Following our newsletter of 31 March 2026, we continue our analysis of the Draft Law reforming Greek inheritance law. In this second briefing, we focus on: (a) the abolition of Article 21 of Law 1738/1987 (the ‘25-year rule’) and its practical consequences, and (b) key changes to the Greek forced heirship framework.
The 25-year rule: Background
Under Article 21 of Law 1738/1987, Greek nationals who have resided abroad for at least 25 consecutive years prior to death are not subject to Greek forced heirship rules regarding property located outside Greece. This provision allowed Greek nationals with long-standing residence abroad to dispose of their foreign assets freely, without being constrained by reserved portions in favour of close family members.
This rule predates Regulation (EU) 650/2012, when Greek law provided that succession matters were governed by the deceased’s nationality at death. Since the nationality of the deceased was the sole connecting factor, Greek law would invariably apply to the entire succession of Greek nationals. Article 21 of Law 1738/1987 was designed to provide flexibility for those living abroad long-term and was therefore intended to operate in a legal environment where Greek law governed the entirety of the succession of every Greek national by default.
Interaction with Regulation (EU) 650/2012
Under Regulation (EU) 650/2012, the applicable succession law is now determined by the deceased’s habitual residence at death (Article 21). Alternatively, a person may elect the law of their nationality to govern succession (Article 22).
According to Greek legal scholarship, Article 21 of Law 1738/1987 now applies only where Greek law governs because the deceased expressly elected it under Article 22 of the Regulation.
The rationale is straightforward: the provision was crafted when nationality was the exclusive connecting factor and was addressed specifically to Greek nationals.
Proposed repeal and practical impact
Article 7 of the Draft Law expressly repeals Article 21 of Law 1738/1987. Once enacted, the exemption from Greek forced heirship for Greek nationals resident abroad for more than 25 years will cease to apply.
The principal practical consequences concern Greek nationals who:
reside abroad on a long-term basis; and
have elected Greek law to govern their succession under Article 22 of Regulation (EU) 650/2012.
For such individuals, Greek forced heirship rules would apply to the entire estate, including assets located outside Greece. Reserved portions in favour of descendants, parents, and the surviving spouse would attach to the deceased’s worldwide estate, regardless of the duration of residence abroad.
As a result, existing wills or estate planning structures that relied on the ‘25-year rule’ to freely dispose of foreign situs assets are expected to no longer achieve their intended effect. A review of testamentary arrangements would therefore be advisable once the new law enters into force.
Reform of the forced heirship framework
In addition to abolishing the ‘25-year rule’, the Draft Law proposes a substantial reconfiguration of Greek forced heirship.
Monetary nature of the forced share
The forced share would be converted from a proprietary right into a monetary claim, equal to one half of the heir’s intestate share. The claim arises upon death and is inheritable and transferable. Courts may still order in specie satisfaction through transfer of specific estate assets.
Forced heirs
The categories of forced heirs remain unchanged: descendants, parents, and the surviving spouse, provided they would have been entitled as intestate heirs.
Surviving spouse
Where the surviving spouse concurs with one child, the spouse’s intestate share increases from one quarter (1/4) to one third (1/3), yielding a forced share of one sixth (1/6). Where there are two or more children, the spouse’s position remains unchanged. The spouse may alternatively claim a right of usufruct over estate assets.
Advance waiver contracts
A notable innovation is the introduction of advance waiver contracts, allowing a person to waive future inheritance rights - including the forced share- by notarial agreement, with or without consideration. This departs fundamentally from the current prohibition on such agreements and opens new possibilities for structured succession planning.
Next steps
The public consultation closed on 20 April 2026, and the legislative process is in progress. Clients with succession arrangements involving Greek law -particularly those relying on the ’25-year rule’- should monitor developments and consider reassessing their estate plans.
Further updates will follow as the reform progresses.