The Ministerial Decision determining the coefficients for calculating the minimum price they will receive the State and the Municipalities from the concession of seafront and beach signed by the Minister of National Economy and Finance Kostis Hatzidakis.

The enactment, for the first time with Law 5092/2024, minimum consideration in combination with the establishment of exclusively electronic auctions which will be carried out by the Ministry of Finance they are safeguards to ensure transparency in coastal and beach concessions which will take place in the future, the MINISTRY of

The mathematical formula from which the minimum rent is derived, as established by Law 5092/2024, is:

“Objective value of neighboring property x Waterfront Weighting Factor x Activity Weighting Factor x concession years x 3%”. The beach gravity factor depends on the area and the island where the beach is located, while the activity factor is linked to the type of activity that the concessionaire will carry out.

With the Ministerial Decision, the coefficients of the equation are determined as follows:

-Regarding the objective value, it is provided that if there is more than one property bordering the granted area, with different zone values, then the highest of them is taken into account. If the neighboring properties are not included in the system of objective values, the zone value of the nearest property included in the system of objective values â€‹â€‹is taken into account.

-The gravity coefficients of the shores are defined as follows:

a) For seashores and beaches located in Mykonos and Paros: 0.60.
b) For seashores and beaches located in Crete, Rhodes and Corfu: 0.35.
c) For other coastal areas and beaches: 0.25.

-The activity weighting factors are:

a) Development of umbrella seats: 1.
b) Operation of a mobile canteen, development of table seats: 2.
c) Exploitation for marine recreational vehicles: 3.
d) Maritime sports associations (exclusively for the exercise of their activities): 0.1.

It is recalled that with a transitional provision established in the law, for the concessions that will be made until December 31, 2025, one more clause has been set to determine the minimum price. It is specifically provided that the price cannot be less than the maximum rent collected by the State from the concession of the specific beach after 2017.

This regulation is specified by the Decision as follows:

-If the price resulting from the mathematical formula is lower than the maximum rent of the period after 2017, then the minimum price increases to this level. For example, if the minimum price is 10,000 euros but a year after 2017 the beach was granted for 11,000 euros, then the minimum price becomes 11,000 euros.
-If the price resulting from the mathematical formula is more than 15 % higher than the maximum rent of the period after 2017, then the minimum price is determined at this level (maximum rent after 2017+ 15 %). For example, if the mathematical formula results in a minimum rent of 12,000 euros, but the maximum rent collected by the State after 2017 was 10,000 euros, then the minimum rent becomes 11,500 euros. If it is a concession to a related company, which is made following a request from the latter, then the surcharge rate becomes 25%. For example, if the mathematical formula results in a minimum rent of 13,000 euros and the maximum rent collected by the State after 2017 was 10,000 euros, then the minimum rent becomes 12,500 euros.