Up to 75% debt write-off and halt to seizures

Thousands of Greek citizens with debts to municipalities and local government entities can secure protection from seizures, even where enforcement measures have already begun.

Eligibility requires the inclusion in the out-of-court debt settlement mechanism. Individuals and businesses with accumulated liabilities to municipalities—such as sanitation and lighting fees, fines for violations, and rents on municipal properties—can incorporate these debts into the scheme provided they exceed 10,000 euros, regardless of whether they are overdue or currently serviced. With the activation of the out-of-court mechanism for such claims, existing seizures do not disqualify applicants from entering a settlement. Once the procedure begins, enforcement actions are halted.

In practical terms, this means that for debtors whose bank accounts, wages or assets have been seized by municipalities or their legal entities, inclusion in the out-of-court mechanism suspends enforcement measures and lifts seizures already imposed, provided the restructuring terms are adhered to and the agreement is implemented.

The process is conducted electronically via the platform on gov.gr, using Taxisnet credentials, with settlement proposals generated automatically through an algorithm that takes into account income, assets and repayment capacity. Debts can be repaid in up to 240 monthly installments, with a minimum payment of 50 euros and a low interest rate. The framework also allows for significant debt write-offs, which can reach up to 75% of the principal and even higher levels for surcharges and fines. The extent of relief depends on the debtor’s financial position and asset value, as the state cannot be placed in a worse position than under forced execution.

Upon final submission of the application, seizures, auctions and other enforcement actions are suspended, giving debtors time to negotiate and reach a sustainable settlement. Once the agreement is signed, enforcement measures are lifted; however, if the arrangement is breached, they are immediately reinstated. In the event that the restructuring agreement is overturned or cancelled, municipalities may promptly resume enforcement actions to recover outstanding debts. If enforcement is initiated by a third party, the municipality or its legal entity is registered as a creditor.

In all cases, municipalities and their legal entities retain exclusive authority over the management of enforcement measures related to debts falling within the scope of the framework.

The Independent Authority for Public Revenue (AADE) will be responsible for collecting the restructured amounts, retaining a 5% fee and transferring the remainder to municipalities within 60 days, thereby accelerating revenue flows to local authorities.