The Presidential Decrees (PDs) provided for by Law 5197/2025 (Government Gazette A/76/16 May 2025) pertain to the terms and conditions under which it can be substantiated that construction activities had commenced prior to 11 December 2024. They also specify the monetary obligations arising from the implementation of the environmental offset mechanism, as well as the conditions for applying incentives included in special urban planning frameworks approved before 11 December 2024 (e.g., ΕΣΧΑΣΕ, ΕΣΧΑΔΑ, and Integrated Development Plans – ΣΟΑ), including provisions for listed (preserved) buildings.
Simultaneously, the draft Presidential Decree clarifies the means of documenting the commencement of construction works, establishing a clear regulatory threshold for determining which projects may proceed under the existing building permits without incurring additional financial burdens.
More specifically, the Decree defines "commencement of construction" in the following cases:
1. Commencement through Excavation or Concrete Works
Construction is considered to have commenced with the execution of excavation works (for foundations or slope support) or, in the case of extensions that do not require excavation, with the pouring of concrete. Verification of such commencement must be evidenced by notification to any public authority, the submission of a Detailed Periodic Statement to the Unified Social Security Fund (EFKA) by the employer, aerial photography, and/or notarized contracts with certain dates relating to the initiation or continuation of construction works.
2. Demolition within a Six-Month Period
Demolition of pre-existing structures on the same plot also constitutes valid proof of commencement, provided that it occurred no earlier than six months prior to 11 December 2024. This date has been designated by the Council of State (StE) as the cut-off point for the legality of building permits.
3. Archaeological Works
Commencement of construction is also recognized in cases where archaeological excavations were conducted by the competent Archaeological Service before 11 December 2024, provided that they were linked to a valid building permit.
Permits Under Judicial Review or Annulled
The Ministry of Environment and Energy allows construction projects, which are either subject to pending legal appeals or have been annulled by court decisions, to proceed under the concept of “environmental equivalence” as a compensatory mechanism for the application of building bonuses under the New Building Code (NOK).
In this context, a Special Plan for Environmental Equivalent Urban Upgrading (ΕΣΠΙΑΠ) will be drafted per municipal unit or per municipality (in the case of the metropolitan areas of Athens and Thessaloniki), under the auspices of the Ministry and funded either by the Green Fund or through private sponsorship.
Owners or contractors must deposit the designated amount—calculated under the provisions of the law—via the Deposits and Loans Fund to the relevant municipality. These funds will then be used to implement green interventions directed by ΕΣΠΙΑΠ, aiming to enhance public space and urban quality of life. This applies particularly in areas where increased building capacity is allowed through NOK incentives, enabling the continuation of construction projects currently undergoing legal review, as well as properties incorporated into the Recovery and Resilience Facility (RRF) or the National Strategic Reference Framework (NSRF/ESPA).
Such cases require approval from both the Central Council of Urban Planning Issues and Disputes (KESYPOTHA) and the Central Council of Architecture (KESA), which will assess the necessity of proceeding with the construction permit based on technical, financial, and legal criteria.
To retain the NOK bonuses in these instances, an environmental contribution fee of 8% must be paid, calculated on the value of the additional buildable space granted through the incentives. For projects applying for funding under the RRF or NSRF, the contribution rises to 15%. The property zone value used for calculating the environmental fee is the one in effect as of 11 December 2024.
Application of NOK Incentives in Developments with Special Urban Planning Status
For developments included in special urban planning regimes where NOK-related incentives have been annulled by the Council of State, a request must be submitted to KESYPOTHA. This request must be accompanied by detailed justification and submitted within three months from the effective date of the law.
