the hypothecation deeds, where a public notary needs to be involved, the notarial fees are in the range of 0.2%–1% of the secured amount. However, if the notarial hypothecation deed is provided as collateral for a bond loan financing, then only a fee amounting to EUR2,500 per deed will apply.

In Greece, planning and zoning are governed by a combination of national legislation, regional planning frameworks and local regulations. The key legislation and controls governing planning and zoning are as follows.

Key Legislation

• The New Building Code (NOK) Law 4067/2012: The fundamental law outlining zoning, land use and building regulations across Greece. It defines land use types (residential, commercial, industrial), building height, density and other urban development parameters.
• Spatial Planning – Sustainable Development and Other Provisions (Law 4417/2016): Focuses on sustainable development, regional development, and the creation of regional and local spatial plans. It integrates environmental protection and promotes balanced regional growth.
• Specific Presidential Decrees: Determine land uses by region.
• Environmental Framework Law (Law 1650/1986): Governs environmental protection and requires Environmental Impact Assessments (EIAs) for significant developments, ensuring that projects do not harm natural resources.
• Natura 2000: A special regulation for protecting areas of ecological importance, which imposes stricter development restrictions in these zones.

Governmental Bodies

• Ministry of Environment and Energy: Responsible for national spatial policies, environmental protection and overseeing planning regulations.
• Ministry of the Interior: Oversees local government policies and the creation of local urban plans.
• Local Municipalities: Implement zoning and urban planning within their jurisdictions, issuing building permits and enforcing compliance.
• Ministry of Culture: Regulates development near archaeological sites and cultural heritage areas.

Types of Plans

• General Urban Plans: Created by local municipalities to guide urban development within cities, defining land use and infrastructure.
• Special Zoning Plans: Provide detailed regulations for specific areas, such as tourism zones or industrial zones.
• Regional Spatial Plans: Guide land use and development on a larger, regional scale, co-ordinating infrastructure and economic activities across multiple municipalities.

Zoning Controls

• Land Use Designations: Different zones are designated for residential, commercial, industrial or agricultural purposes, each with specific regulations on construction, density and usage.
• Environmental Protections: Areas of ecological or cultural importance (eg, Natura 2000 sites) are subject to stricter regulations.

In Greece, the design, appearance and construction methods of new buildings or refurbishments are governed by a combination of national legislation, local regulations and environmental laws. Key controls include:

• Presidential Decree 305/1996 (Government Gazette 212/A’ 29.8.1996): Sets out the minimum safety and health requirements applicable to temporary or mobile construction sites, in compliance with Directive 92/57/EEC.
• Law 4787/2021 (Article 23 et seq): Concerns the establishment of a special committee for structurally unsound buildings, etc.
• Provisions on Hazardous Buildings: Under Article 5 of Presidential Decree 13/1929 (Government Gazette A’ 153).
• The New Building Code (NOK) (Law 4067/2012): Establishes general rules for zoning, building design, height, materials and construction safety.
• Energy Performance of Buildings (Law 4122/2013): Requires energy performance compliance for new and refurbished buildings, including insulation and renewable energy integration.
• Environmental Protection Laws (Law 1650/1986): Mandates EIAs for significant developments, particularly in sensitive areas.
• Cultural Heritage and Natura 2000 Regulations: Strict rules apply to buildings near archaeological sites or protected environmental areas, ensuring preservation.
• Local Municipality Controls: Local governments set design and construction standards to ensure new projects align with the area’s urban character and public infrastructure requirements.
• Seismic and Fire Safety: Regulations ensure buildings are resistant to earthquakes and meet fire safety standards.

All construction projects require building permits, and qualified professionals (architects, engineers) are responsible for ensuring compliance with all legal and technical requirements.

In Greece, the development and use of individual real estate parcels are regulated by national laws, local urban plans and environmental protections. Key authorities involved include the Ministry of Environment and Energy, municipalities (urban planning authorities) and the Ministry of Culture (for heritage sites). Major legislation includes the new Building Code (NOK) (Law 4067/2012), the Spatial Planning Law (Law 4417/2016) and environmental laws such as Law 1650/1986. These rules ensure sustainable, safe and appropriate development, with restrictions on land-use changes and requirements for permits, environmental assessments and heritage protection.

In Greece, obtaining entitlements for new developments or major refurbishments involves applying for building permits, complying with zoning laws, and conducting an EIA for larger projects. Local municipalities and regional authorities oversee the process, ensuring compliance with urban planning regulations. Third parties, including neighbours and environmental groups, can participate through public consultations and raise objections. Legal challenges can be made via administrative appeals or judicial review. Key legislation includes the Town Planning and Building Code, Environmental Protection Law and Cultural Heritage Law.

The primary legal remedy against an authority’s decision is an annulment application. A building permit can be challenged through an annulment application before the competent Administrative Court of Appeal (under Article 1, paragraph 1, subparagraph (θ) of Law 702/1977). According to Article 46, paragraph 1 of Presidential Decree 18/1989, the 60-day deadline for filing an annulment application begins when the party concerned becomes fully aware of the issuance and content of the contested act.

If the law requires the prior submission of an administrative appeal, failure to follow this procedure makes any subsequent legal remedy inadmissible, and the court will not examine it.

In Greece, a special legislative framework is provided under Law 4864/2021, which grants specific privileges through a defined process for strategic investments. In any case, if an investor wishes to implement a project with an impact on the national economy, they may submit a proposal to the competent public authorities. Following the evaluation, provided that it is determined that the investment will have a significant positive impact on the economy and public interest, the authorities may enact legislation to facilitate the project’s implementation, addressing aspects such as permitted uses, building rights, environmental considerations and other relevant factors.

In Greece, development and land-use restrictions are enforced by local municipalities, regional authorities and the Ministry of Environment and Energy. They conduct inspections, issue fines, and can halt or demolish unauthorised developments. Violations may lead to criminal charges or legal actions. Public complaints and judicial appeals can also trigger enforcement actions.

Real estate assets can be acquired by any individual or entity. Foreign entities can acquire rights in rem over Greek real estate provided that they have acquired a tax identification number. The exploitation of real estate is mostly made via limited liability entities. The main types of entities are the société anonyme (S.A.), which is a company limited by shares, and the private company, which is also a limited liability entity. Real estate mutual funds and REICs also exist, which are governed by the special legal framework of Law 5193/2025.

The shareholders of a société anonyme and the partners of a private company are not liable for any obligation of the company, which is a distinct legal person that carries its assets and liabilities separately from its members. The contribution of real estate property in exchange for the issuance of shares of a société anonyme or share parts of a private company requires its prior independent valuation to protect its creditors from overvaluation. In the event that the transfer of the real estate property is made in the context of the incorporation of the entity in the form of contribution in kind of any part of the initial capital, the incorporation must be made via a notarial deed by virtue of which both the incorporation of the entity and the transfer of the real estate property are consummated. The corporate income tax for both sociétés anonymes and private companies is equal to 22% on taxable profits, and a withholding dividend tax of 5% applies to any dividend distribution subject to exemptions for intragroup dividend distributions and distributions to foreign entities domiciled in jurisdictions with which the Hellenic Republic has signed a double taxation avoidance agreement.

The split between legal and beneficial ownership is not recognised under Greek law and real estate investment trusts do not exist, but Greek tax law recognises foreign trusts as legal entities without separate legal personality. In addition, Law 2778/1999, as amended and in force, sets out the special legal framework for real estate mutual funds and REICs, which are both institutions licensed by the Hellenic Capital Markets Commission.

REICs operate in the form of sociétés anonymes, but are governed by the special legal framework of Chapter E of Law 5193/2025 (Articles 40 to 60). A REIC is a société anonyme with the sole purpose of acquiring and managing real estate. REICs are institutional entities, and their lawful operation requires the obtaining of a licence from the Capital Market Commission. In order to grant an operating licence, the Capital Market Commission evaluates the technical and financial resources of the company, the reliability and experience of the members of the management team with a particular focus on the sector of real estate and the development and exploitation of real estate, as well as the suitability of the persons who hold, directly or indirectly, a qualifying participation to ensure the sound management of the company, as well as the existence of corporate governance rules. Within two years from the issuance of its licence as a REIC, its shares must be listed on a regulated market based in Greece; such deadline may be extended by an additional period of up to 36 months by Capital Markets Commission upon application of the company. At the time of submission of the application for the listing of its shares in a regulated market and in any case upon the lapse of three years from its incorporation, the REIC’s share capital must be invested at least 50% in real estate. Subsequently, the REIC is subject to the supervision of the Capital Market Commission both as a listed company bound by the relevant regulatory provisions and with regard to compliance with the specific applicable legislative framework.

Real estate mutual funds have not been so popular in Greece, but REICs have gained significant popularity over the past years due to their special tax treatment and other tax incentives especially for foreign investors. In particular:

• REICs are subject to a special corporate tax calculated at a rate equal to 10% of the interest rate provided by the European Central Bank for main refinancing operations increased by one percentage point imposed on the average of the fair market value of their investments including cash items. The special tax exhausts the obligations of the company for income tax in respect of their income from the investment real estate properties;
• no dividend withholding tax is imposed on dividends distributed by REITs, but REICs are required to pay a minimum annual dividend equal to 50% of their annual net profits, excluding those related to capital gains from the sale of real estate, unless otherwise agreed with by the general meeting of shareholders with an increased majority of 80%;
• REICs are exempt from the real estate transfer tax upon the purchase of real estate (3.09% of the value of the property); and
• the acquisition of shares in a REIC constitutes an eligible investment for the purposes of the alternative taxation regime for foreign-sourced income of natural persons who transfer their tax residence to Greece under Article 5A of Law 4172/2013, as well as to the residence permit regime for investment activity under Article 16 of Law 4251/2014, provided that the REIC’s investments are made exclusively in Greece.

Following the introduction of Law 5193/2025, the eligible investments of REICs have been expanded to include, inter alia, the exploitation and management of real estate for the purpose of commercial profit or any other benefit, for any residential, industrial, commercial or other purpose, including but not limited to hotel and general tourist activity, the exploitation of energy production and storage structures from renewable energy sources, and the exploitation of parking spaces, marinas, shopping centres, parks or data centres.

The minimum share capital for the establishment of a société anonyme is EUR25,000. The establishment of a private company requires the issuance of at least one share part with a minimum nominal value of EUR1. The corporate capital of the private company may be formed by capital contributions in cash or in kind, non-capital contributions of work, services or other assets not subject to valuation and/or guarantee contributions consisting of an undertaking of liability for obligations of the company vis-à-vis third parties. The minimum required share capital for a société anonyme to be licensed as a REIC was raised to EUR40 million with the introduction of Law 5193/2025, which must be contributed in full and may consist of contributions in cash and money market instruments, real estate or tradeable instruments that serve the operational needs of the company, as well as shares of companies that invest in or exploit real estate. REICs must maintain at all times an equity position at least equal to EUR40 million.

There are no special corporate governance requirements for entities merely from investing in real estate, other than REICs, which are subject to the corporate governance requirement as listed entities. However, entities that have invested in real estate in Greece must ensure compliance with the exemptions from the special real estate property tax, an annual tax which amounts to 15% of the value of the property, under the provisions of Article 15 of Law 3091/2002, which was introduced as a special anti-avoidance tax rule. Listed and other regulated entities including REICs qualify ex lege for the exemption from the obligation to pay special real estate tax, while business exemptions also apply for certain commercial activities, and other miscellaneous exemptions apply for charitable, cultural, religious and educational causes. The most common exemption is the disclosure exemption, which requires, inter alia, the issuance of Greek tax identification numbers from all individual ultimate beneficial owners of the real estate company regardless of their direct or indirect equity interest and voting rights in the company. By virtue of Decision A. 1089/2023, the disclosure exemption has been extended to legal entities owning Greek real estate held by a foreign trust, provided that the trust is established in a jurisdiction that is not considered a non-cooperative tax jurisdiction.

The annual entity maintenance and accounting compliance costs of entities investing in real estate vary significantly depending on the portfolio of real estate owned by the entity and the type of exploitation (eg short-term residential lease, long-term commercial lease, direct operation as main or non-main tourist accommodation, etc). Compliance costs are notably higher for REICs, which have the obligation to comply with International Financial Reporting Standards and to publish semi-annual investment sheets of their real estate assets based on the valuations of an independent valuer accompanied by the report of an auditor or audit firm, while public companies are subject to the legal framework of listed companies, which requires the publication of semi-annual financial statements and other regular financial disclosures.

In Greece, legal arrangements that allow the temporary use of real estate without ownership include contractual arrangements such as lease and sublease agreements, loans for use (gratuitous grant of use), time-sharing, tenancies at will, leases with option to buy, and concessions, as well as limited rights in rem such as servitudes (eg, usufruct or right of habitation). These uses of real estate vary in duration and terms, depending on the agreement and the arrangement type. Each arrangement is governed by specific provisions in the Civil Code.

Here is a summary of the types of leases in Greece:

Commercial/Professional Lease

• Description: Leases for retail, office or industrial properties to businesses or professionals (par. 2, Presidential Decree 34/1995).
• Duration: Minimum 3 years.
• Legal Framework: Governed by the Civil Code (Articles 574 to 594) and mainly Presidential 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 platforms, provided that the property is rented furnished without the provision of any services other than bed linen.
• Duration: Up to 59 days.
• Legal Framework: Governed by Article 111 of Law 4446/2016.

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, binding 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 period 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.

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 possible 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 monthly, but quarterly or annual payments are common. Rent may be subject to periodic adjustments, and advance payments or security deposits are often required.

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 market conditions.
• The lease agreement may specify fixed rent increases at regular intervals, such as every one or two years.

If a change is agreed in the lease agreement, the change applies automatically without further formalities. If no specific change is provided by the lease agreement, the rent may be adjusted through a subsequent agreement. If no agreement is reached, the rent may be judicially determined.

In Greece, VAT is generally applicable to commercial 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 application of VAT depends on the type of property and lease arrangement. Residential leases are exempt from VAT.

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 agreement).

These costs can vary based on the lease type and agreement terms.

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.

In Greece, utilities and telecommunications serving a property with multiple tenants are typically paid for in one of the following ways:

• Individual Metering: Each tenant is responsible 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.

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 certain taxes or expenses related to the property, such as special taxes or municipal fees.

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 property, including both the building’s structure and its contents. During the COVID-19 pandemic, 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.

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 property use, such as zoning and planning laws, local building codes, fire safety, sanitation, public health regulations and environmental law.

In Greece, tenants may be permitted to alter or improve the real estate, but such changes typically require the landlord’s prior written consent. Conditions that may be imposed include ensuring 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.

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 commercial leases, the minimum lease duration is three years, with no licensing required (Presidential Decree 34/1995, as amended and in force). Short-term rentals (eg, Airbnb) are typically concluded 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 government 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 sectors, 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. Additionally, the operation of businesses that were suspended by government order, as part of efforts to limit the spread of COVID-19 and protect public 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.

A tenant’s insolvency can lead to several outcomes:

• 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, based on lease terms and insolvency procedures.

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.

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 or the landlord permits it. To ensure the tenant vacates the property, clear termination 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.

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 initial lessee towards the landlord while direct payment from sublessee to landlord may also be provided.

Under Greek law, both landlords and tenants may terminate 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 uninhabitable or is destroyed, the lease can be terminated. Additionally, if the tenant is unable to fulfil their obligations (eg, due to insolvency), the landlord may terminate the lease. Residential leases may have special protections, while commercial leases are governed by specific terms agreed upon by the parties.

In Greece, pursuant to Article 618 of the Civil Code, a property lease for a period longer than nine years is only valid against a new owner following the lapse of its ninth anniversary if it is executed with a notarial deed and the deed is registered. However, commercial leases do not require registration with the Land Registry or Cadastre to be enforceable against third parties. While a written lease is recommended, it is not mandatory as long as it is registered with the tax authorities. Registration fees vary, and stamp duty amounts to 3.6% of the annual rent. These costs are typically borne by the tenant unless otherwise agreed. Notary fees may apply if the lease is notarised.

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 proceedings, which typically take two to three months, or standard litigation, which can take over a year.

During COVID-19, Greece imposed temporary eviction moratoriums, mainly for affected businesses, but these have now expired. No current restrictions apply, and eviction procedures have returned to pre-pandemic timelines.

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 taking months or years if contested. Zoning changes do not affect existing leases. Compensation is typically paid to the landlord, while tenants may claim relocation costs or damages if provided by law or contract. The lease agreement may include specific terms on compensation and early termination in such cases.

If a tenant breaches a commercial lease, the landlord may claim unpaid rent, eviction and damages. Under Greek law, damages are not unlimited; the landlord can recover actual losses, including lost rent for the remaining term, provided that they take reasonable steps to mitigate losses. Penalty clauses for early termination are enforceable if agreed in the lease.

Landlords typically hold security deposits, usually equal to one to three months’ rent, in cash or bank guarantee (letter of credit). The deposit is returned upon lease expiry if no outstanding obligations exist.

The most common pricing structures for construction projects are fixed price (lump sum), cost-plus and unit-price contracts. Fixed price arrangements provide certainty, as the contractor delivers the project at an agreed-upon price regardless of actual costs. Cost-plus contracts reimburse the contractor for actual costs incurred, plus an agreed margin, offering flexibility but limited predictability. Unit-price structures establish fixed rates per unit of work, combining elements of certainty and flexibility, especially for projects where exact quantities are uncertain. The choice depends largely on the project’s complexity, scope clarity, risk allocation preferences and the level of control desired by the parties involved.

Common methods include Design-Bid-Build, Design-Build and Construction Management models. In Design-Bid-Build, responsibility rests fully with the owner’s architects or engineers, with contractors responsible only for execution. Design-Build assigns both design and construction duties to a single entity, streamlining accountability, reducing disputes and enhancing efficiency. The Construction Management method separates design and construction but involves a construction manager co-ordinating early on, offering greater flexibility and control to the owner. Allocation of responsibilities depends on project complexity, timelines, cost predictability and the owner’s expertise, balancing risk management with clear accountability.

Key contractual devices used to manage construction risk include indemnification clauses, warranties, limitation of liability provisions, and waivers of consequential damages. Indemnifications allocate responsibility by obligating parties to compensate for specified losses. Warranties ensure work quality and performance standards. Limitations of liability cap potential exposure, providing predictability, while waivers exclude recovery for certain indirect damages. However, these provisions are subject to legal constraints, including statutory prohibitions against gross negligence, intentional misconduct or unfair contractual terms. Courts frequently scrutinise such clauses for reasonableness and clarity, ensuring they do not contravene public policy or mandatory laws governing construction contracts.

Schedule-related risks are managed primarily through contractual mechanisms, including milestone deadlines, liquidated damages, bonus incentives and detailed delay provisions. Parties often agree upon liquidated damages, entitling owners to monetary compensation if specified milestones or completion dates are missed, providing predictability and incentivising timely performance. Contracts typically include clear definitions of excusable versus non-excusable delay, force majeure clauses and extension of time provisions. While parties have considerable flexibility in structuring such terms, courts commonly require that liquidated damages provisions represent genuine pre-estimates of loss, rejecting clauses that function as penalties or disproportionately punitive measures.

It is common for project owners to require additional security measures to ensure contractor performance, particularly on high-value or complex projects. Frequently used security devices include performance bonds issued by third-party sureties, letters of credit from financial institutions, parent company guarantees, escrow accounts holding funds pending performance milestones and retention amounts withheld from interim payments. The choice depends on factors such as project complexity, contractor creditworthiness and the owner’s risk tolerance. Such measures provide reassurance and financial protection, but their enforceability and practicality depend on clearly drafted contractual terms and compliance with local legal requirements or market practices.

Contractors and designers commonly have statutory lien rights permitting them to encumber a property if they are not paid for their work. Procedures for recording such liens vary by jurisdiction, typically requiring formal notices and filings within strict deadlines. Owners can remove liens by paying the underlying obligation, negotiating a settlement or contesting validity through legal channels, including court actions or arbitration. Alternatively, owners may post a bond or security to discharge liens pending resolution. Ensuring timely payments and carefully monitoring lien procedures are crucial preventative measures to protect against property encumbrances and associated disputes.

A certificate is issued by the competent urban planning authority confirming that the building has been constructed legally and can therefore be inhabited or used. Prior to the issuance of the certificate, a governmental inspection is carried out confirming compliance with building codes, zoning regulations, fire safety standards, environmental requirements and applicable permit requirements. Failure to secure such a certificate may expose parties to fines, prevent occupancy or trigger liability issues. Procedures and criteria for obtaining certificates vary by jurisdiction, project type and complexity. Owners and contractors commonly co-ordinate closely to ensure timely inspections, compliance documentation and resolution of deficiencies to facilitate smooth occupancy approval.

Pursuant to the provisions of Law 5144/2024 (Greek Law for VAT), VAT is imposed on the supply of goods, provided that this is carried out by means of a transaction made for consideration. The sale or purchase of real estate can qualify as supply of goods for the purposes of VAT, to the extent that it involves the transfer for consideration of the ownership of completed or unfinished buildings or parts thereof before the first occupation by a transferor who carries out, on a regular basis, the aforementioned transactions. The applicable VAT rate is equal to 24% of the taxable value and is payable by the purchaser. No real estate transfer tax is imposed on transactions on which VAT is imposed. By virtue of Article 70 of Law 5144/2024, the application of VAT to the sale of real estate properties under construction can be suspended until 31 December 2025, while any suspensions until 31 December 2024 already granted were extended until 31 December 2025. Transfer taxes shall apply to any transfer of real estate properties not subject to VAT due to such suspension.

In Greece, tax-efficient structures are commonly used to mitigate transfer, recordation and stamp duties on large real estate acquisitions. A key strategy is acquiring properties through share deals rather than asset deals, as transferring shares in a company holding real estate is generally exempt from VAT and real estate transfer tax. Additionally, acquisitions through REICs benefit from preferential tax treatment including exemption from the payment of transfer tax. Mergers, corporate restructurings and contributions of real estate into holding entities under specific tax provisions can also minimise transaction costs by qualifying as tax-neutral reorganisations. Proper structuring ensures compliance while optimising tax efficiency in high-value real estate transactions.

In Greece, businesses occupying commercial premises are subject to municipal taxes, primarily the Municipal Cleaning and Lighting Fee (TEL) and the Municipal Real Estate Tax (TAP), both collected via electricity bills. TEL is based on property size and usage, while TAP is a small percentage of the property’s objective value. Exemptions apply to public buildings, religious institutions and non-profit organisations. Additionally, businesses in special economic zones or involved in public interest activities may benefit from reduced rates or exemptions. Municipalities set rates independently, so tax burdens may vary by location. Proper classification of premises helps optimise tax liabilities.

In Greece, foreign investors are subject to withholding tax on dividends (5%) and interest (15%), subject to double taxation avoidance treaties. Rental income is taxed at progressive rates for individuals 15% (for annual rental income of up to EUR12,000), 35% (for the part of annual rental income exceeding EUR12,000 and up to EUR35,000) and 45% (for the part of annual rental income exceeding EUR35,000), while corporate income tax of 22% applies to the taxable income of any real estate entity. Capital gains tax on real estate disposals is currently suspended for individuals, but corporate income tax of 22% applies on gains from the disposition of real estate properties by companies.

By virtue of Article 24 of Law 4172/2013 (Greek Income Tax Code), the acquisition cost of real estate property, excluding the acquisition cost for the plot of land on which it has been erected, is deductible from the taxable income of the entity at an annual rate of 4%.