Greek leasing agreements are binding legal contracts that set out the terms and conditions of the tenancy agreement between the landlord and tenant. It defines the rights and duties of each party, as well as certain aspects of the relationship between them. Greek Law provides the basic principles of the lease agreements, while there are a number of laws which regulate specific types of leases, such as the business lease. Lease contracts should be drafted by Greek Lawyers in order to get the maximum protection for their client.

Greek business leases are rental agreements concerning properties that will be used by the tenant for the practice of his professional occupation. Presidential Decree 34/1995 and law 2741/1999 regulate Greek business leases, and offer security to many professions, as specifically foreseen by the law. Thus, Greek law provides to such lease agreements additional security.

The stipulation of the Greek business lease agreement is effected through the execution of a document by virtue of which the terms of the lease are agreed or even through an oral agreement between the parties. In cases of leases of Greek real estate properties, it is provided by law that the lease agreement should be executed under the form of a private agreement and then certified by any Greek Tax Authority.

The duration of the Greek business lease agreement is determined to 12 years. However, parties may agree to a shorter duration by executing another agreement of “specific date.”

Rents of Greek business leases as well as their readjustments may be freely agreed between the parties. In case that there is no agreement for the readjustment of the rent or in case that the agreed terms for its increase are invalid, the law in Greece provides for an increase to the rent in order for the rent to correspond to 6% of the annual inflation rates and is granted 2 years after the stipulation of the Greek business lease agreement.

Termination of Greek business leases, is effected for the specific reasons provided by the Presidential Decree 34/1995, mainly but not limited to:

a) termination of the lease for self home use of the property by the landlord and his family; Such termination may take place upon the expiration of the 12 year duration and in no case before the passing of three years from the beginning of the lease.

b) termination for building the leased property. Such termination can be effected after the expiration of the 12 years or after the passing of three years, from the beginning of the lease agreement. In order for this termination to be valid, copy of the building permit has to be served to the tenant.

c) termination for self business occupation;

d) termination for constructing primary residence.

e) lapse of the 12 year duration.

The termination can only be effected through the service of a written document to the tenant and comes into effect six months after the notification of his the termination to the tenant.

For the termination of the Greek business lease agreement for the above reasons, compensation is owed to the tenant for an amount equal to 12 - 30 monthly rents.

According to Greek Law on leases, for the termination of the Greek business lease upon passing of the 12 year duration, the landlord is obliged to pay as compensation to the tenant, amount equal to 24 monthly rents. Such compensation must be paid prior to the evacuation of the premises and its deliverance to the landlord.

The aforementioned compensation is not paid in the following cases: a) the tenant voluntarily evacuates the lease, b) the landlord files a lawsuit for the release of the lease within 9 months from the termination of the lease agreement. In case that such lawsuit is not filed, an extension of four months of the lease agreement is provided.

The right of terminating the Greek business lease is also given to the tenant, who may terminate the lease agreement two years after its beginning. In such a case, the tenant has to compensate the landlord by paying him an amount equal to 4 monthly rents.

All the above procedures for the protection of your property in Greece, can be accomplished through a limited Power of Lawyer to a specialized Greek Lawyer, like our Law Firm.

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