The Council of State has ruled unconstitutional the special provisions of the New Building Regulation (NOK) that incentivized reduced building coverage, the demolition of outdated structures, and the construction of zero-energy buildings.
Since 2012, the NOK had provided urban planning incentives—such as exceeding the maximum allowable building area and height—for constructing buildings with a zero-energy footprint. These incentives included up to a 50% reduction in land coverage (compared to the previous General Building Code), greater spacing between buildings, and the dedication of portions of open space for public use.
Key Amendment Provisions
According to the newly introduced legislative amendment, such planning incentives and increases (e.g., in building coefficient or building height) will automatically cease to apply and may only be valid if explicitly incorporated into Local and Special Urban Plans through officially designated “incentive zones.”
In determining these zones, authorities will consider:
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The geographic location and specific characteristics of each settlement,
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The level of urban development,
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The area's environmental carrying capacity and burden,
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The population density.
December 11, 2024 — Implementation Deadline
A critical deadline is set for December 11, 2024, by which construction must commence under building permits issued with such incentives.
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If construction has not begun by this date, permits must be revised to remove the incentives. This revision will be processed without any fees, taxes, or charges, and any amounts already paid will be refunded.
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If construction has already begun, the incentives may remain in effect, but their use cannot be extended. Construction commencement will be confirmed by Urban Planning Services or certified Building Inspectors as outlined in Law 4495/2017.
Environmental Offset Mechanism
An environmental offset mechanism is introduced for building permits that are annulled by court rulings or are pending annulment, provided construction activity has begun or funding applications have been submitted to the Recovery and Resilience Facility (RRF) or NSRF by December 11, 2024.
This mechanism includes:
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Payment of a special fee by property owners and contractors to the Deposits and Loans Fund,
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Implementation of environmental measures through the Special Environmental Offset Urban Plan (Ε.Σ.Π.Ι.Α.Π.), to be developed within two years.
Possible Environmental Measures:
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Acquisition and development of public spaces,
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Urban redevelopment, planting, and public space improvements,
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Demolition of unauthorized or hazardous buildings,
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Creation of green and parking areas,
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Support for sustainable and climate-neutral cities,
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Restoration and preservation of cultural monuments.
These measures will be implemented either per municipal district or city-wide in metropolitan areas such as Athens and Thessaloniki.
Pending Regulatory Actions
The issuance of Presidential Decrees and Ministerial Decisions is expected to:
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Detail the environmental offset mechanism,
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Regulate the permit revision and refund processes,
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Define technical specifications for related studies and applications.
Additionally, the continued application of incentives may be approved for areas where, by December 11, 2024, such provisions have been incorporated into approved spatial plans (e.g., Special Spatial Plans, urban plan amendments, land-use Presidential Decrees).
Transitional Provisions and Repealed Articles
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Sanctions under Article 125 of Law 4495/2017 for revoked permits involving such incentives are suspended until new decrees are issued.
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These new regulations do not apply to properties with listed or protected status, provided relevant heritage authority approvals are secured by the same deadline.
Repealed Provisions Include:
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The NOK provision exempting mezzanines from building coefficient calculations,
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The ability to construct primary-use spaces up to 35 m² above the height limit,
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The classification of swimming pools as equivalent to planted surfaces.
