Long-Term Rentals in Greece: Rules, Income, and Legal Requirements

The Lease Agreement

A long-term residential rental in Greece is formalised through a written lease agreement between the property owner (landlord) and the tenant.

A notarial deed is not required for standard residential leases, but a written contract is essential. The lease must also be registered electronically with the Greek tax authorities (AADE) through the Taxisnet platform. The tenant is required to accept the declaration online.

A properly drafted lease typically includes the identities of both parties, a description of the property, the rent amount, deposit terms, duration, and the obligations of landlord and tenant.

Clear terms from the beginning help avoid misunderstandings later.

Duration

Greek law provides a mandatory minimum duration of three years for residential leases used as a tenant’s primary home.

Even if the contract states a shorter term, the tenant may still have the legal right to remain for three years, provided they meet their obligations. Longer durations may also be agreed upon.

Rent and Payment Terms

The lease should clearly state the monthly rent, payment method (usually bank transfer), and the due date.

If annual rent adjustments are agreed — for example, a fixed percentage increase — this must be explicitly included in the contract. Rent increases cannot be imposed unilaterally unless the lease provides for them.

Security Deposit

Tenants usually pay a security deposit when signing the lease, typically equal to one or two months’ rent.

This deposit protects the landlord in cases of unpaid rent, damage beyond normal wear and tear, or outstanding obligations. At the end of the lease, it is returned provided the property is delivered in the agreed condition.

Maintenance and Expenses

In general, the landlord is responsible for major structural repairs, while the tenant covers everyday maintenance and minor issues resulting from normal use.

Utility bills and building common expenses are typically paid by the tenant, and electricity and water contracts are often transferred into the tenant’s name.

Termination

After the minimum three-year period, either party may terminate the lease according to the contract terms. Early termination within the protected period may require mutual agreement or specific legal grounds.

Legal Requirements for Long-Term Rentals in Greece

If you decide to rent your property long-term, you have basic tax and reporting obligations.

The landlord must declare the lease electronically and report rental income annually through the appropriate tax forms.

Required Supporting Documents

Common documents include:

- Energy Performance Certificate (EPC): Required for renting out property.

- Signed lease agreement.

- Electronic lease declaration to AADE: This must generally be submitted within 30 days of the lease start or any amendment.

- Tenant documentation: Usually, an ID/passport and a Greek tax number (AFM).

- Owner documentation: Proof of identity and ownership.

Foreign owners will also need a Greek AFM (Tax Identification Number), which is required for all property-related transactions.

Taxes on Rental Income

Rental income in Greece is taxed progressively:

- €0 – €12,000: 15% (fixed rate).

- €12,001 – €24,000: 25% (reduced from 35%).

- €24,001 – €35,000: 35%.

- Above €35,001: 45%.

(Intermediate brackets apply, depending on the tax year).

A practical advantage of co-ownership is that tax brackets apply per owner, which can reduce the overall burden for couples.

Property owners should also remember that ENFIA, Greece’s annual property tax, remains payable even while the home is rented out.

Tenant Protection in Greece

Greek rental law offers strong protection for tenants in long-term residential leases. The three-year minimum duration applies even if a shorter term is written in the contract.

Importantly, the sale of a rented property does not automatically terminate the lease. A new owner steps into the position of the previous landlord and must respect the tenant’s rights until the protected period ends.

For buyers, this makes it essential to understand the status of any existing tenancy before completing a purchase.

Termination of Lease

Both landlord and tenant may terminate the lease under certain circumstances, such as breach of contract, late payments, misuse of the property, or serious defects.

Once the three-year period ends, termination becomes easier, provided the legal and contractual requirements are met.

Additional Practical Steps

Before renting out your home, it is wise to:

- photograph the property’s condition before move-in.

- consider property insurance (recommended, though not mandatory).

- ensure payment terms and responsibilities are clearly written.

Small precautions like these can prevent larger disputes later and make the rental experience smoother for both parties.

Property Management Options in Greece

Owners can manage a long-term rental themselves or hire a professional property management company.

For foreign owners who are often away from Greece, professional management can be a convenient solution. Property managers can assist with tenant screening, inspections, repairs, and accounting.

While management comes with a commission, it can save time, reduce risks, and help maintain the property’s condition over the long term.

Conclusion

Long-term rentals can offer the perfect balance between stability and peace of mind. With predictable monthly income and less day-to-day involvement, they remain a reliable choice for owners who want their investment in Greece to work quietly in the background — while they simply enjoy the country itself.