Greece Eases Property Seizure Rules for Owners With Tax Debts

Thousands of Greek property owners with tax debts are expected to benefit from new legislation that allows the sale of seized real estate without requiring the full repayment of outstanding debts before the transaction.

The Panhellenic Property Owners Federation (POMIDA) welcomed the reform after the decision by Independent Authority for Public Revenue (AADE) Governor George Pitsilis was published in the Government Gazette on July 30. The measure implements Article 18 of Law 5293/2026, which was introduced by Deputy Prime Minister and Minister of State Kostis Hatzidakis.

POMIDA described the reform as a major breakthrough for owners whose properties had remained effectively frozen for years because government seizure orders prevented them from selling their assets to reduce or settle their debts.

What Changes

Under the new rules, owners can apply to have a seizure temporarily lifted so they can complete a property sale, provided they meet three key conditions:

• They must qualify for a tax clearance certificate that allows part of the sale proceeds to be withheld for the state.
• The property must be sold at a fair market value. The agreed price cannot be lower than the property’s commercial value at the time the seizure was imposed or, where higher, its objective tax value.
• A portion of the outstanding tax debt must be paid directly to the state from the sale proceeds through the notary handling the transaction.

Digital Application Process

Applications are submitted electronically through the myAADE platform. Owners must provide supporting documentation, including property registry records, objective valuation documents and, in some cases, an independent market valuation.

If approved, the tax authority issues a conditional release valid for one month, specifying the amount that must be withheld from the sale proceeds. Once the payment reaches the tax authority, officials issue the final release of the seizure, allowing the transfer of ownership to proceed.

Withholding Depends on Tax Compliance

The percentage withheld from the sale price depends on the owner’s tax compliance history.

Authorities assess applicants using five objective criteria, including:

• repayment of regulated tax debts,
• timely submission of tax returns,
• repayments made after the seizure,
• the time elapsed since the seizure, and
• the origin of the debt.

Owners with the strongest compliance record will have only 25% of the outstanding debt withheld from the sale proceeds, while those with the lowest score may have 100% withheld.

For example, an owner with an €80,000 tax debt and the highest compliance rating would pay €20,000 from the sale proceeds instead of being required to clear the entire debt before selling the property.

POMIDA Welcomes Reform

POMIDA said the previous system created a deadlock by preventing owners from selling seized properties unless they first repaid all outstanding debts—something many were unable to do without selling the property in the first place.

The federation said the new framework benefits both taxpayers and the state by allowing owners to dispose of previously frozen assets while enabling the government to recover part of the outstanding debt immediately.

It added that the reform forms part of a broader package of measures under Law 5293/2026 aimed at improving the operation of Greece’s property market while offering a more practical solution for taxpayers with debts to the state.

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