Greece has enacted the most significant reform of its inheritance law in more than eighty years through the new legislation entitled “Reform of inheritance law and related provisions”. The reform replaces the Fifth Book of the Greek Civil Code, the foundation of Greek succession law, and marks the first comprehensive overhaul of the framework since the Greek Civil Code entered into force in 1946.
The reform introduces far-reaching amendments that modernise the succession law framework and align it with contemporary economic, social, and demographic realities. As described by the Deputy Minister of Justice during the parliamentary proceedings, this marks a historic moment for Greek civil law, touching upon every Greek family and every citizen who wishes to ensure that their last wishes will be respected.
These changes are particularly relevant for Greek nationals living in Greece or abroad, individuals who are tax resident in Greece, and anyone — regardless of nationality — who holds assets located in Greece. Now is the time to consider whether existing wills or succession structures remain fit for purpose.
The reform moves along four principal axes: reforming the majority of existing inheritance law provisions to reflect modern needs; introducing legal instruments, such as inheritance law contracts and advance waiver contracts, which are commonly used in other European civil law jurisdictions (e.g., Germany) but have to date remained outside the scope of the Greek inheritance law rules; resolving longstanding interpretative ambiguities that had emerged in case law; and abolishing outdated provisions that had fallen into disuse.
In this third newsletter in our series on the reform of Greek inheritance law, we summarise the key legislative developments introduced by the new law.
Retention of the 25-year rule
One of the most closely watched aspects of the reform was the proposed abolition of Article 21 of Law 1738/1987 — commonly known as the "25-year rule". For further background, please refer to our newsletter entitled “Greece reforms inheritance law #2 | Proposed abolition of the ‘25-year rule’ and reform of forced heirship”, available here. Although the initial proposal envisaged the repeal of this provision, it was ultimately decided that Article 21 would remain in force. As a result, existing wills and estate planning structures that rely on the 25-year rule- particularly in relation to the free disposition of foreign situated assets—remain unaffected.
Greek nationals who have resided abroad for at least 25 consecutive years will continue to benefit from the exemption from Greek forced heirship rules for property located outside Greece.
Endorsement and historic recognition of inheritance law contracts
The new law formally recognizes the legal concept of the inheritance contract, a legal instrument already existing in many EU countries' inheritance law systems, such as Germany.
Under the applicable new law, the future decedent may, by contract, appoint an heir, establish a fideicommissary substitution (καταπίστευμα) or a legacy, impose a charge, and choose the applicable law for their succession. The beneficiary may be the other contracting party or a third party, and multiple persons may dispose of their property by virtue of the same contract. The contract must be executed before a notary with the personal presence of the contracting parties.
Furthermore, the key dispositions of the inheritance contract are not freely or unilaterally revocable; the new regime contemplates specific statutory grounds that may affect the binding effect of the contract, including revocation for beneficiary misconduct, annulment for mistake, fraud or threat, the exercise of any statutory withdrawal right, and inheritance incapacity or unworthiness.
Also, the new law regulates the relationship between the inheritance contract and prior or subsequent wills or contracts: the contract may be amended or terminated only by a subsequent agreement between the same parties; a prior will is superseded only to the extent that it conflicts with the contract; and a subsequent will or contract with a different party does not take effect to the extent that it conflicts with an earlier inheritance contract.
Finally, the inheritance contract does not, in principle, restrict the freedom of the future decedent to dispose of their property inter vivos, unless otherwise agreed. However, if the decedent disposes of their property gratuitously to the detriment of the beneficiary, the beneficiary has the right to seek reversal of the gratuitous transaction.
Advance waiver contracts
Inheritance law contracts can be structured and take the specific form of an advance waiver contract, a notable innovation also introduced by virtue of the new law. Under the current regime, a contract by which one party waives in advance -that is, before the death of the other- any future inheritance right (whether arising by will, by intestacy, or as a forced heirship share) in the estate of the other contracting party, is void. The new law fundamentally departs from this prohibition.
Under new Article 1838, a person may, by contract, waive future rights in the estate of the other contracting party, whether those rights arise by law or by an existing disposition of last will. The waiver may be total or partial, with or without consideration. In practice, this enables a person to waive, among others: (a) their inheritance right as an heir under an existing will; (b) their inheritance right under an existing inheritance contract; (c) their right as an intestate heir; and (d) their right to the forced heirship share. The contract, which constitutes a special form of an inheritance law contract, must be concluded before a notary, whereas the general provisions applicable to inheritance law contracts apply equally to advance waiver contracts.
In essence, this legal instrument allows a future decedent, while still alive, to transfer property to their future forced heirs in exchange for the forced heirship share those heirs would otherwise be entitled to upon death, thereby allowing the decedent to subsequently dispose freely of the remaining estate by will or inheritance law contract. This development opens significant new possibilities for structured succession planning and is particularly relevant for families with complex estate structures or family businesses.
From a tax perspective, further guidance will be important. Τhe tax treatment of inheritance contracts and advance waiver contracts should be clarified, including whether inheritance tax rules apply, when filing deadlines begin, how contractually recognized debts are treated, and how any consideration paid under such arrangements should be taxed.
Intestate succession rights of the cohabiting partner
For the first time, the new law introduces -under strict conditions- a limited right of intestate succession for a person who permanently cohabited in a free union with the deceased. Under the new law, the cohabiting partner is placed in the fifth class of intestate succession. Specifically, the cohabiting partner who permanently lived with the deceased for at least three years before their death — or without any time restriction if the couple had common children — acquires: (a) the household items, provided no spouse is called to the succession; (b) the exclusive right of use of the principal residence for one year from the death of the deceased, again provided there is no surviving spouse; and (c) where no spouse or other relative of the deceased is called to the succession, the entire estate, subject to judicial certification of the relevant conditions.
This represents a particularly significant change to existing law, reflecting the social reality of modern family structures. A new procedural provision has also been introduced for the judicial certification of the inheritance rights of the cohabiting partner. Pending such certification, practical questions may arise as to the administration of the estate and the position of the cohabiting partner during the interim period.
Monetary nature of the forced heirship share
Under the new law, the forced heirship share undergoes a fundamental transformation: it is converted from a proprietary right into a monetary claim. Under the previous regime, the forced heirship share was of a proprietary nature, meaning that the forced heir became an automatic co-owner of the estate assets. This often led to forced co-ownership, difficulties in exploiting properties, and protracted disputes among co-heirs. Under the new regime, the forced heir no longer necessarily acquires the status of heir, but instead becomes a (privileged) creditor of the estate. The court retains the power, where circumstances so require, to order in-specie satisfaction of the claim through the transfer of specific estate assets.
This reconfiguration of the forced heirship share eliminates the previously forced and often dysfunctional co-ownership relationships, enhances flexibility in succession planning, and is expected to contribute to unlocking the economic potential of inherited property. At the same time, the new monetary nature of the claim may require careful planning to ensure that forced heirs’ claims are effectively protected, particularly where estate assets are encumbered or insufficient to satisfy competing claims.
Reduced claw-back period for donations to third parties
The new law reformulates the method of calculating the estate for forced heirship share purposes. The forced heirship share is calculated on the basis of the estate's value at death, after deducting debts and funeral expenses, with gratuitous transfers to forced heirs added back at the value they had at the time of transfer.
The key change is that the look-back period for donations to third parties (non-forced heirs) is shortened from ten (10) years to five (5) years before death. Accordingly, where the estate is insufficient to satisfy the forced heir's claim, the forced heir may pursue the donee only for donations made within the last five years — rather than ten years under the outgoing regime. The rationale is that donees should not remain exposed to claw-back claims long after the donation was made. To compensate, the limitation period for the forced heir's claim against the donee has been extended from two (2) to three (3) years after death.
Limitation of heir's liability for inheritance debts
The new law introduces a reversal of the system of heir's liability for inheritance debts. Under the previous regime, the heir was liable with their personal assets for the obligations of the estate, unless they took the affirmative step of accepting the inheritance with the benefit of inventory. Under new law, the default rule is inverted: the heir is not liable with their personal assets for the obligations of the estate. The heir becomes personally liable only if they expressly declare to the inheritance court that they will manage and dispose of the estate freely, or if certain statutory exceptions apply (e.g., unauthorized disposal of estate assets before judicial liquidation).
The prior system had created significant problems in practice, with heirs who, due to ignorance or inaction, ended up being liable for debts exceeding the value of the estate. The new regime is designed to separate the inheritance from the personal assets of the heir, so that, as a default, estate creditors should look primarily to the estate rather than to the heir’s personal assets. However, the operation of the new regime will require careful handling in practice, particularly before any judicial liquidation is ordered and where transactions involving estate assets require prior court permission or may affect estate creditors.
Changes to wills and enhanced safeguards for handwritten wills
The new law specifies the conditions under which a published handwritten will produces legal effects. Under the new provision, a handwritten will that was deposited for safekeeping by the testator with a notary produces its legal effects before being declared as the main will. However, where the handwritten will benefits exclusively persons outside of the first inheritance class of intestate heirs (descendants) or the spouse, or where the will is published more than two years after the death of the testator, it must be declared as the main will before it can produce legal effects.
This provision aims to strengthen legal certainty and limit the risks of abuse, forgery, or belated appearance of handwritten wills that had not been placed in the custody of a notary. In cases where validation is required, a handwriting expert opinion is ordered by the notary as part of the certification procedure.
Surviving spouse: increased intestate share
Under the new law, the position of the surviving spouse in intestate succession is enhanced. Where the surviving spouse concurs with one child, the spouse's intestate share increases from one-quarter (1/4) to one-third (1/3), resulting in a forced heirship share of one-sixth (1/6).
Additionally, the surviving spouse is now entitled to the exclusive use of the principal family residence for one year from the death of the deceased. The spouse may also elect, in lieu of their intestate share, to request from the inheritance court a right of usufruct over estate assets. The usufruct is extinguished upon the death of the spouse and is non-transferable. The court may also award ownership of the family residence exclusively to the surviving spouse, with an equalisation payment if the value of the residence exceeds the spouse’s inheritance share.
Entry into force and repealed provisions
The above provisions will apply to the inheritance relationships of deceased persons whose death occurs on 16 September 2026 or later. As of the same date, certain inheritance law provisions will be repealed, among which the provision that permitted the conclusion of valid contracts abroad, between persons about to marry — one of Greek nationality and the other of foreign nationality, both residing permanently abroad at the time of the contract — by which the foreign spouse waives, with or without consideration, for the period following the marriage, their inheritance rights in the estate of the Greek spouse.