Real Estate Law in Greece

Main laws that govern real estate

The right to ownership is recognised by the Hellenic Constitution (Article 17 thereof) and protected by the State. The principal law that governs real estate in Greece is the Hellenic Civil Code, Title 3 thereof in particular, under the title Property Law. Specific real estate matters are also dealt with in the Hellenic Code of Civil Procedure, Laws 2308/1995 and 2664/1998, which govern the procedure before the Cadastre Offices, as well as Law 3741/1929, which governs horizontal ownership. There are specific laws governing real estate owned by the Greek Orthodox Church and Greek Orthodox monasteries in Greece. In addition, Law 3986/2011 re-introduced “right over surface” on public estates, which had been abolished by the Civil Code in 1946.

Apart from the above, established case law of the Supreme Court and civil courts is generally considered as judicial precedent, and is frequently cited by lawyers and judges.

International laws relevant to real estate in Greece

Article 24 (1) of Law 1982/1990 stipulates certain provinces and islands as border regions, in which non-EU or a non-European Free Trade Association citizens/legal entities may not obtain property. Nonetheless, the above-mentioned prohibition may be lifted by application to the relevant regional Decentralised Administration Authority, stating the exact purpose of the real estate acquisition. Furthermore, in accordance with Article 28 paragraph 1 of Law 1982/1990, real estate property on private islands can be obtained following authorisation by the Ministry of Defence.

Real Estate Rights

Types of rights over land

The Hellenic Civil Code recognises a restricted number of types of rights over land (numerus clausus of rights in rem), which are stipulated in Article 973 thereof. These rights are:

• ownership (full ownership, bare ownership and usufruct);
• servitude; and
• mortgage and pre-notice of mortgage.

None of the above-mentioned rights is purely contractual between the parties.

Furthermore, pursuant to Article 18 paragraph 1 of Law 3986/2011, a person or a legal entity may construct a building over a plot of land owned by the State and exercise on this building similar rights as those provided by the right of full ownership, without actually owning the plot of land. This right is recognised as “right over surface”, amounting to the right of ownership between private parties and is of limited duration.

System of Registration

Rights in land that are mandatorily registered

In Greece, all land is required to be registered at the competent Land Registry or Cadastre Office. Registration of the title deed, as provided for by the Hellenic Civil Code, is compulsory for the establishment, abolishment or transfer of rights in rem over land. In particular, notarial purchase agreements, donations inter vivos, donatios causa mortis, notarial parental donations, inheritance acceptance deeds, surface rights, court decisions that pronounce right in rem, rural expropriation decisions, implementation acts of a town plan, etc, are mandatorily registered at the competent Land Registry or Cadastre Office.

Therefore, ownership of land is based strictly upon the registration of the respective title deed with the competent Land Registry or Cadastre Office, depending on whichever operates in the area where a plot of land is located.

Furthermore, the earlier of two registrations will always rank prior to the subsequent one (first-come, first-served principle).

Rights in land that are not required to be registered

Registration of contractual rights, such as lease agreements, is not required by Greek law. However, for long-term lease agreements with a minimum durations of nine years, the parties may sign a notarial contract, which is subject to registration at the competent Land Registry or Cadastre Office, to ensure the validity of the agreement and enhance protection vis-à-vis a new owner if the land were to be transferred.

Land Registries that operate in Greece

There are several Land Registries or Cadastre Offices in every region. Upon completion of the cadastral survey of all regions in Greece, the system of “Operative Cadastre” will replace the Land Registries. Despite the large number of Land Registries and Cadastre Offices in Greece, there rules and requirements do not differ between them.

Proof of ownership of registered real estate

Certificates of ownership are issued by the competent Land Registry or Cadastre Office. Registration of real estate deeds is also proven by a certified copy of the title deed by the competent Land Registry or Cadastre Office. Besides these, a lawyer has the competency to certify ownership in the context of due diligence in the Land Registries. This attestation by the lawyer has the status of a certificate.

Electronic registration of ownership rights

Electronic completion of transactions relating to registered real estate has recently been made possible to the Cadastre Offices, but not the Land Registries of each region yet. This development was expedited due to COVID-19, resulting in Cadastre Offices providing both digital access for the issuance of certificates of ownership, and for the registration of titles and deeds. Nonetheless, the electronic completion of transactions is not yet applicable to all Cadastre Offices.

It should also be noted in this context that, since 2018, all public auctions are conducted online.

The documents needed for the registration of an ownership right are the application for the registration, a certified copy of the notarial title deed (also accepted as digitally issued or certified), a certified summary of the notarial title deed (both obtained by the notary) and the tax declaration. If the registration takes place at a Cadastre Office, a cadastral diagram extract must also be provided.

Restrictions on public access to the Land Registry

All public books in the Land Registries and the Cadastre Offices are accessible for due diligence by lawyers and other professionals (notary public, court bailiffs and civil engineers). Moreover, the Land Registries and the Cadastre Offices are obliged to provide certified copies of the registered title deeds and certificates of registrations to all applicants. After the digitalisation of the Cadastre Office system, individuals have restricted electronic access to the registry, using their digital tax credentials, albeit only for property registered as belonging to them. Only professionals registered with the digital Cadastre Office system may obtain information on any registered property other than their own, such as lawyers and notary publics.

Real Estate Market

Involved parties

The parties involved in a real estate transaction, in addition to the buyer and seller and the buyer’s finance provider, are as follows:

• The real estate agent, who introduces the interested parties.
• The lawyers, who assist both the seller and the buyer in the due diligence process, the issuing of the documentation needed for the signing of the title deed and the drafting of the title deed.
• The civil engineer, who provides the seller with energy efficiency certification, as well as certification that the property is free from unauthorised constructions and/or usages.
• The competent tax office, where the buyer pays the transfer tax and is provided with the tax declaration.
• The notary, who executes the notarial title deed and checks the validity of the documentation compiled.
• The competent Land Registry or Cadastre Office, where the registration of the notarial title deed takes place for the establishment of the transaction.

Taxation

Transfer tax

Under Greek law, the transfer of real estate is subject to a transfer tax at a rate of 3.09%, calculated based upon the value of land, taking into consideration the highest value between the fair market value and the objective tax value.

The transfer tax is paid just before the buyer signing the notarial title deed, which is then provided with the tax declaration.

However, for certain categories of natural persons, the law provides a tax exemption, under the condition that the property will be strictly used as a first residence.

VAT

Transfer of real estate, taking place for the first time after its construction, is subject to VAT of 24% upon the price of the sale, if the building permit has been issued from 2006 onwards. Application of VAT, however, has been suspended until 31 December 2024. As things stand, from 2025 the government has the option to reduce VAT on real estate from 24% to 13% and even zero VAT from 2025. Due to the suspension of VAT, the issuance of new private building permits has increased, because the suspension is a very important incentive to the construction industry and investors wishing to invest in the Greek real estate market.

Other taxes

A tax on capital gains is imposed on the sale of property that is being sold within five years from its acquisition. The tax is 15% of the gain produced by the sale (difference between the sale price and acquisition price). Application of this tax has, however, been suspended by law until 31 December 2024.

Further tax issues

Before the completion of the transfer, it is advisable for the buyer to be informed of the amount of the property tax that is paid annually for the real estate.

Leases of Business Premises

Main laws that regulate leases of business premises

The main laws regulating leases of business premises in Greece are the Hellenic Civil Code and Presidential Decree 34/1995, as amended by Laws 3853/2010 and 4242/2014. Relevant legislation also includes Laws 4013/2011 (Article 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 activities);
• 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 accommodate 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 inflation-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 EUR12,000. Where the landlord is a legal person, lease income is treated as income from a business operation and the related expenses are tax deductible, provided they have been included in the company’s commercial books. Unless otherwise agreed, tenants are burdened with stamp duty amounting to 3.6% of the monthly lease.

“Green obligations” commonly found in leases

All leases, whether residential or business, require a Building Energy Performance Certificate in order to be lawfully concluded under Law 4122/2013. The serial number of the Certificate must be electronically filed with the tax office, along with the other lease details, enabling the tax platform to automatically verify its authenticity and validity.

Trends regarding working spaces

In the last few years, along with the “sprouting” of Airbnb short-term residential leases, there has been an increase in shared short-term working spaces, mainly office buildings, equipped with standard or more advanced amenities. On the other hand, shared residential spaces with shared facilities, apart from short-term leases, are not common.

Leases of Residential Premises

Main laws that regulate leases of residential premises

The main laws governing residential leases are the Hellenic Civil Code and Law 1703/1987, as amended by Law 2235/1984. There is no difference in the law applicable to cases of multiple occupiers under the same lease agreement.

Typical provisions for a lease of residential premises

Length of term

Residential leases have a three-year minimum term, even when the lease agreement stipulates a shorter term. The parties may, however, agree on a term exceeding the minimum.

Rent increases/controls

The lease agreement normally lays down the terms of any annual rent increase, typically inflation-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 the regional committees for the settlement and readjustment of rent.

Tenant’s rights to remain in the premises at the end of term

The tenant is obliged to give up the leased property at the end of the term, without further notice. If the tenant remains in the premises after expiry, continuing to pay the lease and the landlord accepts such payment, the lease is deemed implicitly renewed for an indefinite length of time and can be terminated by either party or by mutual agreement.

Tenant’s contributions to property costs (eg, insurance and repair)

The tenant is burdened with utility costs (electricity, water supply, etc). Insurance is not compulsory for either landlord or tenant. Repair of damages due to typical or agreed usage burdens the tenant. All other damages burden the landlord. The lease agreement may stipulate otherwise.

Termination of a residential lease

The landlord may terminate a residential lease due to non-compliance with the terms of the tenancy agreement on the part of the tenant (eg, non-payment). There are two main options for termination: (i) by lawsuit terminating the lease and seeking eviction, and (ii) by extrajudicial notice demanding compliance. In the event of non-compliance, after a 30-day lapse period, a request for an eviction order may be filed. In both cases, the execution of the decision or order will be performed by a bailiff.

Public Law Permits and Obligations

Main laws governing zoning/permitting and related matters

The main laws governing zoning/permitting and related matters are:

• Law 4067/2012 – New Construction Law;
• Law 1337/1983 – Expansion of Urban Development Plans, Residential Development and Other Provisions;
• Law 4495/2017 – Audit and Protection of Built Environment and Other Provisions;
• Law 2508/1997 – Sustainable Urban Development;
• Law 2742/1999 – Spatial Planning, Sustainable Development and Other Provisions;
• Law 2971/2001 – Shoreline and Coastline Protection and Other Provisions;
• Law 4819/2021 – Integrated Framework for Managing Waste (including from construction);
• Law 4759/2020 – Modernisation of Land Use and Planning Legislation;
• Law 4685/2020 – Modernisation of Environmental Legislation;
• Law 4447/2016 – Spatial Planning/Sustainable Development;
• Law 4014/2011 – Environmental Licensing of Projects; and
• Law 4030/2011 – Building Permits.

The bodies which control land/building use and/or occupation and environmental regulation are the City Planning Service of each municipality, the Forest Registries and several Departments of the Ministry of Environment and Energy. Buyers are advised to consult a civil engineer on matters concerning the use of real estate and environmental issues.

In addition to the above, Law 3028/2002 provides for the protection of antiquities and cultural heritage in general. Protection is focused on the preservation of historical memory for the sake of current and future generations, and on the improvement of the cultural environment. In such cases, several limitations regarding the change of use, renovation and development of a building may be imposed.

Climate Change

Regulatory measures for reducing carbon dioxide emissions

Following a revision of the EU Emissions Trading System (ETS) Directive in 2009, EU ETS operations were, in 2012, centralised in a single EU Registry operated by the European Commission. The Union Registry covers all countries participating in the EU ETS. The Union Registry is an online database that holds accounts for stationary installations (transferred from the National Registries used before 2012) and for aircraft operators (included in the EU ETS since January 2012). The Greek Greenhouse Gas Registry is part of the Union Registry and is managed by the Ministry of Environment and Energy.

Further regulatory measures

The Ministry of Environment and Energy has been running, since 2018, a project known as  Εξοικονομώ Κατ’ Οίκον (Saving At Home), which aims to motivate individuals to renovate their homes, in order to make them more sustainable. The process of the renovation is co-funded by the EU. An extension of the project to include businesses has been announced and is expected to be put into force soon.