Can the landlord raise the rent as much as they want?
Conditional — and the most misunderstood point. The 3% cap applies only to commercial/professional leases, not residential, and has been extended to 31.12.2026 (Law 5255/2025, Gazette A' 219/28.11.2025): on an existing commercial lease the increase may not exceed 3% over the 2025 rent. For residential there is no 3% cap; during the protected three-year period the adjustment is capped at 75% of CPI (inflation). New leases (residential or commercial) are freely negotiated, with no cap. The idea of a general residential "rent range" is a draft, not in force. In short: 3% for commercial only, not residential.
📋 The rules
- 3% cap: commercial leases only (until 31.12.2026)
- Residential in the 3-year period: adjustment up to 75% of CPI
- New leases: freely negotiated
- No general residential cap in force
- Residential "rent range": a draft, not law
🔓 Exceptions
- New lease: exempt from any cap
- Commercial: the parties may agree a higher increase
- Cap exclusions: REITs, large malls, 100%-public companies
⚠️ Penalties & fines
There's no administrative fine: an increase above 3% on an existing commercial lease is simply unenforceable as to the excess — the tenant doesn't owe it. For residential, the adjustment follows the contract and the statutory limits (75% of inflation in the 3-year period); an excessive demand isn't binding. Beware the two most common myths: that "increases are everywhere capped at 3%" (commercial only) and that the law is "5255/2026" (it's Law 5255/2025, gazetted November 2025). To know your rights: check whether your lease is residential or commercial, whether it's new or existing, and review the contract's adjustment clause.
📎 Official sources
- Law 5255/2025 (Gazette A' 219/2025) — 3% cap extension →
- AADE — property leases →
- POMIDA — rent information →
❓ Frequently asked
Does a 3% cap apply to my home's rent?
No. The 3% cap applies only to commercial/professional leases and has been extended to 31.12.2026. Residential housing has no equivalent general 3% cap — this is the most widespread myth about rents.
How much can residential rent rise?
On an existing primary-residence lease, during the protected three-year period, the adjustment is capped at 75% of the annual rise in the Consumer Price Index. The exact increase also depends on the adjustment clause you agreed in the lease.
What about a new lease?
New leases, whether residential or commercial, are freely negotiated and not subject to any cap. Landlord and tenant freely agree the initial rent; the limits concern adjustments within existing contracts.
Which is the correct law for the 3% cap?
The extension of the 3% cap for commercial rents for 2026 was made by Law 5255/2025 (Gazette A' 219/28.11.2025), not "5255/2026". It continues a measure that is renewed each year for professional leases.
What if they demand a bigger increase?
On a commercial lease, an increase above 3% is unenforceable as to the excess, so you don't owe it. For residential, an excessive demand beyond the contract and the law isn't binding. In a dispute, you can seek legal advice.
🔎 Common searches
What people search to land here:
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