A new debt settlement scheme allows thousands of taxpayers, self-employed professionals, and businesses in Greece to repay outstanding debts owed to the Independent Authority for Public Revenue (AADE) and the e-EFKA Social Security Fund through up to 72 monthly installments.
The scheme applies to certified debts that became overdue by 31 December 2023 and is designed to help individuals and businesses regain tax and social security compliance while benefiting from important advantages, including the issuance of tax or social security clearance certificates and the suspension of enforcement measures.
Which Debts Can Be Included in the Settlement Plan?
The new arrangement covers:
- Certified tax debts that became overdue by December 31, 2023.
- Debts that are not already included in an active settlement arrangement at the time of application.
- Certain debts currently under payment suspension, subject to the taxpayer’s choice and eligibility.
Applications must be submitted electronically by December 31, 2026.
Regarding social security liabilities, the scheme covers debts owed to e-EFKA relating to periods up to 31 December 2023, provided they were not included in an active repayment arrangement as of 21 April 2026 and have not already been settled through another scheme before the application date.
Any social security debts arising after 1 January 2024 must first be settled under the standard installment arrangement before the debtor becomes eligible for the new 72-installment scheme.
Eligibility Requirements for the 72-Installment Plan
To qualify for the settlement, applicants must meet the following conditions:
Settlement of Other Outstanding Debts
Taxpayers must not have any other overdue debts, or such debts must already be legally settled through an approved arrangement.
Submission of Tax Returns
All income tax returns for the previous five years must have been submitted before applying.
No Final Convictions for Tax Evasion
Applicants must not have an irrevocable conviction for tax evasion or smuggling offenses.
For social security debts, applicants must also ensure that any outstanding liabilities outside the new scheme have been settled or regulated in accordance with the applicable legislation.
Number of Installments and Minimum Payment Amount
The new tax debt settlement scheme provides:
- Up to 72 monthly installments.
- A minimum monthly payment of €30.
- A fixed interest rate throughout the duration of the arrangement.
- The option of early repayment at any time.
- For social security debts, the first installment must be paid by the last working day of the month in which the application is submitted. For tax debts, the settlement becomes effective once the first installment is paid within three working days after the application.
The settlement becomes effective once the first installment is paid, which must be completed within three working days from the application date.
Benefits of Joining the Tax Debt Settlement Plan
Taxpayers who successfully join and maintain the arrangement can enjoy several important benefits.
Tax Clearance Certificate
Participants may obtain a tax clearance certificate, which is often required for business transactions, property transfers, and public sector dealings.
Suspension of Criminal Prosecution
Criminal prosecution related to outstanding debts to the State is suspended for as long as the taxpayer remains compliant with the settlement terms.
Protection from Enforcement Measures
Enforcement actions, including seizures and collection procedures related to the regulated debts, are suspended while the arrangement remains active.
Improved Financial Stability for Businesses
Businesses can better manage their cash flow, strengthen their financial position, and improve their overall tax compliance profile.
For social security debts, compliance with the arrangement also allows debtors to obtain a social security clearance certificate and suspends enforcement procedures in accordance with e-EFKA regulations.
When Is the Settlement Lost?
The arrangement may be revoked if:
- Two consecutive monthly installments are not paid.
- Other overdue tax liabilities remain unsettled.
- New tax debts arise and are not paid or legally arranged within the prescribed deadlines.
- For e-EFKA debts, the arrangement is also lost if the debtor fails to remain current with newly arising social security obligations throughout the repayment period. If the arrangement is cancelled, the remaining outstanding balance immediately becomes due and payable.
If the settlement is lost, the remaining balance becomes immediately due and payable.
A Valuable Opportunity for Individuals and Businesses
The new 72-installment tax debt settlement plan represents a significant opportunity for individuals, self-employed professionals, and businesses seeking to regularize their tax obligations under favorable repayment terms.
72-Installment Debt Settlement for Tax and e-EFKA Liabilities: What You Need to Know
Although both repayment schemes have similar characteristics, they are administered by different authorities and operate under different eligibility criteria. Therefore, a thorough assessment of both tax and social security liabilities is essential to ensure the appropriate application process is followed and to avoid errors that could impact eligibility or the continued validity of the repayment arrangement.
AFS: Your Trusted Partner for Tax and Accounting Services
If you would like to determine whether you qualify for the new 72-installment debt settlement scheme, Athens Financial Services (AFS) is here to assist you. Our experienced tax and accounting specialists evaluate your tax and social security liabilities, assess your eligibility, and manage the entire application process to ensure that your case is handled accurately and efficiently.
For personalized assistance, contact Athens Financial Services (AFS) through our contact page, call us at +30 210 8317702, or follow our official social media channels to stay informed about the latest tax regulations, funding opportunities, and financial developments in Greece.
