Security Deposits in Greece: Rules and Limits

When entering into a residential lease agreement in Greece, it is universal practice (and a customary rule) for the tenant to pay the landlord an amount as a "Security Deposit" (Εγγύηση), usually simultaneously with the payment of the first month's rent.

Disclaimer: The Civil Code does not strictly regulate the "limit" of the deposit with a specific article; instead, it is left to the freedom of contract. However, court jurisprudence (Supreme Court/Areios Pagos) has set a strict legal framework for its return. Updated March 2026.

1. Amount of the Deposit (Market Standard)

Unlike other EU countries (where law prohibits deposits exceeding 2 or 3 months), in Greece, there is no explicit law capping the deposit for residential properties.

• Market Reality: The established custom is the payment of one (1) or two (2) monthly rents as a security deposit.
• If a property is luxuriously furnished, the landlord can legally request a higher deposit (e.g., 3 months), provided the tenant agrees by signing the contract.

2. The Purpose of the Deposit

Courts have clarified that the amount of the deposit is not an advance payment of rent (meaning it does not cover the last two months of stay, although this is often an informal, illegal practice agreed upon at the end). The legal purpose of the paid amount is to secure the landlord against:

1. Unpaid rents (if the tenant leaves behind debts).
2. Unpaid utility bills (Electricity/DEH, Water, Natural Gas) or communal building charges (Koinochrista) that burden the tenant.
3. Damages / Wear: Damage to the property itself, its installations, or furniture, which exceeds natural deterioration from normal use ("normal wear and tear").

3. The Obligation of Return (Cause for Disputes)

After the termination of the lease (usually after the mandatory three years) and the handover of the keys, the landlord is obliged to return the deposit without interest to the tenant.

If the Landlord wants to keep the deposit: They cannot simply refuse the return arbitrarily. They must be able to prove the damages. If the tenant disagrees and files a lawsuit, the burden of proof in court falls on the landlord. The landlord must provide repair invoices from plumbers/painters and photographs proving beyond a reasonable doubt that the damage was the tenant's fault and not a matter of age ("normal wear and tear").

• The Myth of "I'm not paying the last 2 months": Many tenants in Greece simply stop paying rent for the last months (offsetting the deposit), fearing the landlord won't return it. This is legally prohibited. The landlord could (theoretically) start eviction proceedings for those months, and if they discover damages afterward, they no longer have a deposit "cushion."

4. The Lack of an Escrow Account

A major drawback of the Greek market: The deposit is paid directly into the landlord's personal bank account, mixing with their personal revenue. Greece does not have a "Locked Escrow Account" system (like a Tenant Registration Scheme in Scotland or a Deposit Account in Norway). The amount is simply written in the "Deposit" field during the electronic submission on TAXISnet.

Transparent Fund Management via Landager

Mixing deposit money with the manager's current working capital causes accounting panic when 15 tenants leave simultaneously. Landager organizes your property ledger: It records exactly what the locked capital (Deposit) is for each apartment on the Dashboard. Furthermore, it offers a digital Move-in/Move-out Inspection Protocol form, completed with mobile photos on key handover day. If a damage dispute arises 3 years later, you have undeniable photographic proof of the "Before" saved in the cloud, fully legitimizing the lawful withholding of the deposit in any Greek Court. With Landager, your capital is shielded.

Back to Residential Tenancy (Overview).