Commercial and Professional Leases under Article 13 of Law 4242/2014 (Official Government Gazette A’ 50/28.02.2014)
Duration:
The duration of commercial leases is primarily determined by the mutual agreement of the contracting parties. If the agreed lease term exceeds three (3) years, that term binds both parties. However, if the agreed term is shorter than three years, or if no specific duration is established (resulting in an open-ended lease), a minimum statutory term of three (3) years applies, which is mandatory for both parties.
In practice, parties have the flexibility to negotiate different binding durations according to their intentions and needs. Nonetheless, the tenant must remain committed for at least the three-year minimum. It is common for tenants planning significant business investments to seek long-term leases (e.g., 9 years) for tax deduction purposes or to access funding from NSRF programs. At the same time, they may request a binding commitment only for the initial three years. This approach allows them to terminate the lease if the business does not perform well.
Thus, in leases involving considerable business interests, it is both common and valid to agree on a long contractual duration that favors the tenant while maintaining a minimum obligation to stay for three years.
Termination – Notice of Termination:
New leases can be terminated through a written agreement made after the original lease contract, with the date certified. Either the landlord or tenant may terminate the lease after the contractual term (or the minimum statutory three years if the agreed term is shorter) by providing written notice. The lease will terminate three (3) months after this notification, with no compensation owed to either party.
Other Terms:
All other aspects of new leases are governed by the general provisions of the Greek Civil Code, along with the specific terms included in the lease contract. The previous protective provisions under Presidential Decree 34/1995—such as those concerning minimum duration, owner occupation, reconstruction, and compensation for loss of commercial goodwill—do not apply to new leases.
