The Ministry of National Economy and Finance on Syntagma Square, Athens. Photo: George E. Koronaios / Wikimedia Commons (CC BY-SA 4.0)

Greece Moves to Spread Old Tax and EFKA Debts Over 120 Instalments

by · Greek City Times

Greeks who owe money to the tax office or to social security funds could soon get up to 10 years to pay it back, under provisions tabled in Parliament by the Ministry of National Economy and Finance.

The bill raises the number of monthly instalments in the special debt-settlement scheme for the Independent Authority for Public Revenue (AADE) and e-EFKA/KEAO from 72 to as many as 120, Naftemporiki and in.gr reported. It also widens the range of debts that can be included and extends the deadline for applications to 30 June 2027.

Naftemporiki reported that the omnibus bill is due to be voted on in November, while in.gr said the AADE application platform is expected to open by mid-November. Until the law passes, the details below remain subject to change.

Who can apply

According to Article 35 of the bill, as reported by in.gr, the scheme covers confirmed debts to the tax administration that fell overdue by 31 December 2024, provided they were not already under a payment arrangement on 30 September 2026 and have not been placed in another arrangement before the application is made.

Read more: AADE Announces 43 New Property Auctions Across Greece, With Starting Bids From Just €1,000

To join, taxpayers must, on the day they apply:

  • have paid off or legally settled their other overdue debts, for example through AADE’s standing 24- or 48-instalment scheme (in.gr reported that debts arising from 1 January 2025 must be settled within one month of joining);
  • have filed all income tax returns for the past five years;
  • have no final conviction for tax evasion or smuggling.

All eligible debts that are not suspended must be included, while including suspended debts is optional, in.gr reported. Some debts are excluded, including amounts owed from the recovery of state aid under European decisions.

What it costs

The minimum instalment remains €30 a month and the annual interest rate is fixed at 5.84%, with a 15% surcharge for late payment, according to in.gr.

Kathimerini reported that monthly payments could be up to 40% lower than under the current 72-instalment scheme. But more instalments also mean more interest. In an example published by in.gr, a €12,000 debt spread over 120 instalments costs about €132 a month, but €15,872 in total. Over 72 instalments, the monthly payment rises to €198, while the total falls to €14,254.

Switching from 72 to 120 instalments

Taxpayers already in the 72-instalment scheme can move the remaining balance to the new one, as long as their current arrangement is still active. The switch is optional, and those who stay put keep their existing terms. Naftemporiki said about 35,000 debtors could benefit.

The move will not happen automatically. According to Ta Nea, people with an active arrangement will need to file a new online application on the AADE platform once it opens, so their balance can be recalculated.

How to apply and pay

Applications are made online. Entry into the scheme is confirmed only when the first instalment is paid, within three working days of the application. Later instalments are due by the last working day of each month.

In.gr said more than one million households and businesses could use the scheme. Those who keep up their payments can obtain a tax clearance certificate, while criminal prosecution for unpaid debts to the State and enforced collection measures are suspended. However, the State keeps the right to register a mortgage, to offset amounts it owes the taxpayer, and to refuse a clearance certificate for a property transfer when the debt is not secured.

How the arrangement can be lost

The arrangement is cancelled if the debtor:

  • misses two consecutive monthly instalments, or pays the last two more than two months late;
  • fails to settle other overdue debts within one month of joining;
  • fails to pay or settle new tax debts within three months of their due date.

In that case, the unpaid balance becomes due immediately and enforced collection resumes.

Social security debts

Debts to e-EFKA and other social security bodies for periods up to 31 December 2024 can also be spread over as many as 120 monthly instalments. Applications will be made mainly online through KEAO, the Centre for the Collection of Social Security Debts, and the first instalment is due by the last working day of the month in which the application is made, in.gr reported.

Debtors who keep to the terms will be able to obtain a social security clearance certificate, and enforcement measures will be suspended. The arrangement is lost after two consecutive missed payments or if other social security debts are not settled. People with an active 72-instalment arrangement for these debts can also switch.

Read more: Greece Opens Debt Relief Scheme to Smaller Debts and Greek Tax Office Lines Up 69 Property Auctions

(Sources: Naftemporiki, in.gr, Kathimerini, Ta Nea)

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