The deposit (εγγύηση ενοικίου) is the most disputed sum in any Greek tenancy. Here is what the law actually says in 2026: how much is normal, what the landlord may deduct, what counts as wear and tear, and how to get the money back — with the documentation that decides most disputes before they ever reach a court.
How much deposit is normal — and is there a legal limit?
It is universal practice in Greek residential leases for the tenant to pay a security deposit alongside the first month's rent, typically one or two months' rent. Unlike many EU countries, Greece has no statutory cap on residential deposits — the amount is freely agreed under the general contractual freedom of the Civil Code. In the Athens market, two months is the norm for unfurnished apartments; anything materially above that is unusual and worth negotiating down, since the general Civil Code protections against abusive terms are a tenant's only backstop. The agreed amount is entered in the dedicated deposit field of the landlord's electronic lease declaration to AADE (the Δήλωση Πληροφοριακών Στοιχείων Μίσθωσης), which is also the tenant's official proof that a deposit was paid.
What does the deposit legally secure?
The deposit is a guarantee for the tenant's obligations under the lease. In practice it covers three things:
- Unpaid rent left owing at the end of the tenancy.
- Unpaid utilities and common charges (κοινόχρηστα) attributable to the tenant.
- Damage beyond normal wear and tear — anything that exceeds the deterioration expected from ordinary, agreed use.
Everything else must come back to the tenant. Greek law does not require the deposit to sit in a separate escrow account — it is simply held by the landlord — which is exactly why the paperwork around handover matters so much.
Damage or wear and tear? The distinction that decides disputes
Under the Civil Code the tenant must return the property in the condition received, but is not liable for wear or changes resulting from the agreed use (Articles 592 and 599). Faded paint after a three-year tenancy, worn floor varnish, loose hinges, minor scuffs — that is normal wear, and no deduction is justified. A broken door, cracked sanitaryware, large holes in walls, or a neglected mould problem the tenant never reported — that is damage. Critically, the burden of proof lies with the landlord: to withhold anything, they need evidence of the property's condition at move-in and move-out, plus invoices or quotes for actual repair costs, not round numbers.
When and how must the deposit be returned?
Greek law sets no fixed statutory deadline for returning the deposit. It becomes due within a reasonable time after the tenant hands back the keys, once the final utility bills are cleared and the property has been inspected. In practice, a well-run handover looks like this: joint inspection against the move-in condition report, final meter readings, settlement of any documented deductions with receipts, and return of the balance by bank transfer within a few weeks. If the landlord makes deductions, they should provide an itemised accounting — vague claims of "cleaning and repairs" without documents do not survive a court's scrutiny.
Deposit scenarios: who keeps what
| Scenario | Outcome |
|---|---|
| Tenant leaves at term end, no damage, all bills paid | Full deposit returned to the tenant |
| Final electricity/water/common charges unpaid | Landlord deducts the documented amounts, returns the balance |
| Damage beyond normal wear (broken fittings, wall holes) | Landlord deducts actual repair costs backed by invoices/photos |
| Faded paint, worn floors after years of normal use | Normal wear and tear — no deduction justified |
| Tenant skips the last month's rent, telling the landlord to "use the deposit" | Not permitted — the rent is still owed and the landlord can seek a payment order; the deposit remains security |
| Tenant abandons the lease early with rent owing | Landlord may apply the deposit to amounts due and claim any shortfall |
Can the deposit be used as the last month's rent?
No — this is the most common misunderstanding in Greek tenancies. The deposit is security, not prepaid rent, and unilaterally offsetting it against the final month is legally prohibited: the landlord can still issue a payment order for the missing rent even while holding the deposit, and the tenant loses the moral high ground for the handover negotiation. The only safe version is an explicit written agreement with the landlord to apply the deposit to the final rent — some landlords accept this when the property is visibly in good condition.
What should landlords and tenants document?
Almost every deposit dispute is won or lost on move-in evidence. Both sides should keep:
- A signed handover protocol (condition report) at move-in and move-out, describing each room, fittings and defects.
- Dated photos or video of every room, appliances and known flaws.
- Meter readings (electricity, water, gas) at both handovers.
- Receipts for the deposit itself and for any repairs deducted.
- The AADE lease declaration showing the declared deposit amount.
This is standard operating procedure for professionally managed properties — at mamaXO, every managed tenancy in Athens starts and ends with a photo-documented condition report signed by both parties, precisely so the deposit settlement is a formality rather than a fight.
Is the deposit taxable income for the landlord?
Rent is taxable income for the landlord at Greece's progressive rental-income rates of 15% to 45%. The deposit is different in nature: it is a refundable guarantee, declared in the AADE lease declaration's deposit field but held for return to the tenant, not received as rent. It only takes on the character of income if it is ultimately kept — for example, applied to unpaid rent, which is itself taxable rental income. Landlords in doubt about a forfeited deposit should confirm the treatment with their accountant, as AADE has no dedicated published guidance in English.
Are there alternatives? Rent-guarantee insurance
A growing alternative or complement to large deposits is rent-guarantee insurance. In Greece, rentalinsurance.gr (backed by insurer Helvetia) offers policies covering landlords against unpaid rent, with the provider citing a 23% rise in unpaid rent in 2024. For landlords this shifts arrears risk to an insurer; for tenants it can be an argument for a lower cash deposit. It does not, however, replace the deposit's role in covering damage — a condition report is still essential.
What if the landlord simply refuses to return the deposit?
Escalate in stages. First, a written demand (email or registered letter) with the condition report and photos attached, requesting return within a set period. If that fails, an out-of-court statement (εξώδικο) via a lawyer often unlocks payment. The final step is court: deposit claims up to €5,000 fall under the small-claims procedure at the District Civil Court (Ειρηνοδικείο), a simplified, mandatory track where tenants can file in person and represent themselves, evidence rules are relaxed, and the judgment is not subject to ordinary appeal. With a signed move-in report and dated photos, these are typically straightforward cases.
