Compulsory Expropriation in Greece – Legal Framework

Compulsory Expropriation in Greece – Legal Framework, Procedure and Property Owners’ Rights

Compulsory expropriation is an institution of Public Law, through which the State or another public authority deprives a private individual of property for reasons of public interest, provided that full compensation is paid in advance. It constitutes a serious interference with the right to property and, for this reason, it is strictly regulated by the Greek Constitution and special statutes.

1. Constitutional Basis

Compulsory expropriation is provided for in Article 17 of the Greek Constitution.
Pursuant to Article 17(2):

• Property is under the protection of the State.
  • No one may be deprived of their property except for public interest.
  • Full compensation must be paid in advance.

The compensation must be full and must correspond to the actual value of the property, in accordance with the Constitution and the Code of Compulsory Expropriations, based on the data taken into account by the competent court when determining the unit price/compensation.

2. Legislative Framework

The main statute governing the procedure is:

• The Code of Compulsory Expropriations of Real Estate (Law 2882/2001)

This law regulates:

• The declaration of expropriation
  • The determination of compensation
  • The payment and registration (transcription)

3. Conditions for a Lawful Compulsory Expropriation

For an expropriation to be lawful, the following conditions must be met cumulatively:

(a) Public interest
It must be demonstrated that the project serves the public interest (e.g. road works, schools, hospitals, infrastructure).

(b) Lawful declaration
The expropriation is declared by an administrative act published in the Government Gazette.

(c) Full compensation
The compensation must be full, i.e. it must cover the actual value of the property.
Without full compensation, ownership cannot be transferred.

4. Stages of the Procedure

Stage 1 – Declaration of Expropriation

An administrative act is issued specifying the property and the purpose of the expropriation.

Stage 2 – Provisional or Final Determination of Compensation

Compensation is determined judicially by the competent civil courts, in accordance with the provisions of the Code of Compulsory Expropriations (Law 2882/2001), at the stage of provisional determination and, if requested, at the stage of final determination.

The Court takes into account:

• The market value
  • The location and use of the property
  • Any buildings or crops

Stage 3 – Payment of Compensation

The compensation must be paid or deposited with the Consignment Deposits and Loans Fund.

Stage 4 – Registration (Transcription)

Following payment, the act is registered and ownership is transferred.

5. What does the compensation include?

The compensation may include, depending on the factual circumstances and the applicable legal framework:

• The value of the property (unit price/compensation)
  • The value of buildings/fixtures and appurtenances
  • Compensation for crops/appurtenances, where applicable
  • In the case of partial expropriation, compensation also for any decrease in value of the remaining property

6. When is the expropriation lifted?

According to the applicable framework (Law 2882/2001), the expropriation is automatically lifted if it is not completed within the statutory time limit, i.e. if payment or lawful deposit of the compensation does not take place (subject to the specific conditions, exceptions and procedures provided by law).

7. Property Owner’s Rights

The owner has the right:

• To challenge the amount of compensation
  • To submit an expert valuation
  • To exercise legal remedies
  • To claim default interest

Recourse to the courts is crucial in order to secure fair compensation.

8. Partial Expropriation

If part of a property is expropriated, the owner is also entitled to compensation for the reduction in value of the remaining part.
This is expressly provided for in the Code of Compulsory Expropriations.

9. Temporary Possession

In certain cases, mechanisms for early/temporary intervention or possession are provided, subject to special conditions and procedures laid down in Law 2882/2001 (and related provisions), which require a case-by-case legal assessment of the specific expropriation.

10. Relationship with European Law

Compulsory expropriation is also linked to Article 1 of the First Additional Protocol to the ECHR, which protects property.
Compensation must be reasonable and fair; otherwise, an application may be lodged with the European Court of Human Rights (ECtHR).

When is a compulsory expropriation completed (perfected)?

A compulsory expropriation is not completed merely by the court decision determining the compensation. It is completed only when payment or lawful deposit of the compensation takes place.

1. General rule

The expropriation is completed:

• By payment of the compensation to the beneficiary who has been judicially recognized or to the actual beneficiary; or
  • By deposit of the compensation with the Consignment Deposits and Loans Fund.

Deposit takes place when:

• The beneficiary does not appear,
  • There is a dispute as to who the beneficiary is, or
  • Other legal reasons exist.

In this case, a relevant notice is published in the Government Gazette stating that the compensation has been deposited with the Consignment Deposits and Loans Fund, in accordance with the specific provisions of Law 2882/2001 on the completion of the expropriation. With this publication, the expropriation is deemed to have been completed.

2. When the liable party is the State

If the compensation is owed by the Hellenic State, the expropriation is completed:

• By the issuance of a payment warrant in favor of the beneficiary, or
  • If no warrant is issued, by the issuance of a deposit certificate.

That is, completion occurs through the formal payment procedure of the State, even if the funds have not yet been collected by the owner.

3. When the liable party is a Local Government Authority (Municipality or Region)

If the compensation is owed by a Municipality or a Region, the expropriation is completed:

• By depositing the compensation with the Consignment Deposits and Loans Fund, and
  • By publishing a relevant announcement in the Government Gazette.

The publication certifies that:

• The compensation has been deposited,
  • The legal costs have been deposited,
  • The lawyers’ fees have been deposited.

With this publication, the transfer of ownership is deemed to be completed.

4. Special case: Unknown or improperly summoned owner

There is a special case:

If the Court dismisses the hearing for the initial determination of compensation because:

• The owner was unknown, or
  • The owner was not properly summoned,

then the expropriation may be completed in a different manner.

Specifically:

• The compensation already determined for other similar properties of the same expropriation is paid or deposited.
  • The affected owner must file an application within ten (10) years from the decision determining compensation.
  • The owner must also have been judicially recognized as the beneficiary.

If these conditions are met, the expropriation is deemed to have been completed.

What does “completion” of the expropriation mean in practice?

Upon completion:

• Ownership of the property is transferred to the expropriating authority.
  • The owner loses the real right to the property.
  • A claim for payment of compensation arises.

Without payment or lawful deposit of the compensation, the expropriation is not completed and ownership is not transferred.

Frequently Asked Questions (FAQ)

1. Can the State take my property without compensation?
   No. Compensation is a constitutional prerequisite.
2. How is the value determined?
   Based on the market value at the time of the court hearing.
3. Can I claim higher compensation?
   Yes, by filing a claim and submitting supporting evidence.
4. What if I am not paid?
   If the statutory period elapses, the expropriation is lifted.
5. Is interest payable?
   Yes, statutory interest/surcharges may be due in case of delay, in accordance with the specific rules of Law 2882/2001.
6. What happens in a partial expropriation?
   The reduction in value of the remaining property is also compensated.
7. Can I remain in the property?
   Until the compensation is paid.
8. Which court has jurisdiction?
   The competent civil courts, in accordance with the specific provisions of Law 2882/2001 (depending on the stage of the procedure).
9. Can an expropriation be annulled?
   Yes, if the statutory conditions are not met.
10. Is a lawyer required?
    In practice, yes, because the procedure is complex and requires specialized legal expertise.

Conclusion

Compulsory expropriation is a lawful but exceptional measure restricting property rights. The Greek Constitution and Law 2882/2001 establish strict safeguards to ensure that the owner receives full and fair compensation.

Timely legal guidance is crucial for safeguarding the rights of the affected owner and for claiming the true value of the property.

This article is for informational purposes only and does not constitute legal advice. Each case requires an individual assessment, based on the specific facts and the applicable legal framework. For specialized advice, please contact our law firm.