Mykonos: State Legal Council rules on sublease and shoreline

A ruling by the State Legal Council adds a new chapter to a complex case involving a food-and-beverage business on Mykonos and a 165.16-square-metre plot of shoreline. The plot in question lies in front of a property where the business operates, which is linked to a hotel on the island. The case combines a lease dispute with a question over the concession of public space. The report does not name the companies or individuals involved. The source of the republished item is a specialised tourism outlet.

In April the sub-lessor company terminated the commercial sublease, citing delayed payment of rent. The termination notice specified total debts of €1,271,683.19. The amount breaks down into €350,822.03 as the balance owed from 2024 and €920,860.16 in rent for 2025. The other side put forward counter-claims totalling €457,256.83. These claims included, among other things, hotel guest consumption charges and a contribution towards desalination costs.

The offsetting of the counter-claims was accepted, and the remaining balance was paid in full on 5 June. The State Legal Council, however, ruled by majority that the sublease had already been terminated as of 25 May. Its reasoning was that the statutory one-month notice period had elapsed following service of the termination notice. According to the ruling, the payment made on 5 June did not reverse the effects of the termination. A related lawsuit is pending before the Athens Single-Member Court of First Instance, with a hearing set for 7 October.

The second part of the case concerns the shoreline. The sub-lessor applied for the concession of the 165.16 square metres, and the Public Property Service initially accepted the application, signing a concession agreement. However, the process was not completed with publication on Diavgeia, as a second application was submitted by the sub-lessee for an area that included the same plot. The result is that there is currently no active concession agreement in place for the space. The relevant service cited reasons of public interest for the suspension.

The reasons cited include safeguarding tourist traffic on a particularly popular beach and avoiding a loss of public revenue. The State Legal Council did not award the beach plot to either side. The decision rests with the Public Property Service, which will rule on the fate of the two applications. Until then, the shoreline plot remains without a lawful concessionaire. This situation creates ambiguity over its use during the current season.

The case highlights the complex relationship between private lease disputes and the concession regime for the shoreline, which constitutes public common-use space. On Mykonos, where the value of the coastal zone is exceptionally high, such disputes arise frequently. The issue of beach concessions has also affected other Cycladic islands, with the Municipality of Paros having taken an initiative to return the authority to municipalities. Shoreline inspections have intensified nationwide. Recent times have seen arrests for unlawful occupation recorded at several destinations.

The next milestone in the case is the hearing of the lawsuit on 7 October. Until then, no final outcome is expected regarding use of the property. The Public Property Service’s decision on the shoreline may be issued independently of the court proceedings. More from Mykonos on the Mykonos page. Cyclades Today will follow developments.