Greece’s 3% cap on commercial rent increases in 2026: who it covers
Last updated: · Sources · Adapted in English from our Greek guide. Read the Greek version
If you let commercial property on a lease that is already running, a rent increase in 2026 has a ceiling: 3% of the 2025 rent. The cap applies from 1 January 2026 to 31 December 2026, even if the clause in the lease gives a higher percentage.
This guide shows which leases the cap covers, which it leaves out, which landlords are exempt and how much the rent changes in a worked example.
What the cap sets
On existing commercial leases under Presidential Decree 34/1995, a rent increase from 1 January 2026 to 31 December 2026 may not exceed 3% of the 2025 rent. The cap applies even if market rents rose further. The legal basis is Article 59 of Law 5255/2025 and Article 96 of Law 5007/2022.
3% is a ceiling, not a required increase. If the clause in the lease gives a smaller increase, the clause applies.
Which leases it covers
The cap applies when all three are true:
- The lease is commercial or professional and governed by Presidential Decree 34/1995.
- The lease already exists, meaning it wasn’t signed in 2026.
- The increase takes effect between 1 January 2026 and 31 December 2026.
The calculation starts from the 2025 rent, not the rent in the original lease. The same goes for a clause linked to the consumer price index: if the change the lease calls for exceeds 3%, the increase stops at 3%.
Homes and new leases
The cap doesn’t apply to residential leases. In 2026 there is no general state cap on residential rents. There, rent goes up only through an explicit rent review clause in the lease or a new agreement the tenant accepts.
Nor does it apply to a new commercial lease you sign in 2026. There, the rent is set freely.
Which landlords are exempt
Three kinds of landlord are not bound by the cap:
- Real estate investment companies (REICs) and companies majority-owned by alternative investment funds (AIFs).
- Operators of shopping centers with at least 15,000 m² of floor space.
- Companies wholly owned by the Greek state.
If you’re not sure whether you fall into one of these, check with a lawyer or an accountant before you apply an increase above 3%.
A 5% clause, a 3% cap
A commercial lease with rent of €1,500 a month in 2025. The lease provides for a 5% increase each year.
- Under the lease clause: €1,500 × 5% = €75, so €1,575.
- With the cap: €1,500 × 3% = €45, so up to €1,545.
- Difference: €1,575 − €1,545 = €30 a month, or €360 over twelve months.
What the landlord does
- Read the rent review clause: a percentage or an index, and the month it applies.
- Work out the rent under the clause and compare it with the 2025 rent × 1.03. Keep the lower of the two.
- The rent increase calculator does the comparison for you and shows the rent year by year, with the cap in 2026.
- Charge the right amount. The Digital Transaction Duty of 3.6% is worked out on the rent: on €1,545 it is €55.62 a month, instead of €56.70 on €1,575. It isn’t owed if the lease has lawfully opted into VAT.
- If the clause is worded unclearly or you are considering an exemption, check with a lawyer or an accountant before you send the notice to the tenant.
Legal basis and sources
- Cap of 3% on the 2025 rent for increases on existing commercial leases (Presidential Decree 34/1995), from 1 January 2026 to 31 December 2026 · Article 59 of Law 5255/2025 · Article 96 of Law 5007/2022.
- Outside the cap: residential leases, new leases signed in 2026 and landlords that are real estate investment companies, companies majority-owned by alternative investment funds, shopping center operators of at least 15,000 m² or companies wholly owned by the state (same provisions).
- Digital Transaction Duty of 3.6% on the rent of a commercial lease, replacing stamp duty at the same rate · Article 6 of Law 5177/2025.
- Rent increases linked to the consumer price index: the twelve-month change or 75% of it, as the lease specifies (ELSTAT monthly release).
The capped rent, net
In the rental yield calculator you enter the new rent and see what is left after tax, ENFIA and costs. The PROPERWISE dashboard works it out the same way.
See what you keepWith your own figures, no sign-up.
What people ask about the cap
Does it apply to residential leases?+
No. The cap applies only to existing commercial leases under Presidential Decree 34/1995. In 2026 there is no general state cap on residential rents; there, an increase needs an explicit rent review clause in the lease or a new agreement the tenant accepts.
What if my lease says 5%?+
In 2026 the increase cannot exceed 3% of the 2025 rent. With rent of €1,500, the new rent goes up to €1,545, not €1,575. If the clause gives less than 3%, the clause applies.
Does it apply to a lease I sign in 2026?+
No. On a new lease signed in 2026, the rent is set freely.
Which landlords are exempt?+
Real estate investment companies (REICs) and companies majority-owned by alternative investment funds (AIFs). Operators of shopping centers with at least 15,000 m² of floor space. Companies wholly owned by the Greek state. If you’re not sure whether you fall into one of these, check with a lawyer or an accountant.
What happens in 2027?+
The rule sets the cap only for 1 January 2026 to 31 December 2026. For the 2027 increase, check with a lawyer or an accountant what will apply then.
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