Security Deposits in Commercial Properties: What Applies

As with residential properties, in the field of Commercial (B2B) Leases in Greece, the "Deposit" is the main axis of securing the landlord. But because we are talking about companies (AS, EPE, IKE, OE) and professional spaces with high functional risk, the requirements are noticeably stricter compared to simple apartments.

Disclaimer: There is no legislative "ceiling" for deposits in shops. The freedom of contracts (Law 4242/2014 & Civil Code) dominates. Updated: March 2026.

1. Amount of the Commercial Deposit (Harsher Terms)

While in housing the norm is 1 or 2 rents, in the commercial sector the amount usually reflects the stronger risks (e.g., the operating expenses of an industrial space).

• The Market Rule: Owners of offices and shops consistently demand two (2) up to three (3) or more monthly rents (sometimes up to 6 months upfront for newly established businesses/Startups without history).
• Bank Letter of Guarantee: For medium and large properties (Supermarkets, large Corporate offices), the simple "cash deposit into the landlord's account" is abandoned. Instead, the contract requires a "Bank Letter of Guarantee", so that if the tenant-Company goes bankrupt, the landlord instantly collects its debts from the Bank without waiting for liquidation.

2. The Purpose and Operating Expenses

The deposit in a corporate property covers not only unpaid rents. It often serves a heavier purpose:

1. Delayed Medium/High Voltage Bills (DEH/Electricity): A small industry that leaves suddenly can leave "unpaid tabs" of thousands of euros in its operating electricity. If the electricity was in the landlord's name, the deposit is the only way to be saved.
2. Space-Planning Restoration (Shop Remodeling): If the company knocked down (with permission) internal walls to build showcases or Meeting rooms, contracts require "Restoration to original condition" (Article 599). The cost to tear down corporate signs and plasterboards burdens the tenant (B2B), and if they do not do it, the cost is retained entirely from the heavy deposit.

3. Withholding against Unpaid Taxes (Stamp Duty)

A unique peculiarity of Commercial Leases is the 3.6% Stamp Duty. Often in the contract, it is agreed that the Tenant-Company pays it. If the company pays net rent but leaves the Tax Office's stamp duty unpaid, the landlord (whom AADE will ultimately chase) has the legal right, when the lease expires, to withhold this tax debt from the Deposit money!

4. The Lack of an Escrow Account

Just as in residential, Greece does not offer a state tool for the safe custody of deposits. The money usually goes as an advance payment into a corporate/individual account of the owner and is tax-justified as a "deposited guarantee" in TAXISnet without further tracking, until expiration.

Build Corporate Credibility with Clean Accounting (Landager)

The worst-case scenario for a Corporate Real Estate fund in Greece is having to fight with 10 lawyers of a multinational to explain why it didn't return the €30,000 deposit after the termination of an 8-year contract. The Landager app connects the B2B construction protocols (Move-out Matrix) of the property directly with the Deposit amounts in the tenant's account. Even before the "Exit Date" is reached, the system scans the customer's debt ledger, detects if there were unpaid 3.6% stamp duties and automatically sends them a detailed clearance P&L ("You will be returned 22,000, 8,000 was kept based on Clause §4.1 on reconstruction"). No judicial dispute, only automated clearing with API documentation.

Back to Commercial Leases (Overview).