In the systematic recording and management of the overdue debt The Independent Public Revenue Authority is proceeding to the State (AADE), with the aim of enhancing the effectiveness of public revenue collection and imprinting the country’s realistic economic image.
According to the latest AADE data available, the total amount of overdue debts amounts to about 108.4 billion euros, significantly burdening the state budget and financial management.
Of the total arrears, more than 10 billion euros are characterized as unacceptable collection. These are mainly claims from bankrupt businesses, deceased taxpayers without heirs or debtors without recorded assets.
Already, an amount of EUR 26.3 billion has been included in the Special Register of Irnscuted Collection of AADE, with the aim of rationalizing and managing these obligations. The integration process is expected to be completed by the end of 2025, temporarily freezing the relevant obligations to focus on attempts to collect debts with realistic recovery capacity.
Inclusion in the Registry, under the Code of Public Revenue Collection (KEDE), requires the complete exhaustion of the debtor’s assets and the plus debtor.
The basic criteria include:
- Absence of recorded property or claims by third parties
- Criminal prosecution where required
- Objective weakness
- Low -value property (less than 5% of the basic debt, with ceilings of 100,000 euros for real estate and 30,000 euros for mobiles)
OR process differentiates accordingly the amount:
- For debts of up to 300,000 euros, the local DOUs and Customs Services are responsible
- For amounts from 300,000 to EUR 3 million, the AADE Governor’s approval is required
- For debts of more than EUR 3 million, the decision is taken by the Governor on the recommendation of the Operational Unit of Collection
The designation of a debt as an unsubstantiated collection does not imply its deletion, but the suspension of collection measures for up to a decade. The State reserves the right to review in the event of a change in data (eg property detection), so the debt “revives” and becomes demanding again.
By registering in the register:
- The limitation of the debt is suspended
- The issuance of tax certificates is suspended
- Binding accounts, lockers and other investment media
- Permitted set -offs and seizures in case of data detection
At the same time, AADE intensifies the collection actions for other arrears, which are estimated at around € 81 billion. For 2025, the target of at least 3 billion euros has been set, with targeted actions, such as making phone calls to 60,000 debtors.
Repayment arrangements are also under way, with particularly favorable terms:
- To Municipalities: up to 60 doses, minimum amount of 50 euros per installment and exemptions from up to 95% for vulnerable groups
- To the Tax Office: Fixed interest rate up to March 2025 – 4.34% for up to 12 doses, 5.84% for over 12 and 7.34% for second arrangement with more than 12 doses
Publication of debtors
In collaboration with E-EFKA, AADE will publish on June 30, 2025, the up-to-date data on arrears. The list will include debts of more than EUR 150,000 that remain outstanding for more than one year. This is aimed at enhancing the transparency and confidence of citizens towards the tax system.
The overall policy of management of overdue debts is a key pillar for fiscal stability and strengthening tax compliance. AADE continues to implement targeted actions, enhancing collecting tools, with the aim of securing public revenue and supporting the Greek economy.