Commercial Leases (B2B) in Greece: Law 4242/2014

For decades, commercial leasing (shops, offices) in Greece was a "fortress" of tenant protection through the (old) P.D. 34/1995, which locked properties for 12 whole years. However, the legislation was radically overturned in 2014.

Today, the market is much freer and more flexible. Law 4242/2014 literally divided commercial leases into two eras: the "Old" (pre-2014) and the "New" (after February 28, 2014).

Disclaimer: This guide concerns the "New Leases" (those concluded today). Owners who still have tenants with contracts prior to February 2014 fall under the regime of old contracts (12-year term). Updated: March 2026.

1. The Big Change: Duration of 3 Years (Instead of 12)

The most important element that an investor or owner of commercial property needs to know today is that the minimum legal duration for a new commercial lease is three (3) years.

• The Rule: Even if the owner and the entrepreneur agree and sign a contract for "1 Year", the law nullifies it regarding duration and makes it a 3-year term.
• Freedom restored: Unlike the past (which lasted 12 years without the possibility of increasing the yield for the investor), today at 3 years the contract permanently expires. If the tenant wants to stay, the landlord can freely negotiate an entirely new rent, adjusted to current commercial values, or simply request eviction.

2. Abolition of "Intangible Commercial Value" Compensation

In the past, if the landlord evicted the businessman after 12 years, the law forced them to pay "goodwill compensation" (up to 24 rents), because the tenant claimed to have "built clientele" at the location.

• What applies today: This "penalty" on the landlord has been completely abolished for new contracts. The Landlord claims their property at 3 years (or at the end of the contract if e.g. a 5-year term was agreed) without owing a single euro to the merchant as compensation.

3. How to "Break" the Contract? (Termination)

Stability is the keyword in Greek B2B. Neither the landlord nor the company can simply "walk away" in the 2nd year of the 3-year term, unless an explicit clause is provided in the agreement.

• The famous "Termination of Regret" by the company (the tenant's right to leave whenever they want with notice) was abolished for new leases (unless otherwise agreed in writing). If the cafeteria isn't doing well the 1st year and wants to close, legally it must pay the landlord until the three-year term expires. (Judicially this is judged strictly in favor of the landlord).
• When the 3-year term (or the agreed duration) passes and the lease becomes an "Indefinite Term", then it is terminated with a simple written notice (extrajudicial document).

4. Stamp Duty, Taxes, and Declarations (TAXISnet)

At the bureaucratic level, commercial properties are subject to heavier transaction taxation (on the rent), as the payment of a 3.6% Stamp Duty (or digital transaction fee based on 2024 laws) is required, which is often passed onto the tenant in the contract, or VAT is charged if the landlord has opted for the respective regime. The electronic declaration in TAXISnet within a month (and of the EPC) is equally absolutely mandatory.

Landager: Unleash your Commercial Yield

The complexity of B2B leases in Greece, especially in contracts signed between 2013, 2014, and 2023, creates a chaotic mix of "Old" and "New" Regimes. Which tenant is entitled to a guarantee? Who can give notice of departure in 3 months? The Landager platform codifies all portfolios. Our algorithms, reading the "Effective Date" of each business, lock in the legal framework (Law 4242/14 or PD 34/95) and give your legal department 100% secure alerts on when you can make a legal contract termination to increase the building's Yield, without fear of lawsuits.

Explore more about commercial leases in Greece:

• Guarantees in B2B Leases (Deposit)
• Eviction and Order of Return of Professionals
• Taxes, TAXISnet and Stamp Duty
• Rent Increases (CPI in Commercial)
• B2B Lease Requirements
• Maintenance and Equipment Commercial
• Delays (B2B Late Fees/EU Directive)