A business or commercial lease is defined as the granting of the right to use and occupy a property by the owner to the lessee, for the purpose of the latter carrying out a business or commercial activity therein.
Indicative examples of business/commercial leases:
Retail or wholesale store, food and beverage stores
Hotel or licensed tourist accommodation
Medical practices, dental clinics, law firms, accounting firms, civil engineering offices
Private educational institution, nursery
Hospital, nursing home, etc.
Legal framework for commercial leases after 2014:
Pursuant to Article 13 of Law 4242/2014, amendments were introduced to the commercial leases regime, which were previously regulated by Presidential Decree 34/1995. As a result, commercial leases are now classified into two categories:
Leases concluded prior to 28 February 2014
Leases concluded after 28 February 2014
Key Points of New Commercial Leases:
Lease Term: The duration of the lease is freely determined by the contracting parties. In the absence of an agreed term, a mandatory minimum lease duration of three (3) years applies by law.
Rent Amount: The rent is freely agreed upon by the parties and must be paid exclusively via bank transfer.
Rent Adjustment: According to Law 5079/2023 (Article 57, par. 5), a rent increase cap of 3% applies to small and medium-sized properties for the year 2025 (there are exceptions).
Stamp Duty / Digital Transaction Fee: A levy amounting to 3.6% of the agreed rent applies.
Termination or Cancellation of the Lease: Termination must be effected in writing and the lease is terminated three (3) months after notification of the cancellation, without any compensation by either contracting party.
Considering that business/commercial leases are essentially governed and shaped by the principle of contractual freedom, as reflected in the written lease agreement executed between the parties, appropriate legal support is essential at the stage preceding the conclusion and signing of a commercial lease agreement. The involvement of a specialized attorney is strongly recommended in order to safeguard your interests.
For further information, please contact our office by telephone at +30 210 3319753 or by email at info@georgallis-law.com, in order our experienced associates guide you through the negotiation of terms of a commercial lease and the drafting of the lease agreement.
A business or commercial lease is defined as the granting of the right to use and occupy a property by the owner to the lessee, for the purpose of the latter carrying out a business or commercial activity therein.
Indicative examples of business/commercial leases:
Legal framework for commercial leases after 2014:
Pursuant to Article 13 of Law 4242/2014, amendments were introduced to the commercial leases regime, which were previously regulated by Presidential Decree 34/1995. As a result, commercial leases are now classified into two categories:
Key Points of New Commercial Leases:
Considering that business/commercial leases are essentially governed and shaped by the principle of contractual freedom, as reflected in the written lease agreement executed between the parties, appropriate legal support is essential at the stage preceding the conclusion and signing of a commercial lease agreement. The involvement of a specialized attorney is strongly recommended in order to safeguard your interests.
For further information, please contact our office by telephone at +30 210 3319753 or by email at info@georgallis-law.com, in order our experienced associates guide you through the negotiation of terms of a commercial lease and the drafting of the lease agreement.