After the contractual lease period expires, the lease may continue either through a formal renewal or tacit acceptance, which can result in its conversion into an open-ended (indefinite-term) lease.
A lease extension refers to the continuation of the lease beyond the originally agreed term.
If the tenant continues to occupy the property with the landlord’s tolerance after the lease has expired, the lease may be deemed to have converted into an indefinite-term lease.
In such a case, either party may terminate the lease, provided they give adequate prior notice.
According to Greek law, commercial leases have a minimum legal duration of three (3) years, even if a shorter period is agreed in the original contract.
If the tenant remains in the property after the three-year term has ended and no new contract is signed, the lease automatically converts into an indefinite-term lease, continuing under the original terms.
Provide formal written notice (e.g. via extrajudicial declaration) if they do not wish to extend the lease.
Be aware that tacit tolerance may be considered acceptance of a new lease.
Declare any new lease or extension on the myAADE platform promptly.
Know that continuing to occupy the property with the landlord’s consent or tolerance gives them a legal basis for possession.
In the case of an indefinite-term lease, understand that the landlord may terminate the lease with notice (usually 1–3 months depending on the agreement or legal use).
Lease extension and the conversion to an indefinite-term lease can benefit both parties, as long as there is mutual understanding and proper procedural compliance. To avoid disputes, it is strongly advised to:
Sign a new written agreement in case of renewal,
Declare all changes for tax purposes, and
Respect legal notice periods for termination.
