Commercial leases in Greece refer to tenancy agreements signed for the purpose of conducting business or professional activities within the leased property.
These leases are regulated under Presidential Decree No. 34/1995, and apply to various professional uses, including:
- Educational institutions and daycare centers
- Clinics and healthcare facilities
- Auxiliary premises to other properties
- Pharmacies and pharmaceutical warehouses
- Nursing homes
- Law offices, medical and dental practices, architectural or engineering firms
- Notary offices, bailiffs, veterinary clinics, accounting offices, land registry agents
- Recognized charities governed by Law 2039/1939
Legal Framework: Modernization of Lease Law
Commercial leases entered into on or after February 28, 2014, are governed by:
- Presidential Decree 34/1995, as amended by:
- Law 2749/1999
- Law 4242/2014
- Law 4257/2014
- Law 4264/2014
- Law 4335/2015
- Law 4373/2016
Additionally, general provisions of the Greek Civil Code apply.
Rights and Obligations of the Parties
Obligations of the Landlord:
- Must deliver the property in a suitable condition for the agreed use.
- Is responsible for necessary repairs and maintenance.
- May require a security deposit, refundable upon lease termination.
Obligations of the Tenant:
- Must pay rent on time and use the property only for the agreed purpose.
- Cannot change the use of the property (e.g., from business to residential).
- Is responsible for avoiding damage and paying utility and communal expenses.
⏳ Minimum Lease Duration (Law 4242/2014)
Law 4242/2014 introduced a mandatory minimum lease term of three (3) years, even if the parties agree to a shorter term or fail to specify a duration in the lease agreement.
✅ If a longer lease term is agreed, it remains valid.
🔁 Indefinite-term leases: If the tenant remains after the fixed term with the landlord’s silent consent, the lease continues indefinitely under Article 611 of the Greek Civil Code.
❌ Termination and Expiry of Lease
Commercial leases may terminate:
- Automatically: Upon the lapse of the agreed or statutory term.
- By notice: Either party may terminate the lease after the minimum or agreed term, with three (3) months’ notice, and no obligation for compensation. Rent must still be paid during this notice period.
Abolished Grounds for Termination
Law 4242/2014 abolished some previously valid termination reasons:
- Termination for personal use or reconstruction
- Termination due to bankruptcy of the tenant
- Special compensation of 24 months for termination after a 12-year lease
Note: Termination by public authorities for public service needs remains valid.
⚠ Early Termination for Good Cause
Early termination is allowed only for “serious cause”, which courts interpret strictly. Examples may include force majeure or persistent breach of contract terms.
Conclusion
Understanding the modern framework for commercial leases in Greece is essential for both landlords and tenants. Whether you’re signing a new lease or reviewing an existing one, seeking qualified legal guidance ensures your rights are protected, especially under the latest legal amendments.
Need expert legal support on commercial leases in Greece?
Contact us at www.prili-law.gr
