I. The constitution guarantees the inalienability of the territory owned by the monasteries located in Mount Athos (Article 105, paragraph 2 of the constitution). However, there are significant disagreements in theory and practice regarding the possibility or impossibility of selling real estate that is located outside Mount Athos.
The different opinions, which were strongly expressed over a long period of time in various discussions as well as through legal decisions, have arisen due to contradictions inherent in the Constitutional Charter of Mount Athos. Indeed, in this crucial legislative document, it is explicitly stated the inalienability of the immovable property of the Athonite monasteries (Article 181), while in another article of the same legislative document, the authorities of the monastery are granted the right to make decisions regarding "rental or sale" (Article 90).
Among the various views expressed, both in theoretical discussions and in legal practice (up to the level of the highest courts), the opinion that ultimately prevailed was the one imposed by reality itself and by the extreme financial necessity of the monasteries. According to this view, the inalienability of immovable property of the Athonite monasteries applies only to property located within the Athonite territory. Consequently, under certain conditions and with specific concessions, the sale of Athonite immovable property located outside the territory of Mount Athos, whose boundaries are constitutionally defined (Article 105, paragraph 1 of the constitution), has become possible.
II. The law No. 1198/1981 has put an end to the disagreements by establishing the possibility of selling and exchanging real estate of all types (forested or agricultural lands, as well as urban plots) located outside of Mount Athos. However, such actions are allowed solely under strict conditions explicitly outlined in the law, and only provided that the buyer is neither the state nor another public law legal entity (Article 2, paragraph 6 of law No. 1198/1981).
These conditions are defined as follows:
- A decision on this matter must be made by the authorities of the monastery (by a two-thirds majority of its members) (Article 1 of law No. 1198/1981).
- The benefit of the transaction must be evident, for example, in cases where the property does not generate income, or when the proceeds from the sale are intended to cover the monastery's urgent needs. (Article 1 of law No. 1198/1981).
- An auction must be conducted in strict accordance with the provisions of the law (Article 2, paragraphs 1-4 of law No. 1198/1981), while its conduct must be reported to the Ministry of Economy and the administration of Mount Athos.
- The auction results must be deemed advantageous for the monastery. Otherwise, a direct sale of property is permitted within six months, if the revenue from the transaction exceeds the proceed of a public auction by no less than 10%. (Article 2, paragraph 5 of law No. 1198/1981).
- The results of the agreement must be formally communicated to the Greek state before the final transaction is concluded (otherwise, this agreement will be considered invalid).
Sales or exchanges of real estate owned by Athonite monasteries outside of Mount Athos, conducted in any other manner, as well as cases of non-compliance with the aforementioned conditions, will result in the annulment of the concluded transaction. The annulment, however, may take effect solely for the benefit of the monastery and the Holy Community. The buyer may, in this case, demand the return of any amounts already paid, in accordance with the provisions on unjust enrichment (Article 3 of law No. 1198/1981).
The Greek state, on its part, is entitled, within three months following the publication of the auction results, to declare to the monastery its intention to acquire the specific property under the conditions set forth in the conducted auction (the required amount must be transferred to the Deposits and Loans Fund) and only if the sale of this property to the state is deemed necessary (Article 4 of law No. 1198/1981). Regarding forest lands, the right of priority is granted to the state by law No. 998/1979 (Article 72).
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The provision of Article 181 of the Constitutional Charter, which explicitly states the inalienability of the immovable property of the Athonite monasteries, nevertheless includes, due to the generality and universality of its wording, certain cases of compulsory expropriation of property. It has been decided, however, that since this provision does not pertain to matters of self-governance of Mount Athos, it may be "amended or annulled by ordinary law" (State Council 869/1967) provided that this law is specific and explicitly concerns the Athonite state (see also: Supreme Court 177/1976: IoV 24.707 and following).
Cases of forced expropriation of Athonite properties (metochia) outside Mount Athos have led to the well-known issue of the dependencies, which remains unresolved to this day. Immediately after the incorporation of Mount Athos into the Greek state, which, at the time, was in a particularly difficult position due to the wave of refugees following the Asia Minor catastrophe, thousands of refugees were hosted on the estates of the Athonite monasteries, especially on the peninsula of Chalkidiki, as well as in numerous other areas.
Based on the legislative act of the government of A. Papanastasiou dated April 8, 1924, the Minister of Agriculture was empowered to conclude an agreement with the Holy Community of Mount Athos for a ten-year lease of the land holdings (metochia) of Athonite monasteries, along with their buildings, for housing refugees (the annual rent was not to exceed five million drachmas of that time).
Indeed, in accordance with this law, a corresponding agreement was signed on April 18, 1924. Nevertheless, owing to the prolonged period of leasing, the Greek state was obliged to expropriate the Athonite estates by means of the legislative act dated September 2, 1926, which was subsequently ratified, with amendments, by law No. 4716/1930. This law also determined compensation for the properties to be expropriated and a penalty of 8%. Furthermore, it was established that until the compensation was covered, the government would pay the monasteries rent amounting to 8% of the property value, estimated based on approximate calculations. This rent would be deposited into a special account for the interest and principal of the designated compensation.
Since it was not possible to pay the specified compensation, law No. 5377/1932 was subsequently enacted (which was later amended by law No. 6242/1934 and emergency law No. 435/1937). This law established a new method for the valuation and compensation of the value of expropriated monastic properties. It was determined that the value of the property was to be calculated based on the average net natural profit of the asset over the decade preceding its expropriation or the leasing of the respective area. This net profit, capitalized at an annual interest rate of 6%, was to constitute the price of the property, while an annual 6% of this amount was to compensate for "subsequent profits from this property."
To pay compensation for Athonite properties, law No. 5377/1932 established a permanent "National Athos Loan" with an interest rate of 6%, the bonds of which were defined as "registered, stable, and inalienable." These bonds were issued by presidential decree No. 4/10.04.1933, transferred to the monasteries of Mount Athos, and thus began the gradual payment of annual interest.
Unfortunately, there soon began the war and the occupation period (1941-1944), leading to the devaluation of drachma and to monetary reforms (law No. 18/1944). Within this framework, the Greek government considered that its obligations were fulfilled by paying interest, and by a series of laws (law No. 679/1943, emergency law No. 491/1945, and legislative act No. 324/1947) decided that instead of full compensation, it would provide economic assistance to the Athonite monasteries, paradoxically described as "generous."
This inconsistency of the Greek government, which effectively expropriated hundreds of thousands of territories of the Athonite metochia without providing the "full compensation" guaranteed by the constitution (Article 17 of the constitution), has led to the so-called "issue of dependencies" and caused ongoing tensions between Athos and the Greek state.
In 1981, the Greek state, through law No. 1166/1981, decided to provide Athonite monasteries with an annual financial grant, as support for their centuries-old religious, spiritual, and cultural mission (Article 1). Following the enactment of this law, the provision of assistance outlined in emergency law No. 491/1945 and legislative act No. 324/1947 ceased (Article 4). It was indicated that the amount of this annual financial grant would be determined by a decision of the Council of Ministers after a proposal from the Minister of Foreign Affairs. It would be distributed among the monasteries and paid either in a lump sum or in two separate installments, by a decision of the Minister of Economy, after a proposal from the Minister of Foreign Affairs and with the consent of the Holy Community of Mount Athos (Articles 2 and 3).
Although a provision was made for further elaboration of the law's implementation details in a special regulation (Article 5), this regulation has not yet been issued.
There is an opinion that this annual financial grant to the monasteries of Mount Athos (established by law No. 1166/1981) has relieved the state of the obligation to pay the so-called "rent for metochia." This view is incorrect, as the annual financial grant to the monasteries, especially one paid for the specific purpose mentioned in the law, namely to support the centuries-old religious, spiritual, and cultural mission of Mount Athos, clearly does not aim to fully cover the compensation for the forcibly expropriated real estate of the monasteries, which amounts to hundreds of thousands of territories.
