Rent Increase: Inflation (CPI/ELSTAT) and Limits

In Greece, the increase (adjustment) of the rent for a residence is primarily governed by the freedom of contract between the landlord and the tenant. However, if the parties do not foresee a specific mechanism in the agreement, the law intervenes with a strict rule (a percentage of inflation) to protect the tenant from unreasonable increases.

Disclaimer: These rules apply to primary residences. Increase percentages must be strictly applied based on the official data of ELSTAT (Hellenic Statistical Authority). Last updated March 2026.

1. Free Agreement (The Basic Rule)

The initial rent is freely determined between the two parties when the contract is signed. Similarly, the annual (or biennial) increase is mainly determined by what is written in the Lease Agreement (which is declared in TAXISnet).

Common clauses (Adjustment Clauses):

• Percentage Increase: "The rent will increase by 3% annually". (Perfectly legal and binding).
• Adjustment based on Inflation (CPI): "Annual increase equal to the increase of the Consumer Price Index of the previous 12 months, increased by 1-2 points".
• Fixed Rent: The agreement that the rent will not change throughout the locked mandatory 3-year period is also perfectly legal and often the most "safe" bait for good tenants.

2. When the Contract is Silent (Legal Adjustment)

But what happens if only the amount was filled in the electronic lease and there is no mention/condition (clause) on how it will be increased in the second or third year of the lease?

Here the State and the law intervene:

• If no increase clause has been agreed upon, the rent CANNOT be freely increased at the landlord's discretion!
• The rent can be increased ONLY according to 75% of the change in the Consumer Price Index (CPI) of ELSTAT for the previous 12 months.

Example: If the rent is €1,000 and last year's inflation according to ELSTAT closed at 4%. 75% of 4% is 3%. Therefore, the landlord can legally (without prior agreement) demand from the 2nd year an increase of ONLY €30, shaping the new rent at €1,030. If they demand €1,200, the tenant is entitled to ignore them and pay €1,030!

3. Notice and Activation of the Increase

Even when the increase is foreseen in the contract (e.g., "Every January 1st adjustment based on CPI"), a written notice from the landlord is often required. If the landlord forgets to inform the tenant (e.g., because they forgot to check the ELSTAT numbers), they may lose the right to the increase for that month until they notify them (without retroactive effect, depending on jurisprudence).

4. After the End of the Three-Year Term

Once the mandatory 3-year period of the law passes, the lease in Greece is considered indefinite or "tacitly renewed", unless a new contract is signed (e.g., another 3-year term). At this point, if there is no new agreement, the limit of 75% of the CPI still applies, however, the landlord at this stage acquires their heaviest weapon: The power to terminate the contract with timely notice, essentially forcing the tenant into negotiating a new, higher (current) market rent.

Automate CPI with Landager

Why manually calculate the ELSTAT percentages with a calculator every month? Landager is integrated with the data of the Hellenic Statistical Authority. Our system detects which contracts are completing a year, automates the calculation of the legal 75% (or the % you wrote in your own contract), and sends on time a written Digital Adjustment Notice to the tenant's Email/Account! No lost increases, without the building manager breaking a sweat!

Back to Residential Tenancy (Overview).