New measures to prevent property fragmentation

Law 5303/2026, published in May, replaces Book Five of the Civil Code and seeks to bring inheritance law into line with contemporary family and economic circumstances. The principal provisions apply to inheritance relationships involving persons who die on or after 16 September 2026. However, the new distribution procedure will apply after that date even to earlier estates, provided that no legal action for distribution has already been brought.

For the real estate market, the most significant aspect of the reform is the attempt to address one of the most persistent problems affecting property ownership in Greece: the continuous fragmentation of properties into small undivided ownership shares.

An apartment, plot of land, or agricultural property may currently be owned by several heirs, none of whom holds an independent physical portion of the property. With each successive inheritance, the number of co-owners may increase, making the sale, development, or even basic management of the asset increasingly difficult.

The Reserved Share Becomes a Monetary Claim

A key change concerns the reform of the reserved share. Under the new Article 1820 of the Civil Code, descendants, parents, and the surviving spouse who would be called as intestate heirs retain an entitlement to a reserved share equal to half the value of their intestate inheritance share.

In practice, this change may limit the creation of new forms of co-ownership. Rather than a property necessarily being fragmented among several beneficiaries, it may remain in the ownership of a single heir, while the beneficiary of the reserved share acquires a monetary claim. To secure this claim, the law also grants the beneficiary of the reserved share the right to obtain a mortgage over the real estate forming part of the estate.

Inheritance Can Be Planned Before Death

A second major development is the introduction of inheritance agreements upon death, which may be entered into as of 16 September.

For the first time, an individual may, while still alive, enter into a notarial agreement under which they appoint an heir or regulate other matters concerning their future succession. The agreement must be executed before a notary, with the personal presence of the parties.

This mechanism is particularly significant for families with substantial real estate holdings, family businesses, or complex family structures, as it allows for greater planning before assets are transferred to the next generation.

The Hellenic Property Owners Federation (POMIDA), however, points out that the effectiveness of the new mechanism will also depend on its tax treatment, calling for inheritance agreements to receive tax treatment equivalent to that applicable to parental gifts.

From Ownership Shares to Real Economic Value

The new framework is particularly significant for properties held in undivided co-ownership. Distribution is not merely a mathematical matter. A 1,200-square-metre plot owned in equal one-third shares by three heirs does not automatically mean that it can be divided into three independent 400-square-metre plots.

Requirements concerning minimum plot size, buildability, frontage onto a public road, land-use regulations, unauthorised structures, and Land Registry records may make an apparently equal division either impossible or economically destructive.

For this reason, technical due diligence assumes a critical role before any agreement is reached. Engineers, lawyers, and notaries are effectively required to assess the property before proceeding with its distribution, in order to establish what actually exists, what can legally be divided, and which solution preserves the greatest proportion of the property’s value.

The issue is particularly complex in relation to properties located outside approved urban plans, unauthorised structures, and cases in which different co-owners have for many years been using different portions of the same property. The actual use of a particular portion does not, in itself, create separate ownership of that portion.

Ultimately, the reform seeks to shift the focus away from the mechanical division of inherited property and towards the preservation of its economic value.

This may have broader implications for the Greek real estate market. Thousands of homes, plots of land, and agricultural properties currently remain outside the market because they have multiple co-owners, unresolved title issues, planning or zoning problems, or an inability among heirs to reach an agreement.

The new law does not automatically resolve these problems. It does, however, provide additional tools to help ensure that the next generation does not create yet more small ownership shares in the same property.