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Rent out a property in Greece

If you bought a property in Greece, but you do not intend living there all year round, renting out your property can bring you good income.

Purchasing property in Greece has become a modern trend in Europe. The money you invest into a house purchase will be returned to you quite soon, in the form of a rent. Our company will help you find a reliable tenant, draw and sign the rent agreement, transfer the rent into your bank account and we will generally keep an eye on your property for you.  

Summer season on Chalkidhiki Peninsula as well as in other parts of Greece starts in April and lasts till October. Many foreigners prefer to rent a house for the whole year, not just for a couple of summer months. An average rent depends on a lot of factors such as the type of property, rent term, season, distance to the sea. For example, an average rent of a two-storey villa with a garden which is located not too far from the seafront will amount to €10.000 per year, or €150 per day, in case of short term rent. If you want to rent an apartment on the seafront in summer season, it will cost you some €40-55 per day.

Real estate experts say that property prices in Greece are quite stable now. And it’s unlikely that the prices will ever drop down: the country stays very attractive among numerous tourists and capital investors.

GENERAL INSTRUCTIONS

FOR  LANDLORDS AND TENANTS

1.     RENT OF RESIDENTIAL PROPERTY

- The minimum duration of rent for residential purposes is 3 years and must be agreed in writing.

In case of rent for residential purposes for families, it is desirable to specify the name of spouse.

In case of rental for residential purposes as an accommodation for students, it is  recommended, that the agreement is signed by their parents or the parents must guarantee the payment of rent and other expenses.

Even if a written agreement is agreed for a shorter period, the owner and the tenant are bound for at least for three years.

If the owner and the tenant specify in the agreement a shorter term (for example, 8 months, 1 year, etc.) and upon the expiration of the agreed period the tenant hand overs the property, the owner receives the keys without any problems. The tenant should take into consideration the obtaining of a written statement of acceptance of the property  by the owner and that he has no claims on future rent.

This mandatory period may be changed only by virtue of a new notarized agreement, which can be done only upon the expiration of 6 months from the commencement of the rent.

At the expiration of three years, the owner may request his/her property at any time and the tenant is obliged to hand over it.

- During the rent period the owner has no right to demand the property for personal residence.

Rental payments can be determined by the amount agreed by the parties. It can also be adjusted according to the agreement of the parties. It is recommended to avoid adjustments to the high proportion, since the difficulty of compliance, that will cause the problems during the rent.

Do not indicate the amount less than agreed. In addition to the tax offense, it's mostly detrimental to the owner, as if in case he/she would have to demand payment of rent by a court order, he/she will not be able to require a different amount than specified in the rent agreement. In addition, despite of an oral agreement, the tenant may pay only specified in the agreement rent.

- The income derived from the rent is subject to taxation

As for the State Electrical Power Provider Corporation (ΔΕΗ) and Water Supply Corporation, it is preferable that the tenant enters into a contract with these services personally. Thus, in the case of the State Electricity Corporation (ΔΕΗ), the owner will never be charged for tenant’s debts. In the case of Water Supply Corporation, it works otherwise, it is desirable that the owner checks the tenant’s bill payments. Of course, it should be taken into consideration that this can be covered using the deposit amount made by the tenant at the beginning of the rent. (See below).

Upon signing of the contract, the amount of one or two monthly rental payments should always be paid in the form of guarantee amount. The guarantee amount should never be counted against the rent payable, since the purpose of its retention is to cover the other bills and small damages caused to the property. The guarantee amount is returned without the payment of interest as soon as it is confirmed that the tenant has no debts (shared expenses, electricity, water, gas), and the property was not damaged.

In the case of the property without existence of any visible problems and damages it is more correct to mention this in the contract. Also, in the case of properties with existing problems and damages, this should be described in the contract, so that upon the expiry of the contract the tenant will not be charged for this.

- The rent payment payable by the tenant, as well as the bills (shared expenses, electricity, water, gas) may be required through judicial procedure. Also, the same time the eviction may be required. In such cases, it is necessary the assistance of a lawyer. This procedure is not a long lasting procedure. The costs will depend on the rental amount and on the total debt amount.

The outstanding rent amount, as well as one that is presumably not possible to receive, may be declared to the Tax Office. Thus, the owner does not pay the tax, and the tenant will be forced at some point to pay, as these amounts acquire the status of public revenues.

2. Holiday home rent

(minimum area 40 m²)

- The agreement shall be done in writing.

-The minimum rental period is one (1) month

There is no requirement of special permit EOT of (Greek Tourism Organization)

- There is no requirement of initialization procedure in the Tax Office

- The rent agreement with the personal data and TIN of the tenant should be submitted electronically to the Tax Office. If the tenant is non -resident and rental period is up to three (3) months, then TIN is not mentioned, it should be declared only passport number and place of residence.

If the owner aims to rent the residential property for shorter period, it is necessary to effect initiation procedure at the Tax Office.

 3. FURNISHED APARTMENT RENT

    (MINIMUM AREA 80 SQ M)

- The agreement shall be done in writing.

-The minimum rental period is one (1) month and the maximum is three (3) months.

Weekly rent is allowed as well, but subject to the special permit from the EOT (Greek Tourism Organization).

There is no requirement of initialization procedure in the Tax Office.

The total rental period shouldn’t exceed three (3) months in the same year, for both rental cases, weekly or monthly.

In the case of holiday homes rent or in case of furnished apartments rent the renting of two properties of the same owner is prohibited.

Rental amounts are declared at the Tax Office and are subject to taxation.

 4. RENT OF PREMISES FOR PROFESSIONAL USE

The minimum duration of premises for professional use is 3 years and it should be agreed in writing.

Even if a written agreement is agreed for a shorter period, the owner and the tenant are bound for at least for three years. The contracting parties may terminate the rent by signing a new agreement which is confirmed by the documents which bear a certified date, i.e. the document issued by the public institutions certifying the authenticity of signatures.

Upon the expiration of 18 months, the owner is entitled to demand property for personal use, i.e for commercial use by him personally or his children, provided that they have carried out a commercial activity in the past for a minimum period of thirty (30) months.

Upon the expiration of one year, the tenant can ask to leave the property with a prior notice, made 3 months before the day on which he/she is leaving and should pay the regular rent before the day on which he/she is going to leave and to pay the penalty equal to one monthly rent.

Rental payments can be determined by the amount agreed by the parties. It can also be adjusted according to the agreement of the parties. It is recommended to avoid adjustments to the high proportion, since the difficulty of compliance, that will cause problems during the rent.

Do not indicate the amount less than agreed. In addition to the tax offense, it's mostly detrimental to the owner, as if in case he/she would have to demand payment of rent by a court order, he/she will not be able to require a different amount than specified in the rent agreement. In addition, despite of an oral agreement, the tenant may pay only specified in the agreement rent.

-The income derived from the rent is subject to taxation

As for the State Electrical Power Provider Corporation (ΔΕΗ) and Water Supply Corporation, it is preferable that the tenant enters into a contract with these services personally. Thus, in the case of the State Electricity Corporation (ΔΕΗ), the owner will never be charged for tenant’s debts. In the case of Water Supply Corporation, it works otherwise, it is desirable that the owner checks the tenant’s bill payments. Of course, it should be taken into consideration that this can be covered using the deposit amount made by the tenant at the beginning of the rent. (See below).

Upon signing of the contract, the amount of one or two monthly rental payments should always be paid in the form of guarantee amount. The guarantee amount should never be counted against the rent payable, since the purpose of its retention is to cover the other bills and small damages caused to the property. The guarantee amount is returned without the payment of interest as soon as it is confirmed that the tenant has no debts (shared expenses, electricity, water, gas), and the property was not damaged.

In the case of the property without existence of any visible problems and damages it is more correct to mention this in the contract. Also, in the case of properties with existing problems and damages, this should be described in the contract, so that upon the expiry of the contract the tenant will not be charged for this.

- The rent payment payable by the tenant, as well as the bills (shared expenses, electricity, water, gas) may be required through judicial procedure. Also, the same time the eviction may be required. In such cases, it is necessary the assistance of a lawyer. This procedure is not a long lasting procedure. The costs will depend on the rental amount and on the total debt amount.

The outstanding rent amount, as well as one that is presumably not possible to receive, may be declared to the Tax Office. Thus, the owner does not pay the tax, and the tenant will be forced at some point to pay, as these amounts acquire the status of public revenues.

The above instructions were drafted on7/4/2015 in accordance with the current legislation.