1.What is the Golden Visa scheme?

The Golden Visa scheme allows third-country nationals to obtain a residence permit in Greece for a period of five (5) years, with the possibility of renewal, provided that they make a qualifying investment in real estate located within Greek territory. In practice, the interested party proceeds with the purchase of the property and, subsequently, the details of the property to be transferred are submitted to the competent authorities in order for the residence permit to be approved, provided that the statutory requirements are met.

With regard to this specific residence permit (type B.5), it allows the third-country national to reside legally in Greece for a period of five years and to move freely within the Schengen Area (i.e. the countries that are parties to the relevant agreement, which include all Member States of the European Union). The interested party may also invite family members to obtain a residence permit in Greece; however, such permit will expire on the same date as the principal applicant’s residence permit.

Furthermore, the law allows a third-country national to obtain a residence permit in Greece even if they have inherited real estate property in Greece, provided that the objective value of the property meets the criteria set out below. The manner in which the property is inherited is irrelevant, as long as the inheritance has been accepted and the applicant exercises possession of the property. In such a case, there is no requirement to invest in the purchase of real estate in Greece.

2. What are the requirements to obtain such a residence permit?

In order to systematize the necessary requirements set by law, it is useful to briefly outline the procedure. Accordingly, the law requires that:

• The applicant is a third-country national (and not a citizen of a Member State of the European Union, in which case such a permit would be unnecessary).

• The applicant has entered Greece legally with any type of entry visa, or is legally residing in the country, even if their existing residence permit is of limited duration.

• The applicant has acquired full ownership/possession/holding of real estate property in Greece.

• The acquisition of the property may also occur through inheritance, as explained above.

• The real estate property must have a minimum value of EUR 800,000 for certain areas of the country.

• These areas are the Region of Attica, the Regional Unit of Thessaloniki, Mykonos, Thira (Santorini), and islands with a population exceeding three thousand one hundred (3,100) inhabitants according to the latest census.

• For the remaining areas of Greece not included in the above list, the minimum investment threshold is set at EUR 400,000.

• Alternatively, the applicant may enter into a long-term lease of a tourist accommodation, provided that the value of the accommodation meets the above investment thresholds, depending on its location.

• Upon completion of the transfer or lease of the property/accommodation, the relevant documentation is submitted to the Secretary of the Decentralized Administration, who will grant the residence permit if the statutory requirements are fulfilled.

• The applicant is not required to reside permanently in Greece in order for the residence permit to remain valid.

• After the expiration of five years from the issuance of the permit, the applicant may request its renewal, provided that the investment in real estate in Greece remains in effect.

3.Can the real estate investment be made through a company?

Greek legislation allows a third-country national to invest in real estate in Greece for the purpose of obtaining the corresponding residence permit through a legal entity/company. A key requirement is that the legal entity/company has its actual registered seat in Greece or in another Member State of the European Union. If the company is established anywhere within the EU, no issue arises, as all legal entities within the EU are treated equally by the Member States.

The law further requires that the applicant owns all of the shares (in the case of capital companies such as S.A., Ltd., or IKE) or all partnership interests (in the case of general partnerships, limited partnerships, or civil partnerships) of the legal entity that carries out the investment. Particular attention is required here, as not all EU Member States recognize the same types of companies; a company known in Greece as a general partnership may be subject to a completely different legal framework abroad.

The rationale behind the requirement for full ownership of the shares or partnership interests is clear. In the past, there were numerous cases in which subsidiary companies invested in real estate in Greece using funds originating from parent companies, enabling multiple third-country nationals to obtain residence permits through the Golden Visa scheme with very low individual investments. This category also included offshore companies, which led the Greek legislator to take measures to protect banking transactions from funds of questionable origin.

4.What if the property is a listed (preserved) building?

An applicant seeking to obtain a residence permit through the Golden Visa scheme is permitted to invest in a listed or renovation-required property located in Greece. More specifically, a third-country national may acquire ownership even of a part of a listed building (provided that horizontal or vertical ownership has been established), as well as a plot of land on which a building classified as preserved is located or which requires immediate reconstruction due to its age.

In such cases, the minimum acquisition value of the property for the purpose of obtaining the residence permit is set at EUR 250,000. However, due to the special nature of such properties, the applicant is limited to investing in only one property in Greece if they wish to obtain the residence permit. The same applies in cases of acquisition of an undivided ownership share; the minimum value of the undivided share must also be EUR 250,000.

In order to renew the residence permit after five years, the applicant must have carried out reconstruction, restoration, or repair works on the property classified as preserved. The applicant must demonstrate, by any lawful means, to the competent authority that the required works have been completed. To ensure compliance, the law prohibits the transfer of the property to a third party before the completion of all works deemed necessary for the reconstruction, preservation, or restoration of the property.

5.What applies if the principal use of the property changes after purchase?

The applicant has the discretion to change the principal use of the property (most commonly from storage or office use to residential use). In such cases, the law sets the investment threshold at EUR 250,000. However, the change of use of the main areas of the property must be completed no later than the time of issuance of the residence permit. After that point, a change of use is no longer permitted, in order to prevent abusive practices.

Following the same rationale, an applicant is permitted to purchase an industrial building, part of an industrial building, or a plot of land on which an industrial building is located, and to change the principal use of the property to residential use prior to obtaining the residence permit. A prerequisite for the validity of such a change of use is that no industrial activity has been carried out on the property for a period of five years prior to the date of transfer.

To facilitate this complex investment, the legislator allows even the seller to change the principal use of the property in advance, so that the process is completed and no doubts remain regarding the legal status of the property. It is understood that, in this type of investment as well, if the applicant chooses to acquire an undivided ownership share in an industrial property, the minimum value of such share must be EUR 250,000.

6.Are there now alternative ways to invest in order to obtain a residence permit?

Among the changes rumored to be introduced to the Golden Visa scheme is the possibility for a third-country national to invest in a Greek “start-up” company. Economists generally define this as a rapidly growing business offering an innovative product to the market, which contributes to the company’s rapid development and attracts potential shareholders to invest in covering or increasing the company’s share capital.

Given that today most start-ups are sold relatively quickly (precisely because the goods/services they provide are in high demand), the third-country national’s investment generally consists of covering the initial share capital of the company. It remains to be clarified what will happen if the company is later transferred, i.e., whether the original investment will still be considered sufficient.

At this point, it is crucial for the legislator to define what constitutes a start-up in Greece, as several definitions circulate, often leading some to label even regular cafés or restaurants as start-ups. The establishment of necessary criteria and specialization of the matter has already been addressed in executive laws issued last year, which will be analyzed in a subsequent text, as the regulations are extensive.

7.Can the residence permit obtained through the Golden Visa be renewed?

The main incentive provided to the applicant by law is the possibility to renew their residence permit in Greece once five years have passed from the initial issuance date. To have the renewal accepted, the applicant must submit a request to the Decentralized Administration, detailing the investment made in Greece, its amount, location, and whether it is still in effect.

Specifically, the applicant must submit a certificate from the notary who prepared the property transfer deeds or lease contracts, proving the parties involved, the method of payment, and whether the property was used to obtain a permanent residence permit. A copy of the applicant’s E9 form is also required.

As mentioned above, in the case of acquiring a preserved property, the applicant must also provide evidence of restoration or renovation works performed on the property to maintain its economic value. This is why such properties are offered for investment at a lower minimum value (EUR 250,000) compared to other central regions (EUR 800,000).

8.Is it permitted to rent properties acquired by third-country nationals?

Regarding property leasing, the law allows the applicant to rent the property only through long-term leases, subject to all relevant provisions described in detail in another text. For such leasing, a lease contract must be drawn up, and the applicant (or their representative) must be present in Greece to sign the private agreement.

Short-term rentals (such as Airbnb) are completely prohibited for properties acquired for the Golden Visa. If this law is violated, the applicant’s residence permit is automatically revoked, and a fine of EUR 50,000 is imposed on the applicant or the current property holder.

For properties that contain industrial buildings, the applicant is prohibited from establishing their business headquarters on these properties; the headquarters may be located elsewhere in Greece. Violations incur the same penalty as illegal short-term leasing, since such relocations often concealed short-term rentals in the past.

9.What happens if a third-country national sells the property they purchased?

To answer this, it is necessary to distinguish between different types of properties eligible under the Golden Visa scheme. For primary residence properties, the law allows resale to another third-country national. In this case, the original residence permit is revoked, and the new owner receives their own 5-year residence permit.

To prevent abusive practices, the law establishes the same consequences if the property is owned by a legal entity or company in which the applicant holds shares. If the applicant transfers the property through the company or leaves the company, they lose their residence permit, which is instead granted to the new shareholder.

For preserved properties, the law explicitly prohibits transfer, due to the special nature of the investment (necessary restoration works). Violation results in automatic revocation of the residence permit and an administrative fine of EUR 150,000 for both the owner and the holder of the property.

10.How is the payment for the property purchase proven?

To ensure transparency and facilitate transactions, the law allows payment by the buyer through a dual-signature bank cheque to the seller’s account in a Greek bank/credit institution. Alternatively, bank transfers can be made even between accounts in different countries.

Payments may also be made via electronic payment systems (POS) using the buyer’s credit/debit card, to a recipient account held with a payment service provider operating in Greece. Another way for payments to be done is by the buyer’s spouse or relatives up to the second degree, but identification of the payer is critical for the legality of the transaction.

Finally, the law requires that all identification details of the buyer, the seller’s account, the payment method used, and the personal information of the parties are included in the notarial deed of transfer to facilitate verification of the transaction’s legality.

Next to the client and his needs.

Athina Kontogianni-Lawyer

The above does not constitute legal advice, and no responsibility is assumed for it. For more information, please contact us.

1.Abolition of holographic testaments.

The most significant change anticipated in inheritance law is the abolition of holographic wills as a means for the testator to manage their estate after death. This change primarily stems from the law’s and Greek courts’ mistrust towards holographic wills, which are often forged by the deceased’s heirs, either to alter the distribution of assets or to regulate succession through a will, particularly if the deceased had not left a will.

Holographic wills will be replaced by public wills—those made in the presence of a notary and witnesses, which are already recognized in inheritance law. Additionally, there are provisions for the replacement of handwritten wills with so-called “digital wills.” Here, the notary will draft the will as dictated by the testator in a computer file, which will be stored in a database until it is required to be published by the court at the heirs’ request.

For this change, a transitional period could be necessary for holographic wills created before the new laws come into effect, as not all testators have easy access to a notary due to age or financial reasons. Thus, the idea of an interim solution before completely abolishing holographic wills is seen as a positive step to allow citizens time to adjust to this significant change.

2.Limitation on certain relatives’ inheritance rights.

Currently, inheritance law allows the deceased to name even parents/uncles as heirs. Provided that the inheritance allocated to the children and spouse meets the required legal portion, the testator can decide how to distribute the rest of their estate among other relatives. This provision reflects the care and affection a testator may wish to show to extended relatives beyond their immediate family.

With the new legislative changes, relatives over the age of 80 will no longer be eligible to inherit from the deceased. The law assumes that relatives of this age will not manage the inheritance effectively. Simply put, a testator who wants to draft a will early will not be able to name their parents as heirs if they are over 80 years old (which is not uncommon, especially given generational age differences today).

Regarding this specific change, it should be noted that if the testator names relatives under 80 years old as heirs, but those relatives are over 80 at the time of the testator’s death, they would need to return the inheritance to the remaining (younger) heirs. This restriction may lead to double inheritance taxes and possibly double transfer taxes (particularly if the inheritance includes real estate, as we discussed in a previous document).

3.Marriage no longer required for inheritance rights.

A fundamental principle of inheritance law has been that for a spouse to inherit from the other, a valid marriage or cohabitation agreement must exist. This rule has recently been extended to same-sex couples under the law. Additionally, a spouse may lose inheritance rights if the deceased had filed for divorce with justifiable grounds for dissolving the marriage.

The upcoming changes in inheritance law will remove these requirements. Marriage or a cohabitation agreement will no longer be necessary for a spouse to gain inheritance rights from the deceased. It has been stated that someone who had a relationship with the deceased for a certain period, without a formal marriage or agreement, will also be eligible to inherit.

This change may present practical challenges: the law will need to define the necessary duration of the relationship to be legally valid for inheritance rights. Proving such a relationship through witnesses in court is almost certain to lead to potential misuse (a topic we covered in another document last week regarding witness credibility under current law).

4.Inheritance rights may be subject to prescription(expiration).

The current regulation in inheritance law is as follows: an heir has a legal deadline of four months to renounce the inheritance. This deadline begins from the deceased’s death and from the moment the heir becomes aware of both the death and their designation as an heir. However, there is no legal deadline to accept the inheritance; this can be done at any time, provided it is not so delayed as to give other heirs the impression that this particular heir does not intend to exercise their inheritance rights.

Under the proposed changes, in addition to the deadline to renounce the inheritance, the heir will also have an additional statutory deadline within which they must accept the inheritance. If the heir does not exercise their inheritance right within this specified timeframe, it will expire, as explained in other documents discussing prescription laws in Greece.

This change has several advantages, as many heirs neglect to accept the inheritance, causing the inherited assets to fall into disuse and lose their economic value. In cases where an heir deliberately avoids accepting the inheritance to escape debts to creditors, the law already provides for such situations: each creditor can legally compel the heir to accept the inheritance and can record the heir’s acceptance themselves in the Land Registry/Cadastre (in cases of real estate, where inheritance acceptance must be recorded).

5.The path opens for inheritance contracts.

Inheritance contracts, which are currently explicitly prohibited by law, represent a written agreement between the testator and their heirs specifying precisely which assets each heir will receive from the deceased’s estate. This can eliminate the lengthy procedures of drafting and publishing wills, issuing certificates, and processing inheritance documents. Furthermore, heirs can avoid lengthy legal disputes over their portions, as these are predetermined, often with the heirs’ knowledge.

Among the changes to inheritance law is that inheritance contracts between the testator and their heirs will now be permitted. These contracts can follow the procedure described above, with legal details established to ensure validity. What is important is that an inheritance contract should not limit any heir’s share beyond what they are legally entitled to by the law of forced heirship.

If an heir’s share is unduly limited by the inheritance contract, it is possible that the contract could be invalidated to the extent that it affects an heir’s lawful portion. The primary reason inheritance contracts were previously forbidden was to prevent the testator from wasting assets, thus ensuring that there would be enough for the heirs’ lawful share and preventing the inheritance of the deceased’s assets by individuals without close familial ties. It remains to be seen how these objectives will be met in practice.

6.Even intellectual property rights can now be inherited.

The rule in inheritance succession is that all legal property relations of the deceased, which they held during their lifetime, can be inherited. This means that in addition to familiar assets (real estate, movable property, bonds, shares, etc.), heirs are entitled to receive other legal rights from the deceased, such as time accrued for adverse possession on another’s movable or immovable property, or participation in a lawsuit initiated in the name and for the benefit of the deceased.

However, up until now, the law imposed certain restrictions on the legal relations that heirs were entitled to inherit. Specifically, while heirs could inherit the trademark, reputation, and clientele of a business (if the deceased owned one), there were restrictions on intellectual property rights related to the authorship of books, etc. Similarly, restrictions applied to industrial property rights, such as patents, if the deceased held any inventions they had registered while alive.

The legislator now seeks to amend this restriction, particularly concerning intellectual property rights. This means that the deceased’s heirs will be able to inherit intellectual property rights related to book authorship, articles, scientific works, etc. Likewise, in cases where intellectual property rights were previously inheritable by heirs but with clear restrictions, it is said that under the new changes, all such restrictions on the inheritance of these assets will gradually be removed.

Our four proposals on the subject:

a.Expediting the testament publication process.

Currently, for heirs to accept an inheritance, the deceased’s will must first be published by the court and declared primary (if multiple wills exist). In practice, heirs often wait extended periods for these procedures to be completed by the courts, despite the recent implementation of a new judicial framework that has yet to speed things up.

As a result, heirs may be liable for a different inheritance tax if a legislative change occurs between the time the will is located and its publication, while valuable time is lost during which the inheritance remains unutilized. This process could be improved by reducing the time required for the will’s publication in court, with the cooperation of the heirs.

The transfer of responsibility for publishing wills to single-judge courts (following the abolition of Justice of the Peace courts) could expedite this process, as cases will no longer be distributed among various levels of jurisdiction. Digitization of wills by notaries, enabling faster access for the courts, may further reduce reliance on heirs who may have neglected to locate the will.

b.Recognizing the importance of the certificate of inheritance in transactions.

The certificate of inheritance holds considerable significance for society as it is now issued by a lawyer and serves as legal proof that the named individual is the lawful heir of the deceased. This document is particularly important when there is no will, and heirs own undivided shares in plots or real estate that they wish to transfer by any means.

However, a certificate of inheritance may contain errors or omissions and can be inaccurate, especially if a claimant submits false documents to the lawyer to obtain the certificate and thus unlawfully possess the inheritance without the knowledge of the rightful heirs. With the elimination of handwritten wills and the overall digitization of wills, there is a legislative aim to prevent the issuance of forged inheritance certificates.

The existing regulations regarding inheritance certificates are clear and beneficial. If an unlawful claimant uses a forged inheritance certificate to transact with a third party unaware of the fraud, the law protects this third party who was unaware they were dealing with a non-heir. We await to see how these provisions will align with upcoming changes in inheritance law (perhaps with inheritance certificates available in digital form in the future).

c.Making the institution of the trust more comprehensible in law.

Regarding the institution of the trust, which is widely used in the United Kingdom and other countries, the following should be noted: The law allows the testator to temporarily pass on the inheritance through a will to an heir, who, upon the occurrence of a certain event specified in the will, is then obliged to transfer the inheritance to the ‘final’ heir. The institution of the trust also serves transactional needs, as the last heir in line may not be able to receive the inheritance at the time of the testator’s death.

Additionally, the deceased may specify in their will that the final heir will receive the inheritance from the trustee after a certain period, which must be proven. This may also depend on the occurrence of an event, such as whether the final heir completes a university degree. For the trust to be valid, however, the final heir (or trust beneficiary) must be born or at least conceived at the time of the testator’s death, unless the testator specifies otherwise, in which case their wishes prevail.

Generally, the institution of the trust is well-understood in practice. However, there are certain specialized legal provisions, which, due to the difficulty in proving them, complicate matters in borderline cases. For example, the law provides that a trust beneficiary may also be a legal entity (such as a business or corporation), and under forthcoming changes, a legal entity will be able to inherit directly from the testator if expressly stated by the latter. Therefore, harmonization between these two legal provisions is needed, as they include several details requiring regulation.

d.Judicial liquidation of inheritances should align with modern needs.

The specific legal provision allowing heirs to discharge themselves from inheritance debts has been discussed in detail in another article. Judicial liquidation of inheritance functions similarly to enforced execution through auction of movable or immovable property: creditors of the estate file claims in the judicial liquidation, and if their claims are verified, they are entitled to financial satisfaction from the proceeds of the inheritance’s liquidation.

Problems arise in practice when other creditor collection mechanisms are simultaneously underway with the judicial liquidation of the inheritance. For instance, if the testator was declared bankrupt before death, an inventory and liquidation of their bankrupt estate would have begun to satisfy their creditors. Similarly, if the testator’s property was seized, auction procedures may have already started for liquidating the estate.

In our view, a clear distinction needs to be established by law among these three processes to prevent them from running in parallel, as the progression of one can render the others redundant. Furthermore, with the new possibility of inheriting intellectual property rights, as mentioned earlier, there must be clear legislative provisions on how these rights will be liquidated if the inheritance undergoes judicial liquidation and an auction is pursued.

Next to the client and his needs.

Athina Kontogianni-Lawyer

The above does not constitute legal advice, and no responsibility is assumed for it. For more information, please contact us.

1.What does the term mean?

The term “appeal” refers to a legal remedy by which a party requests a higher court to review their case from the beginning, based on an initial error that, as they claim, is present in the decision that was issued. This means that with the filing of the appeal, the case is retried fully and completely. If the party’s appeal is accepted by the court, then the court annuls the previously issued decision, and a new judicial decision will be issued.

To file an appeal against a decision, the party must have what is called a “legitimate interest,” meaning that they must have suffered a defeat or harm from the judicial decision—either their claim was dismissed or a claim against them was upheld. As explicitly provided by law, even if the party won the case, they are entitled to appeal the decision if the latter still harms them.

Finally, it must be possible to appeal against the specific judicial decision. This is because the law prohibits the right to appeal in certain categories of decisions (to expedite the resolution of less significant cases). Such prohibitions exist for decisions on provisional measures, which we discussed in another text, as well as for decisions issued in small claims cases where the monetary amounts sought do not exceed the threshold of 5,000 euros.

2.What is the deadline for filing an appeal today?

Since it is crucial for a party to know until when they are entitled to file a legal remedy, the law ensures that this point is clear. More specifically, it stipulates that the appeal deadline is 30 days from when the decision is served to the party wishing to file the appeal. The date of service is certain, as it is easily derived from the proof of service accompanying the decision, which is in the possession of the bailiff who performs the service.

Additionally, there is a two-year deadline to file an appeal against a first-instance court decision, provided that the decision was not served by any party (otherwise, the aforementioned deadline applies). This two-year period starts from the day following the publication of the decision, a date which is indicated in the decision’s text itself.

The appeal deadline is automatically suspended during the period from August 1st to 31st (this applies only to the 30-day appeal deadline) and may also be suspended for reasons of force majeure, upon the request of the party filing the appeal late. In this request, the party must explain and prove to the court the reasons why they were unreasonably prevented by unforeseen events from submitting the appeal within the deadline.

3.What are the grounds for filing an appeal?

What distinguishes an appeal as a legal remedy is that there are no specific grounds required to file it. In other words, any legal or factual error in the decision can be a reason for appeal, allowing the party to seek its annulment and the retrial of the case at the appellate level.

The error could involve the court’s assessment of the evidence, with the party basing their appeal on this ground. However, the reason cited by the party in their appeal must be capable of supporting the annulment of the decision—the party must anticipate some benefit through this reason for the appeal against the first-instance decision.

For example, grounds for appeal that cannot be accepted are those related to the legal costs incurred by the party, without making any reference to the substance of the case in the appeal. Similarly, when the court has included additional details in its decision that do not pertain to the substance of the case but are merely redundant, the party cannot base their appeal solely on the fact that the court mentioned elements in the case that do not ultimately affect its judgment.

4.What can the higher court decide?

As mentioned at the beginning of the text, the appellate court has certain powers granted by law when dealing with a party’s appeal. First and foremost, it can dismiss the party’s appeal as unfounded if the grounds of the appeal are not proven or are not deemed sufficient to support the annulment of the decision. The same applies if the appeal was filed late or if it does not meet one of the legal requirements.

Alternatively, the appellate court can accept the party’s appeal as valid and proceed to annul the decision issued at the first level. In this case, the court will retain the case and judge it itself—it will not refer the case back to another court but will retry it from the beginning in the Court of Appeal. In this context, the Court of Appeal has all the powers granted to a court by law concerning its judgment on the case.

If the Court of Appeal takes up the case for judgment, it has the right to worsen the position of the party that filed the appeal. Since the case is being retried from scratch, the court may reduce the amount awarded to the party by the first-instance court, accept an objection raised by the opposing party, or even entirely dismiss the claim initially filed by the appellant.

5.When is the decision’s effect suspended?

Regarding the suspension of a decision’s effect, certain clarifications are necessary to avoid misunderstandings from what is commonly heard in daily life. The decision’s effect is suspended by law only during the appeal period—30 days if the decision has been served, and two years if it has not been served by either party to the other, as mentioned earlier regarding appeal deadlines.

This means that during the appeal’s adjudication, the decision is not suspended and can be executed normally if the party meets the legal conditions. If the decision is executed and the party’s appeal is later accepted (resulting in the decision being retroactively annulled), then that party may file a compensation claim against the opponent to recover what was paid due to the decision’s execution.

Moreover, even if the decision has been declared provisionally enforceable—meaning it can be executed without an appeal being filed yet—the law protects third parties who are not involved in the trial. It stipulates that, although the decision is provisionally enforceable, it cannot be executed against a third party as an exception. A classic example is a decision issued by a creditor against a general partnership, which cannot be enforced against a general partner until the decision becomes final.

6.What requests can I make to the Court of Appeal?

To avoid irrelevant claims being presented in court, the law sets certain restrictions on the arguments that a party can raise in the Court of Appeal:

• If a party is defending against the appeal filed by the opposing party, they can present any arguments that help maintain the decision of the first-instance court.
• A party cannot introduce a new argument in the Court of Appeal that was not raised in the first-instance court.
• The same applies to counterclaims: a counterclaim cannot be filed for the first time in the Court of Appeal.
• However, a party has the right to make ancillary requests related to the main claim they filed in the first-instance court.
• For example, if the party initially requested the return of a car from the opposing party, and the car was subsequently destroyed, they can request compensation for the destruction of the car in the Court of Appeal.
• The party can also introduce arguments in the Court of Appeal that were not raised at the first level due to a justified reason (e.g., because the deadline for filing submissions had passed).
• This also applies to arguments supported by documents or by the judicial admission of the opposing party.

7.Can I bring new evidence to the appellate court?

The law is lenient towards parties who might not have submitted all the necessary evidence in the first-instance court. It allows parties to present new evidence in the Court of Appeal without any restriction. Of course, parties can also submit the evidence they had previously presented in the first-instance court, even if it has already been examined.

However, the Court of Appeal has the discretion to reject new evidence submitted by the parties if they could have objectively presented that evidence in the first-instance court but failed to do so. The law requires that the failure to submit the evidence was not for the purpose of delaying the case or due to gross negligence—something that is difficult to prove in practice, which is why this provision is rarely used.

It is essential that the evidence submitted to the Court of Appeal must have been obtained legally, without violating others’ personal data, and without involving fraud or threats against the opposing party. If the evidence was obtained illegally, the court is obliged to reject it entirely, and there may be legal consequences for the parties who acquired the evidence through unlawful means.

8.What if I was absent from the first-instance court?

It is possible that a party was absent during the proceedings at the first-instance court, either because their lawyer did not file submissions, they were not represented by a lawyer at all, or their lawyer failed to file the required judicial stamp for the claim’s hearing, among other reasons. In this case, the question arises as to what the party who was absent (default judgment) in the first-instance jurisdiction should do.

The law provides the option to file an appeal against the first-instance court’s decision that led to their defeat. This position is advantageous for the party since they are allowed to present any arguments they wish in the Court of Appeal without any restriction. This is because the party did not have the opportunity to be “heard” in the first-instance court due to their absence.

If the party’s appeal is accepted, the court will annul the first-instance decision and definitively decide on their case. However, in this scenario, the party will have “lost” one level of jurisdiction. For this reason, the law offers an additional option: the party can simultaneously file a “motion to set aside a default judgment.” If the court accepts this motion, the case will return to the first-instance court, giving the party the chance to present their arguments at both levels of jurisdiction.

9.What happens if there were multiple parties in the first-instance trial?

In cases involving inheritances, it is common for there to be multiple parties, either on the side of the plaintiffs or the defendants. These parties do not always have shared interests, so the law needs to find a balance between these opposing interests. Often, not all parties wish to file an appeal against the decision; some may prefer to accept the ruling (and possibly their defeat) from the first level of jurisdiction.

The law stipulates that if multiple parties were defeated by the same judicial decision, even if only one of them files an appeal, the positive effects of that appeal will also apply to the others. In other words, the remaining parties can present their arguments in the Court of Appeal to avoid receiving a final decision without having had a fair chance at both levels of jurisdiction.

However, for this to occur, it is essential that the other parties have not accepted the decision or have not explicitly waived their right to appeal. Acceptance of the decision, as a legal term, means that the losing parties have not complied with the decision’s content if it was enforced against them, or they have explicitly reserved their rights in case they complied with the decision.

10.What are the rules regarding witnesses in the Court of Appeal?

As previously mentioned, the Court of Appeal may exceptionally hear witnesses requested by the parties, even on matters for which they had already testified in the first-instance court. However, witness testimony as a method of evidence is subject to certain limitations. Specifically, the law prohibits the use of witnesses when the matter concerns private or notarized documents or written agreements where the disputed amount exceeds €30,000.

Furthermore, witness testimony is not allowed to contradict the content of a written document. This restriction stems from the prevalence of false testimony in Greek courts, leading the Greek legislator to view witnesses with skepticism as a means of evidence. For this reason, individuals convicted of perjury are examined without taking an oath if their testimony is requested.

An exception to this rule allows witness testimony if the document in question was accidentally lost (and this can be proven), if witness testimony is customary under the circumstances (as in commercial transactions), or if the document cannot be obtained for legal or moral reasons (such as an informal gift between relatives who did not draft a document due to mutual trust).

Next to the client and his needs.

Athina Kontogianni-Lawyer

The above does not constitute legal advice, and no responsibility is assumed for it. For more information, please contact us.

1.What is the duration of a property lease?

After several laws regarding the duration of property leases and the (justified) disruption caused, the legislator decided to proceed as follows: Today, the lease of a property used as a residence has a legally mandated duration of at least 3 years. This means that the tenant can stay in the property for at least 3 years (unless the lease has been agreed upon for a longer period).

The above applies if the property lease was agreed upon for an indefinite period or even if it was agreed for a period shorter than 3 years (e.g., for 2 years with a right to renew the lease afterward). For leases lasting more than 9 years, the law requires them to be drawn up with a notarial deed and for the contract to be registered with the Mortgage Registry/Cadastre, just as it applies to property transfers.

The law also stipulates that if the lease was agreed upon for a specific period and, after it has expired, the tenant remains in the property with the owner’s consent, then the lease is considered to have been renewed for an indefinite period. However, the property owner must not have genuinely opposed the lease—if they have repeatedly notified the tenant about the lease’s expiration/adjustment of rent, then the lease is not considered to be renewed by law.

2.What applies to the furniture in the property?

This issue primarily depends on the agreement between the parties—if the furniture was already in the property before it was rented, it belongs to the owner, and the tenant is not entitled to remove it upon leaving the property. Conversely, if the furniture belongs to the tenant, they are entitled to use it without causing damage to the property and must remove it from the property when the lease ends (otherwise, it will be handed over to a custodian responsible for its safekeeping).

The law grants the lessor the right to establish a lien on all movable items brought by the tenant (and those residing with them) into the property during the lease. This means that if the tenant fails to meet their obligations to the lessor, the lessor has the right to auction off the movable items (mainly the tenant’s furniture) and use the proceeds to cover their financial claims against the tenant.

This lien covers the lessor’s claims against the tenant for overdue rent (including shared expenses, electricity, and water bills). It also includes legal expenses that may be required for evicting the tenant from the property if they refuse to vacate it when the lease expires, as well as compensation for use owed by the tenant for the time they remain in the property after the lease has expired. The other aspects of the lien are detailed in our related text, where we present the concept of liens in Greek law.

3.What are the obligations of the property owner?

Naturally, the lease agreement generates obligations for the lessor towards the tenant for the duration of the lease. Specifically, the lessor is legally obligated to:

• Deliver the property to the tenant in a condition suitable for the agreed use.
• Provide the tenant with a property free from actual/legal defects.
• Maintain the property suitable for the needs of the lease throughout its duration.
• Pay the taxes and regular charges associated with the property. This includes paying the ENFIA tax for the property, municipal fees imposed, and the Real Estate Transfer Tax (which has been abolished as of 1/1/2024 regarding property transfers).
• Repair occasional damages to the property (e.g., a water heater leak, falling plaster, etc.).
• Inform the tenant of any defects in the property that could endanger their life/health.
• Reimburse the tenant for expenses they incurred on behalf of the property, provided these expenses were necessary (if the expenses were luxurious/excessive, the tenant is not entitled to request reimbursement from the lessor).

4.What are the obligations of the tenant?

Similarly to the lessor, the tenant also has obligations towards them, primarily concerning the leased property. More specifically, the tenant is legally required to:

• Pay the agreed rent to the lessor. The term “rent” also includes the building’s common expenses as well as the payment of electricity and water bills related to the rented property.
• Accept the property from the lessor to prevent it from falling into disuse and developing defects due to lack of maintenance.
• Keep the property in good condition and generally suitable for the agreed use, especially if a business is operating on the property, where different rules may apply.
• Allow the lessor to visit the property from time to time to check its condition, as this is often stated as a term in lease agreements.
• Promptly inform the property owner of any damages that occur and need repair. If the tenant neglects to notify the owner or does so after a significant delay, they might be held responsible for the cost of the damages.
• Respect other residents of the building (if there are any) and avoid causing conflicts or problems with their behavior within the property.
• Comply with any other obligations agreed upon with the property owner, which should be included in the private agreement signed by the parties.

5.Can the tenant sublet the property to another person?

Subletting the property to a third party is generally allowed, provided it has not been explicitly prohibited in the agreement between the parties. However, the relationship between the original tenant and the lessor remains as it was at the start of the primary lease. It is different if the tenant simply grants the use of the property to a third party—in this case, the tenant is still responsible for paying the rent, and nothing changes in the lease agreement.

The law states that if the original tenant owes a significant amount of rent and is evicted from the property by the lessor for any reason, the subtenant will also be evicted, regardless of whether the subtenant has fulfilled their obligations. Additionally, the original tenant is liable to the owner for any damages caused by the subtenant to the property, regardless of the original tenant’s fault for the subtenant’s actions.

Of course, the subtenant has the same obligations to the original tenant as previously mentioned, and vice versa regarding the original tenant’s obligations. If the sublease was made in violation of the agreement between the tenant and the lessor, the property lease (and consequently the sublease) can be terminated, as such an action is considered by law to be misuse of the property and justifies the lessor’s termination of the lease.

6.What options does the tenant have if the property has defects?

Since it’s not uncommon for a rented property to have defects, the law provides certain rights to the tenant to protect their interests against the landlord. According to the law, the tenant is entitled to:

• Request the landlord to fix the defect in the property, provided the repair is possible. If the landlord unjustifiably refuses to fix the defect, the tenant may withhold the rent until the defect is corrected.
• Fix the defect themselves (the tenant) and seek reimbursement from the landlord for the expenses incurred due to the repair.
• Request a rent reduction from the landlord to the extent that the defect affects the value of the property. If the defect is so severe that it renders the property unusable, the tenant may refuse to pay the entire rent.
• Claim compensation from the landlord for the damages they suffered due to the defect (e.g., the inability to use the property for a certain period or having to stay in another property in the meantime).
• Terminate the lease even before its expiration if the defect is significant enough to be considered a serious reason justifying the early termination of the lease (this always depends on the circumstances).
• If the tenant exercises one of the above rights, they are not prevented by law from simultaneously exercising any of the other rights, provided that the exercise of one right does not fully cover their damages or claim against the landlord.

7.When can a lease be terminated?

The topic of termination and how the law distinguishes it was discussed in another text regarding employment contracts, so you can refer to that for additional information. Concerning the termination of a property lease, the law recognizes five reasons for which the termination of such an agreement is allowed. Therefore, the termination by either the tenant or the landlord must include at least one of the reasons listed below to be valid; otherwise, it will have no legal effect.

Specifically, the tenant is allowed to terminate the lease if the landlord does not grant them the use of the property immediately after the lease agreement is signed (or on the date when the property is supposed to be delivered). The landlord can also terminate the lease if the tenant delays the payment of rent (as defined above) for a significant period, generally two months or more, without a justified reason.

On the other hand, the tenant can terminate the lease if they suffer significant harm to their life or health due to the property’s use, especially if the property had a defect that caused this harm. The landlord, in contrast, is entitled to terminate the lease if the tenant is misusing the property and does not comply despite the landlord’s explicit objections. Finally, both parties can terminate the lease if a serious reason arises, which is deemed by law or by a court sufficient to end the lease even before its expiration.

8.What happens if the property is sold during the lease?

If the property is sold to a third-party buyer by the owner while the lease is still in effect, the law provides protections for the tenant under certain conditions. Specifically, the lease of the property must be proven with a document of certified date—either a private agreement that clearly indicates the date or, ideally, a notarized document that has been officially certified, leaving no doubt about the date of its creation.

If this condition is met, the new buyer who acquires the property becomes the landlord of the property, and the tenant must pay rent to this new owner. Naturally, the new landlord will also be bound by the obligations previously mentioned. The new landlord is required to respect the lease’s duration and can only terminate it for one of the reasons strictly provided by law, as discussed earlier.

Regarding rent payments that were overdue before the property’s sale, the former owner (and previous landlord) has the right to claim those from the tenant, as the buyer was not the landlord before the sale took place. If the property housed a business or store, the law protects the tenant for six months, as explained in another text about commercial lease conditions.

9.Can the tenant stay in the property after the lease ends?

When the lease expires, the tenant is obligated to vacate the property and return it to the landlord without any personal items they brought into it. If, however, the tenant remains in the property beyond that point, they will owe a usage fee—a monthly amount equivalent to the rent they paid during the lease.

In addition to this fee, the landlord has the right to demand compensation for any further damages not covered by the usage fee. This compensation could include the rent the landlord could have earned if they had rented out the property immediately after the previous tenant’s departure without delay. The same applies to any maintenance expenses required for the property.

These rules also apply if the property was subleased and the subtenant refuses to return it to the landlord, even though the lease has ended. It is important to note that there is no need for two separate court orders to evict both the tenant and the subtenant if subleasing has occurred. A single court order suffices to evict both the tenant and anyone claiming rights through them (such as the subtenant or their family members).

10.When can a civil servant terminate the lease?

Due to the difficulties many civil servants face in finding housing when frequently transferred to islands or border areas, the law grants civil servants the right to terminate a property lease as if it were an indefinite-term lease when they are transferred to another region or city. This means that they do not have to meet the strict requirements imposed by the law on fixed-term leases.

Specifically, the civil servant can terminate the lease at least 15 days before the end of the relevant month during which they plan to leave the property (since most leases are arranged on a monthly or annual basis). Of course, their family members can also leave, even if they are not civil servants themselves, in accordance with the law’s principle of leniency towards the tenant.

For these provisions to apply, the transfer or reassignment of the civil servant must have officially taken place—meaning that the administrative decision must have been issued, communicated to the civil servant, and published in the Government Gazette. To comply with legal requirements, the civil servant must inform the landlord about their upcoming transfer (and may need to provide the transfer document if requested).

Next to the client and his needs.

Athina Kontogianni-Lawyer

The above does not constitute legal advice, and no responsibility is assumed for it. For more information, please contact us.

1.What has changed regarding fines for drivers?

With the upcoming changes to the Road Traffic Code, as mentioned, a key area affected is how fines will be imposed on drivers. Essentially, the trend is to replace the written ticket issued by the police officer to the violator with an automated SMS that will inform them of the violation they committed as well as the penalty that applies.

The entire above process will be conducted using cameras that (will) be placed on main roads and highways to automatically determine whether the driver has committed a punishable violation. Of course, the violator can appeal to contest the violation through the appropriate authorities, while they can also use the evidence based on which the violation was attributed to them.

The fine imposed on the offending driver will also be posted on Taxisnet to notify them through this platform. However, the posting there primarily serves revenue purposes, as per the law, if the violator does not pay the monetary fine imposed by the ticket within 2 months, then the competent tax office where the violator is registered will be responsible for its collection. This means that an amount will be seized from their bank account to collect the fine, which will also include interest and collection costs.

2.What are the current speed limits?

With road accidents rapidly increasing this year, the legislator has decided to amend even the speed limits as provided in the Road Traffic Code. Specifically, the speed limit in urban areas will now be 30 kilometers per hour. Although the law does not yet specify anything regarding roads outside built-up areas, the limit (logically) will be set at 50 kilometers per hour. To enforce these limits, the use of drones (flying objects with built-in cameras) is also provided for, while a 175 euro administrative fine will be imposed for each violation.

As for the minimum speed limits, there was a proposal to reduce these to as low as 10 kilometers per hour when the vehicle is moving within an urban area. However, taking into account the Greek circumstances, this regulation will obviously change and will not apply as it stands, as it has no connection to reality and the traffic on the roads.

It is not certain whether the above modifications will be applied universally—whether they will be implemented immediately or if there will be a transitional period for drivers to adapt to the new changes, as well as for areas where objectively different speed limits should apply (such as on Kifisou Avenue). Perhaps a transitional period should be implemented so that the new law can effectively solve the problems that have been identified and not merely create new problems arising from the practical traffic needs of drivers.

3.When can I legally overtake another vehicle?

This is a topic that many believe they know, but it has some details that can be quite useful for any driver in order to avoid violations (and not incur the corresponding penalties). The rule here is that overtaking is always allowed from the left side of the vehicle and from the right side only if the vehicle in front has signaled its intention to turn left—its left turn signal is on and is visible to the driver wishing to overtake.

On the other hand, overtaking is prohibited when a driver in the lane has already started overtaking another vehicle (or has indicated the intention to start overtaking), as well as when the road is steep, foggy, poorly lit, or in general conditions where overtaking would be dangerous and could cause an accident. The same applies, of course, if the road has 4 lanes total (2 lanes for each direction of traffic), and if the driver’s overtaking significantly disrupts the traffic.

It goes without saying that the driver of the vehicle being overtaken must give the necessary space so that the overtaking can be done safely and does not create a traffic issue. If a driver attempts illegal overtaking and is detected by the authorities, a fine of 700 euros will be imposed. The same fine may also be imposed if they attempt to change lanes (on a road with multiple lanes) when such a maneuver is not feasible at that moment and could cause an accident.

4.What penalties are provided for dangerous driving?

The legislator has introduced a new criminal offense called “dangerous driving,” which includes a wide range of violations regarding vehicle traffic on the roads. Specifically, the offender is criminally punished if:

• They drive a vehicle on the road while having consumed alcohol or drugs, or if they are in a state of physical or mental exhaustion—i.e., they are tired or in a poor psychological state that does not allow them to drive with a clear mind.
• They drive a vehicle in the opposite direction of traffic as they should normally, as well as if they participate in impromptu races, which are always illegal, or if they load their vehicle in a manner that is not legal.
• They drive on a highway or expressway at a speed of 60 kilometers per hour over the permitted limit (i.e., at 190 kilometers per hour) and at a speed of 40 kilometers per hour over the permitted limit (i.e., at 70 kilometers per hour total) when in an urban area.
• They drive their vehicle in the Emergency Lane (E.L.) without having a legitimate reason that allows them to drive in that area.

For all the above violations, the penalties vary depending on the outcome of the violation:

• If the violation poses a danger to other property, the offender is punished with imprisonment of up to 3 years.
• If the violation poses a danger to a person, the offender is punished with imprisonment from 1 to 5 years.
• If the violation causes serious bodily harm to another person or damage to public facilities, the offender is punished with imprisonment of up to 10 years.
• If the act causes the death of another person, the offender is punished with imprisonment of at least 10 years.

5.I am driving my vehicle without license plates.Will I face penalties?

At this point, the law is clear and answers a question that has troubled the legal community for years: Is changing a license plate or altering the vehicle’s license plate details considered forgery or not? Much has been written on this issue, but it has ultimately become clear that even the vehicle’s license plate is considered a document under the law, and thus, if it is changed without the right to do so, the crime of forgery is committed.

For this specific offense, the law threatens imprisonment (i.e., from 10 days to 5 years) along with a monetary fine (from 300 to 40,000 euros). The severity of the violation also matters. For example, someone who commits forgery professionally and accumulates significant amounts of money from this activity can be punished with imprisonment of up to 10 years. In addition to the above penalties provided by the Penal Code, the offender will also be required to pay an administrative fine of 300 euros for the violation related to their vehicle’s license plates.

Separately, an offender who fails to ensure that their vehicle’s license plates are particularly legible—i.e., places tinted glass on the plates which is entirely prohibited or does not maintain their plates in good condition—will also be punished. However, these actions are not penalized as they are not considered “forgery” as required by law. The same does not apply to a perpetrator who changes license plates between their vehicles and drives with them; such an act is penalized as forgery since it involves falsification of information.

6.Can I place objects on the road to ‘reserve parking’?

It is quite common on Greek roads for objects or even other vehicles (e.g., a scooter) to be placed in order for vehicle owners to create new parking spaces for their vehicles. Since this issue has caused tensions, especially among neighbors in various areas, let’s see what the law states about it.

Specifically, it is generally prohibited for anyone to place obstacles on sidewalks or sections of roads that obstruct the free movement of vehicles as well as their parking. The term “obstacles” clearly refers to all kinds of movable items or even constructions, regardless of their size and how they are moved. For example, even someone who places old vehicles that have been immobilized or withdrawn in order to prevent other drivers from parking falls under the scope of this provision, and consequently, their behavior is illegal.

However, an exception can be made where permission is granted by the municipality of the area, with the agreement of the local Police Directorate, allowing the property owner to legally place these obstacles on the sidewalk or the road. It should be noted that this must occur in a low-traffic area, and after the obstacle is placed, there must still be enough space available for the movement and parking of other vehicles in the area—i.e., no significant problem should arise, an issue that is clearly judged on a case-by-case basis. Those who place obstacles on roads or sidewalks without obtaining such permission are fined 400 euros.

7.How can pedestrians cross the road?

To ensure the smooth flow of vehicle traffic on the roads, cooperation between drivers and pedestrians is also required to avoid accidents. In this context, and to clarify the rules regarding this area, the legislator has exhaustively regulated the matter. Thus, regarding pedestrians, they are obliged to:

• Always walk on the sidewalk and only exceptionally on the road—if they are carrying heavy objects or if they are individuals with disabilities.
• They can also walk in the lane designated for bicycles, provided they do not obstruct the traffic of bicycles and other vehicles in that area.
• If pedestrians walk on the road, they must move against the direction of traffic and always remain close to the edges of the road—in order to maintain visual contact with the drivers in that traffic lane.
• Always use the pedestrian crossing and only that to cross the road, provided that there is a pedestrian crossing.
• Comply with the traffic lights present on the road and act according to their indications.
• If there are no traffic lights, they should only cross the road after checking that no vehicles are approaching (especially if they are approaching at high speed).
• When crossing the road, they should not move extremely slowly or stop without reason, causing problems for the traffic.

8.When is a driver’s license revoked?

With the changes made to the Road Traffic Code (KOK), a new system of penalties has been introduced, which is quite different from previous ones and, of course, affects the driver’s license. Specifically:

• This system includes points, where if a driver accumulates 25 points, their driver’s license is revoked.
• Each violation committed by the driver counts as one point (even speeding tickets, meaning the severity of the violation does not matter).
• Some violations, due to their greater importance, add a higher number of points to the driver’s profile. For example, violating traffic signs or signals counts as 9 points in the evaluation system.
•  If the driver is a novice who has not yet completed 3 years of driving, each violation incurs three times the points that it would for an experienced driver (i.e., 3 points instead of 1 for a simple violation, and accordingly for other violations).
•  If the driver reaches the corresponding points and has their license revoked, they must retake the relevant theoretical and practical courses from the designated driving schools.
• They must also successfully pass the exams they are subjected to and be deemed capable of regaining their driver’s license.
• It is important to note that every point imposed on the driver due to the violation they committed is removed 4 years after the violation, provided that the driver has not committed any new violations in the meantime, which still applies.

9.Are maneuvers by motorcycles now allowed?

This practice, known to anyone who has driven a vehicle on the roads of Greece until now, was previously prohibited by law. In other words, the law prohibited mopeds/motorcycles from moving between traffic lanes of cars and crossing the road network through them. In fact, there was also a fine for this violation, amounting to 80 euros, but this was rarely enforced in practice since the situation seemed to have become normalized on all roads in Greece.

In a bill that is still under discussion, a proposal has been made to formally legalize the maneuvers by motorcycles/mopeds between the lanes used by other vehicles for their circulation. Of course, this will not happen without conditions; the regulation will logically allow such maneuvers while ensuring that the speed limits imposed by law (now set at 30 km/h in the city, as we have seen) are respected and definitely at a lower speed than that of the other vehicles in their respective lanes—to avoid sudden movements that could lead to an accident, as the motorcycle/moped driver would have difficulty reacting in time.

What we should remember from the above is that although the law allowing these maneuvers has not yet been formally passed, the relevant regulation should be considered a given due to the existing situation. This might also explain why more and more drivers are choosing motorcycles/mopeds for transportation, thus giving them an advantage over the cars we were familiar with until now.

10.What documents must a driver carry with them?

This topic is also quite interesting, as during a potential police check, the driver must first show their documents to the relevant authorities before discussing the violation they committed in that instance. Therefore, the legal documents that every driver must have with them in their vehicle are the following:

• The driver’s valid driving license.
• The vehicle’s registration certificate, which is usually distinguished by its green color.
• The vehicle’s insurance policy and proof of payment of the premiums for their vehicle.
• The proof of payment of the vehicle’s circulation fees (excluding, of course, those vehicles exempt from circulation fees due to low emissions).
• The Technical Inspection Certificate, which is the verification from the competent Technical Control Center (KTEO) that the vehicle is suitable for circulation.
• The vehicle’s Emission Card and the related certification for its proper functioning in this area.
• It goes without saying that the driver should have some form of identification (e.g., police ID/passport, etc.) to prove their identity.
• If the driver is a professional, they must also carry their professional driving license and a certificate of professional competence.

Next to the client and his needs.

Athina Kontogianni-Lawyer

The above does not constitute legal advice, and no responsibility is assumed for it. For more information, please contact us.

1.What kind of crimes do minors commit according to the law?

Taking into account their young age, the law treats crimes committed by minors as misdemeanors. This distinction has several consequences, one of which is the statute of limitations for the crime (misdemeanors expire five years from the day the defendant committed the crime, and this limitation cannot be extended for more than three years). Thus, the maximum statute of limitations for a crime is eight years, which also applies to minors.

Additionally, if a minor is younger than 15 years old, the crime they committed is not attributed to them—they will remain out of prison and will be subject to corrective or therapeutic measures, as we will see later. Moreover, if the minor is younger than 12 years old, they bear no criminal responsibility, and no corrective or therapeutic measures can be imposed. Minors are also released under more favorable conditions from prison, as the penalties imposed on them are not considered imprisonment in a way that complicates their path to release.

The legal age of the defendant when the crime was committed is crucial in determining if someone is considered a minor. In other words, it does not matter if the individual has reached adulthood by the time they are tried in the relevant court. According to the law, it is first examined whether corrective or therapeutic measures can be imposed on the minor to help them understand the severity of their actions. If these measures fail, the minor will be placed in a juvenile detention center—a facility for minors where no adults are present.

2.When can pre-trial detention be imposed on minors?

As mentioned in our text regarding the changes to the New Penal Code, the path to imprisoning minors has become easier following legislative changes. Specifically, only minors who are at least 15 years old can be held in juvenile prisons. Furthermore, the crime they committed must be classified as a felony if it were committed by an adult (this classification is based on the severity of the penalty, with felonies carrying a sentence of more than five years).

For a minor to be sentenced to confinement in a special facility, the court must justify why corrective or therapeutic measures failed in their case or why these measures are likely to fail. The detention of a minor in a juvenile facility can also be imposed if the minor violates the measures imposed on them and fails to comply, even if they have already received a warning from the relevant prosecutor. The court’s decision must specify the exact period the minor will remain in juvenile detention.

The law no longer requires that the crime committed by the minor involve violence or threaten the life or physical integrity of the victim—any crime that can be classified as a felony under the Penal Code, if committed by a minor, legally allows for the offender to be imprisoned. The court, on the other hand, has the option to convert the minor’s sentence to community service for a specified number of hours or allow the minor to serve their sentence under electronic monitoring (commonly known as the ‘bracelet’).

3.How long does pre-trial detention last?

Pre-trial detention refers to the holding of a minor in a corresponding facility (i.e., juvenile prison) from the day of their appearance before the investigative judge until the day of the trial. Specifically, the law provides that:

• Only minors aged 15 and over can be held in pre-trial detention if they have committed a crime that would be classified as a felony if committed by an adult.
• The duration of a minor’s pre-trial detention cannot exceed six months.
• Pre-trial detention for minors cannot be extended beyond six months (unlike adults).
• The warrant imposing pre-trial detention must specifically justify why corrective/therapeutic measures would not be effective in changing the minor’s behavior, considering their personality and character traits.
• The same applies to the restrictive conditions imposed on the minor (e.g., posting bail, travel restrictions, mandatory periodic appearances at a police station, etc.). These conditions must also be deemed insufficient for the minor.
• If the minor requests it, they may remain in their home under electronic monitoring, provided that all necessary legal conditions for detention are met (as previously analyzed).
• In general, pre-trial detention is imposed on a minor when they are considered a flight risk or a danger to commit other crimes if released. However, it is not enough for the court to merely assess the severity of the crime; other factors must also be considered.
• The minor has the right to appeal the decision of the investigative judge who imposed the pre-trial detention or the council of misdemeanors court, requesting that the detention be lifted or replaced with a restrictive condition (even with electronic monitoring).

4.What has changed in filing a complaint today?

Regarding the complaint for a criminal act committed, it (the complaint) can be made by any third party other than the victim, primarily by witnesses of the incident. The complaint can be filed directly with the public prosecutor or with an investigative officer (police, coast guard, etc.). It can be submitted either directly by the complainant or by someone authorized by the complainant. However, in this case, the authenticity of the complainant’s signature must be certified by any public authority, electronically, or by a lawyer. If the complaint is made orally with a written report, certification of the signature’s authenticity is not required.

The situation is different with the so-called ‘claim,’ which is essentially the victim’s statement expressing their desire to pursue criminal prosecution against the perpetrator. The claim is made following the same procedures as the complaint. The law requires that the victim’s claim describe the criminal act accurately (without necessarily giving it a legal classification) and that the facts support a charge for a crime punishable under the Penal Code or other laws. The claim must not be vague or obviously unfounded, as it risks being dismissed by the prosecutor.

A recent change is that anonymous complaints (from third parties) are now immediately dismissed by the relevant prosecutor without any further investigation. The same applies if the complaint is made using a non-existent name or does not follow the legal procedures outlined earlier. For a victim to file a claim today, they must first pay a fee of 100 euros. This fee is not required in cases involving crimes against sexual freedom, domestic violence, or crimes motivated by racism, among others. The fee is also not required when the crime is committed against a public organization or civil servant, and the claim is filed by the civil servant on behalf of themselves or the organization they work for.

5.What are the so-called measures imposed on minors?

A key feature of the law is that it generally imposes corrective or therapeutic measures on minors for the actions they commit. Corrective measures that the court may impose include placing the minor in foster care, requiring the minor to attend a therapeutic program, assigning the minor to community service, or placing the minor in an institution, among other options. The court can impose either a single measure or a combination of measures, depending on the specific circumstances of the minor. The maximum duration of the corrective measure imposed on the minor must also be specified.

Therapeutic measures may include placing the minor in the care of another family, admitting the minor to an institution, or requiring the minor to participate in a therapeutic program. These measures are similar to corrective measures but are specifically intended for cases where the minor suffers from a mental disorder, addiction to alcohol, drugs, or electronic devices, and is unable to overcome these issues on their own. If any of these conditions apply, the minor is considered to require special treatment, justifying the imposition of these measures by the court.

The court also has the authority to replace the corrective measures imposed on the minor with therapeutic ones at any time, provided there is a report from the relevant juvenile service. It can also terminate these measures if the purpose for which they were imposed has been fulfilled, meaning that the minor’s behavior has improved, they are now physically and mentally healthy, and they have recognized the seriousness of their crime. Measures imposed on the minor generally cease to be in effect when the minor reaches the age of 18, although they can be extended up to the age of 25 in exceptional cases, following a corresponding report.

6.How are minors referred to trial?

When it comes to referring the accused to court, the law provides the following options: either the accused is referred by a decision of the council of misdemeanors court, which, once it becomes final, “seals” the referral of the accused to the courtroom for trial. The accused has the legal right to appeal this decision if they believe it to be incorrect.

Alternatively, the accused can be referred to court by a direct summons, which is a document served to them specifying the trial date. For the accused to be referred in this manner, the prosecutor must agree to the referral, and the president of the court of appeals must also provide their consent. This method bypasses the often lengthy process of judicial councils.

Since the law no longer differentiates in the case of a minor defendant who is to be tried, the minor can be referred to court using either of the two methods described. However, for a minor to be directly summoned to court, they must have committed a felony under specific laws (e.g., drugs, weapons, etc.), or they must have committed a particularly serious theft or robbery, as only these specific crimes allow the accused to be referred to the courtroom by direct summons.

7.What is the difference between serious bodily harm and simple bodily harm?

This distinction is significant because serious bodily harm can lead to a prison sentence (5 to 20 years) for the accused if they inflicted it on the victim intentionally. In contrast, simple bodily harm is punishable by up to 2 years in prison or just a fine. Simple bodily harm as a crime is prosecuted only upon the victim’s complaint, while serious bodily harm is prosecuted ex officio as an offense.

Serious bodily harm generally refers to harm that can put the victim’s life at risk or cause long-term illness, serious mutilation, or even disability. This includes acts that prevent the victim from using their body or mind for a considerable period. These criteria are more objective, as the consequences of the act have a lasting impact on the victim’s physical or mental health.

The standard for serious bodily harm is that it is punishable by at least 2 years in prison (up to 5 years) if it is caused by negligence or with conditional intent—the perpetrator accepted the possibility of causing serious bodily harm to the victim but believed it would not actually occur. If, on the other hand, the perpetrator deliberately intended to cause serious bodily harm, they are punishable by 5 to 20 years in prison. If the serious bodily harm resulted in the victim’s death, the perpetrator faces a prison sentence of up to 10 years.

8.Can minors serve their sentence under house arrest with an electronic bracelet?

If a minor sentenced to imprisonment wishes to serve the remainder of their sentence at home under electronic monitoring, the law provides this option under certain conditions. Specifically, the minor must have served one-third of the sentence imposed on them and, in any case, must have remained in prison for a period equal to one-fifth of their sentence.

The court may also grant the minor permission to leave their home for certain hours each day for reasons such as education, health, participation in a rehabilitation program, etc. These hours can also be determined by the prosecutor, who has the right to modify them if they are deemed incompatible with the personality and characteristics of the convicted minor.

Finally, if the minor commits a misdemeanor as an adult during the period of electronic monitoring and is subsequently convicted with a final decision to at least one year of imprisonment, then their release from prison is revoked, and they are required to return to prison. The same applies if the individual, as an adult, commits a crime considered a felony by law. If the minor successfully completes the probationary period without committing any crime, the sentence is considered to have been served, even though it was served under electronic monitoring.

9.When can a minor be released from prison?

Regarding the time when a minor may be released from prison, the law specifies the following:

• A minor can be released from a juvenile detention center after serving half of their sentence.
• The court also sets a probationary period during which the minor must not commit the same or another crime; otherwise, they will return to prison to serve the remainder of their sentence.
• This probationary period can last up to the remainder of the sentence that the minor has to serve after subtracting the portion already served in prison.
• If the above conditions are met, the court is obligated to release the minor from prison unless, with a special justification, it deems it necessary for the minor to remain in detention.
• If the minor’s release application is rejected by the court, they can submit a new application two months after the rejection unless new evidence is found, in which case the new application can be submitted earlier.
•  Before the court convenes to consider the minor’s release application, the minor must be notified at least ten days in advance and can attend in person or through a lawyer to present their case.
• If there are compelling reasons and the minor has already served one-third of their sentence, they may submit an exceptional application for release, which the court may accept.
• If the minor violates the conditions imposed during their release period, their release may be revoked if it is believed that the minor will not fulfill their obligations in the future.

10.What does the law provide in cases of a brawl?

Given that brawling is a fairly common crime, especially among minors, the law has specifically addressed it. More precisely, it states that each participant (even a minor) is punished for the crime of brawling simply by their involvement—meaning that mere participation in the altercation is enough, regardless of whether they received blows, etc.

However, the participant may remain unpunished if it is proven that they were involved in the brawl without fault. This means that if the minor was attacked by several others (since a brawl, by definition, involves more than two participants), they are considered to be in self-defense and thus will not be punished for their involvement. However, the force used against the attackers must be proportionate to the force received, meaning it must not exceed the necessary level of defense.

Otherwise, the penalty for the crime of brawling is set by law at up to three years of imprisonment or a fine. The fact that the law mentions that a brawl must result in death or serious bodily injury to one of the victims is not a necessary element for the crime to be considered committed—the crime is deemed complete with the mere participation of the perpetrator in the brawl, and death or serious bodily injury are only considered as aggravating factors when determining the penalty.

Next to the client and his needs.

Athina Kontogianni-Lawyer

The above does not constitute legal advice, and no responsibility is assumed for it. For more information, please contact us.

1.What do we mean by fraud?

In order to limit disputes, the law has provided a clear definition of the concept of fraud. Therefore, any related act that is considered fraud and is thus illegal must include the following elements. More specifically, fraud is considered the act/omission of another that causes deception in the person entering into the contract, such that the latter does not have a clear and correct perception of the facts.

In other words, the contracting party is presented with facts that do not correspond to reality and which aim to influence their will. The concept of facts includes existing situations, not evaluative judgments that anyone could express (e.g., that product X is the best on the market). These situations or facts can refer to the past/present or even the future.

The concept of fraud also includes the concealment of the actual situation as well as facts that would help the contracting party know the truth of the matters. For example, someone who conceals that the item to be sold has a defect commits fraud, provided they know the defect (or even if they could know it based on the circumstances of the case).

2.What are the conditions for fraud to be considered serious by law?

In order to evaluate fraud against someone as ‘serious,’ the law requires certain conditions to be met. Specifically, the person who deceived the contracting party must have intended to deceive them—that is, they must not have been completely negligent and, for this reason, must not have presented as they should have all the details of the contract to be signed/all the characteristics of the item to be purchased.

It is also necessary for the deceived party to have had significant deception regarding the elements presented to them and those they ultimately chose to enter into the contract; if it is about trivial details, the court may consider that it was not fraud against the victim. Furthermore, the contracting party must have been led to enter into the contract/purchase the item solely because of the fraud, without any other act or internal thought intervening that influenced their decision-making more.

Finally, the victim’s ability to perceive the fraud is of great importance, meaning whether they could understand that the item does not have the characteristics that were presented to them/that the contract would be valid under completely different terms from those they signed or thought. In this regard, the victim’s age/educational level/social experiences/familiarity with the perpetrator of the fraud (i.e., whether they knew the perpetrator or had familiarity and therefore trust if it was a relative or friend) are taken into account.

3.Is the deception I had when I was deceived significant?

The deception that the victim of fraud must have for it to be legally considered that they were deceived can take many forms due to the complexity of transactions. Firstly, the law states that if both parties were deceived when forming the contract, then the contract can be annulled, as the parties intended to declare something different from what they ultimately declared. Exceptionally, the contract may still be valid in the actual sense if each party accepts the statement of the other side, as it would apply in reality.

In addition, the law recognizes the deception of the contracting party regarding the characteristics of the person with whom they will enter into a contract or regarding the item they will purchase. This type of deception is considered significant and can constitute fraud, provided that the contracting party’s deception regarding the person or the characteristics of the item was so important that, had they known the truth, they would not have proceeded with the contract or purchased the product. As we can see, this specific issue (with some exceptions) is judged quite subjectively.

Finally, a common category of deception is where the contracting party has a mistaken perception of the facts on their own and, based on this perception, enters into the contract. Clearly, there is no fraud in this case since the contracting party is declaring exactly what they think; the only issue is that their thought does not correspond to reality. This type of deception is irrelevant to the law, and therefore there is no obligation for compensation for the contracting party who was deceived in this way.

4.Is fraud punishable by law?

Due to the significance of the offense of fraud, the law punishes it criminally as well. More specifically, the sanctions imposed when fraud is committed in at least one of the ways described above are as follows:

• The perpetrator of the fraud is subject to imprisonment, which can range from 10 days to 5 years. It should be noted that if the sentence imposed is up to 1 year, it can now be suspended based on the new Penal Code.
• If the property damage caused to the victim by the fraud was particularly significant (this criterion is quite relative in practice), then the penalty provided is imprisonment for at least 3 months and a financial penalty.
• Additionally, if the perpetrator caused property damage to the victim due to the fraud that exceeds €120,000, the court will impose a sentence of imprisonment for up to 10 years and a financial penalty.
• Finally, if the perpetrator committed fraud against the State/municipalities/regions/the European Union, the imposed penalty is imprisonment for at least 10 years (which can go up to 20 years), as well as a financial penalty.
• The amount of the financial penalty is set from €300 to €40,000 when it concerns misdemeanors and from €5 to €120,000 when it concerns felonies. Therefore, depending on the severity of the fraud act, the financial penalty will fall into the corresponding category.
• In order to be punished as the perpetrator of the crime of fraud, one must have actually caused damage to someone else’s property—that is, there must have been a decrease in the active property or an increase in the passive property, meaning the victim’s debts to others due to the fraud.
• It is not necessary for the perpetrator to have acquired the property benefit, meaning the monetary amount from the victim’s property. It is sufficient that they had the corresponding intention to acquire it.

5.What if a third party was deceived?Does anything change in this case?

It is possible that the victim of fraud dealt with someone who was unaware of the facts of the fraud, who, in turn, dealt with the perpetrator of the fraud. In this case, the intermediary person has no responsibility for the fraud and the damage caused to the victim, and thus the contract cannot be annulled, as the latter was not aware/was not supposed to be aware of the perpetrator’s fraud against the victim.

However, things change if the intermediary person, although considered a third party in relation to the contract, knew or should have known the actual facts and thus the perpetration of fraud against the victim—they could have alerted the victim and informed them that, for example, the item being sold does not have the agreed-upon characteristics. In this case, the intermediary person also bears responsibility, so the contract may be annulled, and correspondingly, the intermediary person may be required to provide compensation, as we will see below.

For all of the above to apply, there must be a third party participating in the contract, and the third party must actually be considered as such. More specifically, an employee of an employer/the contractor/those assigned to perform certain tasks, who may be liable by law to others for the damage caused, is not considered a third party in relation to the contract, and therefore all of the above do not apply to them. We have elaborated on this issue in another text, which analyzes the relationship between the third party and the supervisor.

6.Can I be compensated if I fell victim to fraud?

A fundamental option offered by the law to victims of fraud is to seek compensation from the perpetrator. It is understood that the victim can also legally annul the contract they signed while simultaneously receiving compensation. The specific compensation that the victim receives is comprehensive, meaning it includes all the damage they suffered from the contract as well as any other damage that is not covered by the contract.

For example, if the victim was defrauded and signed a car purchase agreement, they can seek compensation for the price (and the deposit) they paid to the perpetrator of the fraud, as well as any expenses they incurred (e.g., fees for a mechanic for a technical inspection of the vehicle/fees for an insurance agent for arranging insurance for the car/payment of road taxes, etc.).

In addition to these amounts, the victim can also request the monetary amounts they lost because they believed they had signed a formally valid contract, while in reality, it was void due to the fraud. That is, if, in the example above, the victim had the opportunity to purchase another car at a better price but signed the contract due to fraud for the first car, they can seek compensation for the difference between the prices of the two vehicles from the perpetrator of the fraud.

7.Is there a chance that I won’t receive compensation as a victim?

Considering that the victim may have contributed to the fraudulent behavior with their conduct, there are cases where, under the law, the compensation that they would normally be entitled to can be reduced or completely limited. A classic case here is when the victim did not demonstrate the necessary diligence required in transactions to prevent fraud on their own, to the extent that this would have been feasible.

Of course, the above measure of diligence depends on many factors, such as the victim’s age, etc. However, there are also objective criteria in place so that the law responds to the needs of transactions. The criteria adopted concern the average person in everyday life, meaning the general rules that most people know today (e.g., consumers are not obligated to pay if they do not receive a receipt/invoice).

For example, if a potential buyer did not conduct a title search for the property and signed the sales contract, they cannot later claim that they were defrauded by the seller, who assured them that the property had no encumbrances. This is because conducting a title search is a necessary step before proceeding with a property transfer, and neglecting it indicates gross negligence on the part of the corresponding buyer.

8.How does the law address frauds related to subsidies through the ESPA program?

Since this phenomenon was quite widespread in Greece for many years, it was necessary for the law to regulate it in order to protect transactions. Specifically, for fraud related to ESPA subsidies, the following provisions apply:

• The submission of incomplete information or the submission of false information and the corresponding supporting documents is punishable, especially if the latter are forged.
• These documents must be submitted for the request of the beneficiary to be approved so that the beneficiary can receive the subsidy, maintain it, or avoid returning it to the public.
• It is also necessary for the beneficiary’s request to have been approved, and thus some of the actions we described above must have taken place.
• If all the elements mentioned are met, the perpetrator of the fraud is punished with imprisonment of at least one year and a monetary penalty.
• The same exact penalty applies to a perpetrator who uses items/materials that are prohibited by the terms of the subsidy, thereby violating the terms of the contract based on which they would receive the subsidy.
• If the amount of the ESPA subsidy exceeds €120,000, then the perpetrator of the fraud is punished with a prison sentence of up to 10 years and a monetary penalty.
• Naturally, the government can seek to recover the amounts it paid to the perpetrator as a subsidy through a lawsuit for unjust enrichment, which we have discussed in another text.

9.How can I annul a contract in which I was defrauded?

As mentioned in the second question, the conditions for fraud are specific, and the law allows the victim to annul the contract they signed if these conditions are met. However, the error that occurred in the victim must have influenced the contract to a certain degree, as we discussed above. If the error of the victim who was defrauded did not significantly impact the contract and the perpetrator fulfilled the contract according to the true intention of the victim, the court has the discretion not to annul the contract, and thus it will remain valid.

Whether the victim’s error was essential or not for the contract will be determined on a case-by-case basis. For example, if the victim signs for the purchase of a property that they believe is within a building plan, but the property is actually outside the plan, this error is considered essential as it essentially restricts the zoning of the property. If the perpetrator deceitfully concealed from the victim that the property is in an out-of-plan zone, it would also constitute a case of fraud.

On the other hand, if the victim mistakenly filled out a private agreement stating they would pay the other party €500,000 in cash when they meant to write €50,000, and the other party ultimately collects €50,000 from the victim, the contract will remain valid since it was executed as the parties actually intended. The issue, therefore, has many nuances that vary depending on the circumstances.

10.Can I receive compensation if the contract is executed?

A final option that the law provides to the victim of fraud is, instead of annulling the signed contract and requiring the parties to return what they received from each other, for the following to occur: the contract remains valid and thus produces legal effects for the parties, while at the same time, the victim of the fraud receives as compensation the difference between the contract that was signed and the contract that the parties should have signed had the victim not been defrauded.

This scenario primarily appears in contract clauses that are usually added “at the last moment” to the contract without one party’s knowledge, resulting in an increase in their obligations towards the other party. In this case, a contract like this would be valid without the clause that one party deceitfully added while defrauding the other (e.g., a penalty clause stipulating that for each day of delay in the delivery of the project, a penalty of €100 will be imposed on the other party, a clause that the other party was unaware of when signing the contract).

Here, it should be noted that if the victim of the fraud chooses the option we described—to allow the contract to operate normally and receive a “small” compensation—then they cannot later annul the contract and demand the full compensation provided by law. After the victim of fraud chooses one of the available options provided to them, they cannot change their mind and switch to another option, as such a move would catch the other party by surprise, which would have reasonably prepared for the execution of the contract/for the payment of compensation to the victim.

Next to the client and his needs.

Athina Kontogianni-Lawyer

The above does not constitute legal advice, and no responsibility is assumed for it. For more information, please contact us.

1.What is a “right of common ownership”?

The term “right of common ownership” simply refers to the coexistence of multiple rights, whether of the same or even different kinds, over the same asset, whether movable or immovable. Thus, each person who holds a right over the asset is called a “co-owner,” and their share is expressed as a percentage of the whole asset. For example, we might say that person A is the owner of 3/8 undivided of a property.

What is important to note is that the asset is not physically divided, and therefore, each co-owner can use the entire movable or immovable asset for their needs, as we will see further on. The fact that their share is 3/8 of the asset does not mean that the asset is mentally divided and that they can only use that specific “part” corresponding to their share.

Furthermore, it is possible for different co-owners to have different rights over the asset. Specifically, when dealing with real estate, one of them may own 2/8 of the property’s ownership, while another may hold 3/8 of its usufruct, etc. This situation does not cause legal problems, and usually, co-owners can resolve their disputes by applying the provisions of the law for each right separately.

2.What are the rights of a co-owner?

The co-owner’s share in the property obviously grants them certain rights that they can exercise even against other co-owners. More specifically, the co-owner has the right to:

• Receive the fruits and benefits of the property in proportion to their share. The co-owner retains this right even if they did not exercise it from the beginning but claimed it after a while. However, they can agree with the other co-owners that a particular co-owner will be excluded from the property’s fruits (usually in exchange for another consideration).
• Use the common property for their needs. A key condition here is that the use of the property by other co-owners should not be hindered, provided that they exercise their corresponding right to use the property. It is understood that the right to use extends to the whole property, as mentioned earlier, and not just to the co-owner’s proportional share.
• Freely transfer their share of the property. This means they can sell their share to another person, agree to exchange shares with another co-owner of the same property, or establish a real right on their share, like a mortgage, etc. However, they cannot validly lease their share to another without the consent of the other co-owners, as we will see.

3.What if the property was already rented before I acquired a share in it?

In practice, it is possible that a property is already rented, and subsequently, someone (now a co-owner) acquires an undivided share in it. The co-owner naturally has the right to receive the fruits of the property, i.e., the rent arising from the property’s lease. The tenant can pay the full rent either to one co-owner or to each co-owner separately, in smaller amounts derived from each co-owner’s share (this is usually a matter of agreement).

The co-owner can claim a share of the rent from the lease of the property, provided that the lease started or was renewed relatively recently after they acquired a share in the property. They cannot claim a share for previous leases that were in effect long before they obtained an undivided share of the property.

Upon acquiring a share, the co-owner can also have a say in the extension or renewal of the property’s lease, in agreement with the other co-owners. A majority of shares (more than 50% or 2/3 of the shares) is needed to make a valid decision. It is understood that if one co-owner exclusively uses the property for their own residence or exploitation, the other co-owners can seek compensation, which is calculated based on the rent the co-owner would have to pay for using a similar property in the area, compared to the average rent in the area.

4.Does a co-owner also have corresponding obligations?

Regarding the obligations of a co-owner, they are initially required to:

• Compensate the other co-owners of the property (especially the co-owners) if they cause damage to them through their actions. For example, if they get involved in a legal dispute due to a neighboring rights issue related to the property, and the other co-owners are harmed without any fault of their own, they should be compensated for the expenses they incurred.
• Participate in the expenses of the property, which can be of any kind, such as municipal fees/ENFIA/property identification document costs. Obviously, the co-owner must cover these expenses in proportion to their share, and if they pay additional expenses beyond their share, they can seek reimbursement from the other co-owners.
• Act in good faith towards the other co-owners, meaning they should not intentionally try to harm their interests—for example, by unreasonably refusing to approve a decision that would be beneficial for the property’s exploitation.
• Attempt to resolve disputes with other co-owners out of court, rather than taking legal action over minor violations that could be settled through discussion with the other co-owners.
• In case the co-ownership is dissolved (through one of the ways we will discuss later), cooperate with the other co-owners for the needs of the process, especially when the court is involved, and various documents that the co-owners possess and are familiar with need to be submitted.

5.How is the common property managed?

The method of managing the common property depends on the changes or modifications that are being proposed by the co-owners. For simple or routine changes that do not radically alter the common property but even fall under its maintenance, the co-owners can make decisions among themselves by majority vote. Since the law does not specify, a simple majority may suffice—meaning that more than 50% of the votes of the shares are required to make a valid decision.

For changes or interventions to the common property that are disproportionately costly or do not fit with its intended use, unanimity among the co-owners is required to make a valid decision. That is, all co-owners must vote in favor of the specific proposal, and the decision may be rejected even if only one of them disagrees.

For example, renting out the property to a third party requires a simple majority of the co-owners’ shares to make a valid decision. However, a significant renovation of the property, changing its use to a commercial space for a business lease, or selling the property to a third party requires the unanimous agreement of the co-owners for these actions to be valid. Of course, it always depends on the nature and purpose of the specific property where the proposed action would bring a substantial or non-substantial change.

6.What if the co-owners disagree on the management of the property?

In this case, the law stipulates that the court will become responsible for determining how the common property will be managed. However, this is under the condition that the management of the common property is impossible either due to issues among the co-owners (e.g., they cannot reach a decision due to disagreements) or even due to force majeure (e.g., a co-owner has passed away or been declared under legal guardianship, and their heirs have not yet acquired their share of the common property).

The court must arrange the management of the property in a way that does not harm the interests of the co-owners. The co-owners cannot subsequently alter the arrangement for the common property as established by the court’s decision through a new decision among themselves. To make such a change, they would need to file a new lawsuit requesting a modification of the property management regulation if the circumstances upon which the previous decision was based have changed.

It is important to note that the court’s decision cannot address matters that require unanimous agreement from the co-owners for a decision to be made. Such matters include the sale or transfer of the common property in any way, for which the consent of all co-owners is necessary. For better management of the common property, the court may appoint an administrator, who will have the authority to represent the co-owners in both legal and out-of-court matters, concerning contracts and legal relations related to the common property.

7.Can I transfer my share to the other co-owners in exchange for compensation?

Given that transactions proceed at a rapid pace, the law allows each co-owner to transfer their ideal share of the common property either to another co-owner or to a third party for an agreed-upon compensation. They may also encumber their share of the property with a real right (e.g., to establish a mortgage on their share of the property), provided that this does not hinder the use of the common property by the other co-owners.

It is self-evident that a co-owner cannot allocate a specific part of the property to another co-owner or a third party, as their ideal share encompasses the entire property and not a particular portion of it. Similarly, they do not have the right to lease their ideal share to another person, as a valid lease would require the transfer of the entire property to the third party, which is impossible due to the disagreement of the other co-owners.

In contrast, if two co-owners share 50% undivided ownership of a property, each can validly lease their share of the property to the other, provided there is an agreement among all co-owners on the management of the property, and the decision is ultimately legal. Thus, the legal relationship between the two co-owners will change, with one becoming the tenant and bearing all the obligations under the law towards the other, while the other co-owner assumes the role of the lessor.

8.How is the co-ownership dissolved?

The legal relationship of co-ownership between the co-owners can be dissolved in various ways as provided by law. The preferred method here is an out-of-court resolution if the co-owners agree. More specifically, the co-ownership can be dissolved:

• By exchanging the ideal shares of the co-owners among themselves, meaning that one co-owner can acquire the shares of the others and thus become the sole owner of the property. However, the exchange contract must be executed by a notary and registered as is generally required for property transfers.
• Through a partition lawsuit in court. Practically, any co-owner can file a lawsuit requesting the court to either divide the property into separate plots or to sell the entire property as a whole.
• The co-owners can agree among themselves to prohibit a partition lawsuit for up to 10 years, meaning that the co-ownership cannot be dissolved during this period, and they must wait for a later time to do so.
• This lawsuit must be filed against all co-owners of the property; therefore, their residence and details must be known to serve the necessary documents.
• The partition can also be achieved by establishing horizontal ownership of the property, especially if it is a building where no horizontal ownership has been previously established. Thus, each co-owner will receive one or more apartments according to the size of their share.
• If there are disagreements among the co-owners regarding the horizontal ownership, the difference in the value of each share can be compensated in cash from one co-owner to the other.
• Vertical ownership can also be established on the property, provided that the co-owners’ shares are equal. Each co-owner would then receive one ownership unit, according to a court decision.

9.Can the common property be auctioned?

If the judicial partition of the property fails using any of the methods mentioned above, the law provides the option to auction the property so that the co-owners can be compensated from the proceeds according to the size of their respective shares. The auction process follows the procedures described in the law, which will be detailed in another document.

Specifically, a judicial officer must prepare a description report of the property, and a specialist appraiser must estimate its value to set the starting bid price. It should be noted that the fees for these individuals, as well as those of the notary, are considered expenses of the process, which will be deducted from the auction proceeds, with the remaining amount distributed to the co-owners to satisfy their financial claims based on their shares.

If a co-owner disagrees with the description of the property or the starting bid price set for it, they may file an appeal requesting either the annulment and repetition of the process from the point where the error occurred or the correction of the description report to clarify the identity of the property, preventing confusion among the public interested in bidding.

10.How does co-ownership work in the payment of ENFIA (property tax)?

As mentioned earlier, a fundamental obligation of the co-owners is to cover the regular expenses of the property, including the payment of ENFIA (property tax). The law states that the primary person responsible for paying the tax is the owner of the property and anyone who has acquired a right over it, such as the bare owner, the usufructuary (if the usufruct has been separated from the bare ownership), someone receiving the property as a gift, or the highest bidder who acquires the property through an auction.

Therefore, according to the law, the owner of the property is obligated to pay the ENFIA according to their ownership percentage. In cases where there are multiple co-owners of a property, all are liable for the payment of the tax, each up to the extent of their share. If a co-owner pays more tax than is due for their share, they have the right to seek reimbursement from the other co-owners for the excess amount paid.

Regarding usufruct, the law differs: even though the usufructuary is responsible for paying the ENFIA on behalf of the property, their liability decreases as their age increases. For example, an 80-year-old usufructuary is obligated to pay only 1/10 of the total ENFIA assessed on the property. The remaining tax, after subtracting the amount due from the usufructuary, must be paid by the bare owner of the property.

Next to the client and his needs.

Athina Kontogianni-Lawyer

The above does not constitute legal advice, and no responsibility is assumed for it. For more information, please contact us.

1.What do we mean by neighbor law?

Neighbor law generally refers to the limitations that may be imposed on the ownership rights of each property owner due to coexistence with the corresponding rights of others. After all, for harmonious coexistence among multiple individuals, it is necessary that certain rights are restricted (either directly or indirectly) to avoid conflicts. Additionally, some prohibitions arise directly from the law (and thus do not require interpretation), while others are derived interpretatively from it. The main consequence of this is that the second category of prohibitions (e.g., a neighbor requesting access through another’s property) requires a contract or court decision and does not always establish a claim directly from the law. Finally, it is important to note that the provisions established by neighbor law do not constitute mandatory law; thus, they can be varied by agreement between the parties, and they generally operate between the parties (their validity does not extend to all simply because of an agreement between two property owners).

2.My neighbor is causing noise.What can I do?

The law stipulates that, in principle, a property owner must tolerate certain noise emissions from a neighboring property, but only if they are customary for the use of the property and do not exceed a necessary limit (e.g., if renovation is taking place in the apartment above and the work is not being done during designated quiet hours). It is worth noting that the balancing of interests here is done with objective criteria (what purpose the neighboring property serves) and not subjective ones (e.g., the character of the neighbor). Furthermore, it has been legally determined that it does not matter which of the two property owners has been in the area longer, nor whether the damaging actions occurred before the troubled neighbor moved into their property. Therefore, the owner of the affected property is entitled to file a negative action against their neighbor (Civil Code 1108) to seek the removal of the infringement and its cessation in the future (while a claim for damages is not excluded). Similarly, if they are not the owner but the possessor (e.g., a tenant renting a house they do not own), they can file an action for the disturbance of possession instead of a declaratory action and request precautionary measures for possession if they desire temporary judicial protection.

3.What claims do I have if a building is being constructed on a neighboring property?

In this case, the owner of the neighboring property has the following legal options:

• To request the prohibition of the entire installation on the neighboring property if it is being done in violation of the authority’s permit (even when there is no permit at all) or specific legal terms required (e.g., zoning regulations regarding the building coefficient).
• If the installation has been completed (e.g., a farm has been built on the neighboring property), they can request its removal, meaning their neighbor must abolish it only if it leads to excessively harmful and illegal consequences for the neighboring property. If these consequences are expected to occur in the future, they must be foreseen as certain and not merely as conjecture (according to the usual course of events).

4.What if it concerns a dilapidated building?

There are many instances where the construction of a building begins at the boundary with a neighboring property, but the necessary preparations for the foundation have not been made to ensure a solid construction (e.g., the necessary supports have not been placed in the ground). In this case, the owner of the neighboring property is protected from the possible collapse of the structure, which could lead to the complete destruction (and possibly) of their own property. Thus, they can demand that their neighbor take the necessary measures for the construction of the building (the culpability of both sides does not matter here); otherwise, they may undertake such measures themselves if they have an urgent character, without their action being considered initially illegal. Let us not forget that the law establishes objective liability for the owner/possessor of a building or construction that has collapsed and caused damage to another (they are primarily liable for compensation to the third party unless they prove that they were not at fault and that all due diligence rules were followed).

5.My property is landlocked (it does not have access to a road). Is there a solution?

According to the provisions of neighbor law, if a property lacks the necessary access to the road (without the owner’s fault) and it is necessary to pass through a neighboring property, the owner of the landlocked property has a claim against their neighbor for granting access to the road. Initially, this refers only to access to a public/shared road and only on the condition that the owner of the landlocked property offers reasonable compensation to the one granting the access (which should cover at least the expenses for constructing the access, as well as any potential decrease in the value of the property that grants the access).

In addition to this, four other elements are necessary for the establishment of access:

• A final court decision must be issued (that is, a decision that cannot be challenged by appeal or by objection to default judgment) stating the establishment of access for the respective property in favor of another.
• The decision must be recorded (at the corresponding cost) in the relevant land registry/cadastre where it operates (mainly for publicity reasons and for the knowledge of third parties).
• The claim for granting access is not only held by the owner of the landlocked property but also by other individuals (such as the usufructuary, the possessor, and in the case of co-ownership, each co-owner for their respective share of the property).
• The owner of the property who granted the access may request its abolition if the access becomes obsolete (even before the passage of 20 years, which is the rule).

6.To what extent must I tolerate repairs on a neighboring property?

Let’s assume that a building is being constructed on the adjacent plot (or renovations are taking place in the apartment above) and that the workers need to pass through my property to carry out the work (there may be no other way of access). The law states that I must tolerate the disturbances caused during the execution of the aforementioned works under two conditions:

• My use of the property is not excessively hindered by these works (e.g., access to and from it is not difficult).
• My neighbor has compensated for the temporary hindrance of use or has provided some security for it (e.g., they gave me an item as collateral in case our agreement is not upheld).
• The neighbor’s right is not exercised abusively (e.g., not during extreme time limits, within quiet hours, using my property when there is a better and less burdensome way).

7.What happens with property boundaries?How is regulation done?

The regulation here is applied incrementally, so we will try to present it in that manner:

• When the boundaries between two properties need construction/repair to be restored, each owner has the right (and the other has the corresponding obligation) to attempt to construct the boundaries of their properties with shared expenses.
• In the case where the boundaries of the properties are disputed, the owners can request the court to resolve them. It is important to note here that if the boundaries are so indistinct (almost nonexistent) the court will divide the disputed area into equal parts, and each owner will receive one of them.
• If the two properties are separated by a strip of land, a path, or another type of road through which they communicate, each owner has the right to use this passage provided that it does not disrupt the passage of the other. It is also worth noting that the costs in the case of construction/repair are equally borne by both owners, and this passage of land (regardless of its form) requires the decision of both (or more, if applicable) owners to change its use, abolish it, etc.

8.And regarding rainwater?

For this matter, reference is made to Articles 1024-1025 of the Civil Code, which stipulate:

• The owner of a property (urban or agricultural) that is lower than its neighboring property is obliged to accept waters (mainly natural, e.g., rainwater) that come from the higher property (provided that there is no human construction intervening).
• If a property has an issue, e.g., with its roof, and this way water is transferred to the neighboring house, then the owner of the defective property is obliged to repair their construction (by adding drainage for the water) with the main goal of preventing water from flowing into the neighboring property.
• If the owner of the property discovers that there is a source of water/well on it or creates one, they are obliged not to waste all the available water in the area and in any case to ensure that it is sufficient for the residents of the local community (thus, the owner does not have such an obligation if there is sufficient water in the area through other means or if it is a city where no problem arises).

9.Is there a well on my property/the neighboring property?Are there claims created?

Although specific laws have been issued today that regulate this matter more clearly (which will be a separate subject of analysis), it is worth examining the general framework in this case. Thus, it is defined that the owner of the property where there is a spring/well is obliged to supply water to the neighboring property under certain conditions:

• The water in the neighboring property is insufficient for all household (note: not professional) needs (such as washing clothes, watering the yard, etc.).
• The extent to which the neighbor can procure water from elsewhere (if this is possible without significant expense for them, then I am not obliged to grant it, but this is judged separately on a case-by-case basis).
• I must not deprive myself of the water necessary for my (basic and non-basic) needs.
• If I eventually provide water to the neighboring property, the neighbor must compensate me for this provision.

10.How do I exercise my claims?Until when do they not expire?

If one carefully observes the provisions of Articles 1003-1032, they will understand that for every right of the owner of the neighboring property, there corresponds an obligation of the property being granted (in any form). Therefore, if one of the two parties seeks judicial protection, they can simply claim through an extrajudicial notice or lawsuit the adherence to this obligation (this operates only between the two parties, not against everyone).

• Alongside the above possibility, the owner of the property and its possessor (but not a simple occupant, as their protection is not justified) have the right to file a negative lawsuit (seeking the cessation of illegal infringement occurring on the property, omission of such in the future, and possibly a claim for damages).
• They can also file a lawsuit for disturbance of possession (this is equivalent to the negative lawsuit, but it is filed by the possessor and not the owner; for example, a student renting an apartment that does not belong to them will likely choose this type of lawsuit because it is the only way they are legitimized to exercise their claim).
• As the law itself stipulates, claims arising from neighboring law are not subject to a statute of limitations. This regulation is particularly important because there is no risk of losing a short deadline and ultimately the cancellation of the claim. However, it is another matter that if the claim is exercised very late and has created the impression on the other side that it will not be exercised (e.g., a sudden claim for the provision of access while the owner of the property has been using another equally suitable road for 19 years), it will be considered as a weakening of the right. Thus, the right, although not expired, will practically be unexercisable.

Next to the client and his needs.

Athina Kontogianni-Lawyer

The above does not constitute legal advice, and no responsibility is assumed for it. For more information, please contact us.

1.What is the main characteristic of a general partnership?

Given that this is a fundamental type of company used in transactions, the law clearly defines the purpose and operation of the general partnership to avoid misunderstandings. Specifically, a general partnership is a company for which the partners are jointly and severally liable for its debts to its creditors.

This means that the company’s creditors can directly pursue the partners of the general partnership for the payment of any debt/obligation that the company incurs through its actions. Additionally, the partners of the general partnership are personally liable for the company’s debts, and they cannot limit their liability through an internal agreement—such an agreement will only apply among the partners for their internal relations and cannot be proposed to third parties.

At the same time, the general partnership has its own legal personality. This means that the company has its own assets, which are formed from the items and monetary amounts contributed by the partners and the profits it earns from its market activities. Furthermore, based on this, the company can operate and transact in its own name (and not necessarily in the name of a partner), which provides it with tax advantages that indirectly serve the needs of the partners.

2.Who can be partners in a general partnership?

As mentioned above, a characteristic of the general partnership is the personal and joint liability of its partners for the company’s debts—all partners in the general partnership are liable in the same manner, and therefore there cannot be a partner who is liable in a different way. However, for new partners to enter an existing general partnership, an amendment to the partnership agreement must be made, and the entry of the new partner must be published in the General Commercial Registry (ΓΕΜΗ).

Initially, the partners vote unanimously for the entry of a new partner into the general partnership. Alternatively, if they have agreed on a majority decision-making method, a simple majority of the number of partners is sufficient to approve the entry of the new partner into the general partnership and to amend the partnership agreement accordingly.

It should be noted that a partner entering a general partnership that is already operating will be directly and personally liable for the company’s debts that existed before their entry—long before the partner arrived, who presumably was unaware of them. Additionally, if the entry of the new partner has not been registered in the General Commercial Registry, then the entry is considered defective and does not have any legal effect. An exception is the case where the new partner acted clearly in the company’s name before the public and justifiably created the impression that they are a regular partner of the general partnership without legal issues.

3.What process can be followed to establish such a company today?

To establish a general partnership today, the founders of the company must prepare a statute in advance, that is, the partnership agreement, which outlines the essential elements of the company such as its name, registered office, purpose, and the initial managers of the company, etc. The above can be done through a private document as well as through a notarial document, especially in cases where a partner is contributing real estate to the company.

Next, the partners must ensure that the partnership agreement is registered on the General Commercial Registry (ΓΕΜΗ) website, where a new file for the company will be created. This file will register every new change regarding the company, primarily the amendments to the partnership agreement made by the partners. Upon successful registration of all the necessary details of the company in ΓΕΜΗ, it acquires legal personality and can commence its transactions with the public.

Alternatively, the (future) partners can use the “One-Stop Service,” that is, they can use the ready-made statute provided to them and submit it directly to the ΓΕΜΗ service, which will handle all procedural matters for the establishment of the company, after paying the prescribed fees and charges stipulated by law. Certified notaries follow the same procedure, and founders of the company can approach them to complete the company’s establishment process.

4.Can a general partnership later be transformed into another type of company?

At this point, it should be emphasized that the transformation of a general partnership into another type of company results in the company in its new form continuing to be liable for all legal/economic relationships it created as a general partnership before the transformation. Otherwise, a general partnership can:

• Merge with another company either by absorbing the latter or by creating a new company that will include both the former general partnership and the other company. To accomplish this, a merger plan and detailed reports must be prepared, and there must also be a relevant decision by the partners of the general partnership with the majority stipulated in the company’s statutes.
• Split into other smaller companies, that is, multiple companies can acquire certain assets of the former general partnership to integrate them into their own company. Simultaneously, there is the possibility of establishing a new company that will receive certain assets of the former general partnership, while the partners of the former general partnership also receive some compensation or shares in the company’s assets.
• Transform into another legal form of company (e.g., into a Corporation/LLC/Sole Proprietorship/Partnership). However, for the transformation to occur, the establishment procedure stipulated for the new company must be followed, and partners who disagree with the transformation of the company have the right to withdraw from the company after receiving the value of their partnership, that is, what they contributed to the company during their time there.
• If the general partnership transforms into another company, it continues to be liable for the company’s debts incurred while it was a general partnership. Furthermore, partners who will take over the new company shares (especially if it becomes capital-intensive) must provide their consent to the company’s transformation; otherwise, it cannot be legally carried out.

5.Do the partners have rights against the general partnership/other partners?

Of course, partners acquire rights against the company as well as towards the other partners with whom they collaborate to achieve the company’s purpose. More specifically, the partners of the general partnership have the right to:

• File a corporate lawsuit, meaning a lawsuit in the name of the company against any partner who fails to fulfill their obligations to the general partnership/ systematically violates their obligations and behaves unlawfully towards their partners.
• Vote at partners’ meetings where critical decisions for the future of the company are made. Here, partners must generally vote themselves and not unjustifiably obstruct the decision-making process that serves the corporate interest.
• Be informed about the progress of the company’s affairs and inspect the company’s books whenever they wish (as long as it is feasible).
• Have a share in the company’s profits, which is calculated based on the size of their company shares (representing a fraction of the company’s profits). The company’s profits are typically calculated annually, but they can also be calculated for different time periods by agreement among the partners.
• Receive a share from the liquidation proceeds, that is, from the company’s remaining assets after its dissolution and at the stage where all corporate debts and obligations to third parties (such as the public, tax authorities, etc.) have been paid.
• Temporarily receive cash amounts from the company’s assets to cover their living expenses. These amounts are calculated over shorter time intervals (every six months/three months) and can later be offset against the amount the partners would receive from the company’s annual profits.
• Participate in the management of the company, representing it legally and extrajudicially against third parties, thus creating rights and obligations in the name and on behalf of the company. We will examine this issue in detail below.

6.What applies regarding their obligations?

In the relationship between the partners and the company, alongside rights, there are also significant obligations that the partners must adhere to in order to avoid facing legal consequences. Regarding the obligations of the partners, they must:

• Pay their contributions to the company, meaning any monetary or non-monetary contributions (including their labor) that they agreed to provide to the company. In the case of a contribution of real estate, the notarial formalities must also be observed as we know.
• Participate in the management of the company, meaning they should represent the company in transactions whenever requested by the other partners, as well as provide their consent for actions that are beneficial for the company and increase its profits.
• Share in the company’s losses, meaning they should cover the difference between the liabilities and assets of the company that arises annually. It is not excluded that the partners’ profits may be offset against the amount they must contribute to cover the losses.
• Maintain confidentiality regarding the company’s secrets, meaning its business strategies and any products of industrial property that it has created (e.g., trademarks/inventions, etc.), and not disclose them to third parties.
• Not compete with the company in its business activities—meaning they should not establish a parallel business with the same/similar purpose as that of the company while they remain partners and for some time after their departure from the company (this is also a matter of agreement between the parties).
• Act with honesty and integrity towards the company and the other partners—not to act in a way that promotes their own interests at the expense of the company’s interests (particularly by embezzling money from accounts, entering into contracts with unfavorable terms on behalf of the company).

7.When does a partner bind the general partnership with respect to third parties with whom they transact?

Firstly, the partners have the option, upon establishing the general partnership, to appoint the company’s managers simultaneously with the drafting of the statute. Thus, the latter will be responsible for managing the company’s affairs and representing it to third parties. The law states that if no managers are appointed in the statute, then all partners of the general partnership have the right to participate in the management and represent the company.

Each partner has the right to oppose a decision and, consequently, may not approve an act of representation that would create liability for the company towards third parties. However, the third party transacting with the company’s representative must be aware of the partner’s opposition or must not ignore it when they could have known about it. Otherwise, if they are not aware of the opposition, the company is legally represented by the partner, and thus the company will be bound by the actions of its partner towards the third party.

Moreover, the acts of representation of the company must contribute to the achievement of the corporate purpose and should not be unrelated to it or serve the individual interests of the partners. Therefore, if the third party that intends to transact with the general partnership through its representative realizes that the act of representation is unrelated to the corporate purpose, then the general partnership will not be bound towards them because the latter could easily discern that the act of representation was entirely unrelated to the purpose of the general partnership.

8.Can I transfer my partner status in a general partnership to another person?

To anticipate changes in the individuals participating as partners in a general partnership, the law has provided for the possibility of transferring the partnership status to another person. This can be done either by agreement among all partners and the new partner or through the appointment of the new partner in the general partnership via a will. If the partner of the general partnership did not regulate their inheritance succession through a will, then each heir will acquire a right to the partnership status of the deceased as a joint ownership.

In the case of an heir, the latter, after the death of the deceased, may request to remain as a partner in the general partnership, provided that they will take the position of a limited partner—the company will necessarily have to be transformed into a limited partnership with all the consequences we discussed earlier. The rule also applies that the new partner entering the company will be liable for previous debts that existed before their entry into the general partnership and cannot limit their liability in any way.

Otherwise, the new partner in the general partnership has exactly the same rights and obligations that the previous partner who transferred the partnership status had. They may also establish a pledge on the partnership status to receive the percentage corresponding to the partner from the company’s profits. However, the partnership agreement must also be amended so that any changes made are published in the General Commercial Registry (ΓΕΜΗ) to inform third parties transacting with the company.

9.When and for what reasons is the general partnership dissolved by law?

The law has provided certain reasons that, if they occur, lead to the dissolution of the general partnership for the future—thus, for as long as the company operated, the obligations it created through its transactions will remain valid. Specifically, if the agreed/defined period for which the company would operate passes, then it may be dissolved. An exception exists if the partners continue the company’s operation normally after this time period, in which case the company is considered to operate indefinitely.

The general partnership may also be dissolved by a relevant decision of the partners, which requires unanimity of the partners to be valid. For the company to be validly dissolved, it is also necessary to register the specific decision of the partners in the company’s record at the General Commercial Registry. The general partnership is also dissolved if the bankruptcy of the company itself is declared by a court ruling, indicating that it can no longer meet the overdue debts owed to its creditors. Furthermore, the bankruptcy of the general partnership does not simultaneously signify the bankruptcy of its general partners (they can file for bankruptcy separately).

Finally, an important reason leading to the dissolution of a general partnership is a relevant court decision issued upon the application of even one partner. In the partner’s application, they must include a significant reason that objectively justifies the dissolution of the company (e.g., a bad atmosphere and inability to cooperate among the partners). For this court ruling to be issued, the court must determine that there indeed exists a significant reason justifying the dissolution of the general partnership, thus validating the claims made in the partner’s application.

10.What is the main difference between a general partnership and a limited partnership?

When discussing the differences between a general partnership and a limited partnership, the key point where changes occur is the presence of at least one limited partner within the company. The limited partner is not legally responsible for the company’s debts to third parties that arise from the representation of the latter, as previously discussed. However, if the limited partner has not yet paid the contribution owed to the company, they will be liable for the company’s debts to third parties but only up to the amount of the contribution they owe to the company.

It matters whether the limited partner chooses to place their name next to the company’s name so that it appears in transactions. This is because, according to the law, if the name of the limited partner appears alongside the company’s name in transactions, the limited partner will be jointly and personally liable for the company’s debts to third parties—as if they were a general partner. Conversely, if the third party with whom the company transacted knew or could have known that this was a limited partner, then the latter would not be liable for the company’s debts.

Lastly, the limited partner cannot, in principle, participate in the management of the company or in its representation unless expressly permitted by the other partners. However, they may inspect the company’s financial records, be informed about the company’s affairs, and are obliged to participate in the company’s losses (as are the other partners) up to the amount of the contribution they have made to the company unless they agree with the other partners to cover the company’s losses for a greater amount.

Next to the client and his needs.

Athina Kontogianni-Lawyer

The above does not constitute legal advice, and no responsibility is assumed for it. For more information, please contact us.