Tax debt relief platform opens with up to 72 monthly instalments

Based on the planning of the Independent Authority for Public Revenue (AADE), the relevant option will become available on the myAADE digital platform in the coming days under the section “Debt Settlements – Application for Debt Settlement under Law 5313/2026”. The platform will be able to generate repayment arrangements based on the new “Pierrakakis Law” concerning private debt.

According to the Minister of National Economy and Finance, “this is a second-chance policy. But, essentially, it is a policy of economic reintegration.”

The new settlement scheme of up to 72 instalments for tax debts will operate alongside the corresponding arrangement for debts to e-EFKA arising from unpaid social security contributions. Both schemes concern older debts incurred up to the end of 2023. Combined with the existing permanent settlement scheme for newer debts, they can reduce the monthly repayment burden by almost half for hundreds of thousands of debtors.

How debtors choose their repayment plan

When the application platform becomes available through myAADE, debtors will be able to view the structure of their outstanding debt and the repayment schedule they are required to follow.

The longer the repayment period selected, the lower the resulting monthly instalment. However, choosing fewer instalments reduces the amount of interest charged.

The new settlement scheme is temporary and will remain open until 31 December 2026. It is aimed at individuals and businesses with old, unsettled debts to tax authorities, customs authorities and social security funds who are seeking a more realistic repayment solution.

For tax debts specifically, the first instalment must be paid within three days of submitting the application. For customs debts or debts managed by KEAO/e-EFKA, payment must be made by the end of the following month. This means that debtors must have sufficient liquidity available before applying.

Who benefits and how

A key feature of the new scheme is that it does not treat all debts in the same way.

Debts created up to 31 December 2023 may be included in the 72-instalment arrangement. By contrast, debts arising—or re-entered into settlement—from 1 January 2024 onwards will continue to be covered by the existing permanent scheme of 24 instalments.

This distinction was introduced to prevent a mass withdrawal from active permanent repayment arrangements. However, it also limits the expectations of those who had anticipated a single unified settlement scheme covering all debts, without time restrictions and with a larger number of instalments.

According to data from the Ministry of National Economy and Finance, more than 1.5 million individuals and legal entities with outstanding unsettled debts from before 2024 could benefit from the new arrangement.

The new scheme does not replace the existing permanent settlement system but operates alongside it. In practice, the result for debtors is a lower combined monthly repayment burden, as the older portion of debt is spread over six years while newer debts remain under the 24-month arrangement.

In practice, the new settlement could prove particularly beneficial for three main categories of debtors:

• Large debtors, with debts exceeding €150,000, who are seeking a way to settle part of their obligations and avoid consequences such as inclusion in the public list of major debtors.
• Small and medium-sized debtors, with debts generally ranging from €2,000 to €50,000, representing the largest group of citizens attempting to remain financially compliant. In many cases, a significant portion of their debt was accumulated before 2024 and can therefore be transferred to the 72-instalment scheme, substantially reducing their monthly burden.
• Debtors with old debts that have already resulted in enforcement measures, such as seizures. Those with relatively small debts—typically around €3,000 to €5,000—have an incentive to immediately repay one quarter of the debt and place the remainder into the 72-instalment scheme, potentially allowing the suspension of enforcement measures for the next five to six years.

A “gain” of up to half the monthly instalment

The main advantage of the new arrangement is precisely that it reduces monthly payments on older debts, making the overall repayment burden more manageable.

For debtors, the reduction in monthly payments may reach approximately 30% to 50%, depending on the proportion of the total debt accumulated before 2024.

Examples:

• An individual with total debt of €7,000, of which €5,000 relates to older debts, will not need to settle the entire amount over 24 instalments. The €5,000 may be placed under the 72-instalment scheme, while the remaining €2,000 remains under the 24-instalment arrangement. As a result, the total monthly payment would fall to approximately €171, compared with €310 if the entire amount were settled over 24 instalments.
• Similarly, for a debt of €4,000, of which €3,000 relates to obligations incurred before 2024, the total monthly instalment may decline to approximately €95, compared with €177 under the permanent settlement scheme alone. For a debtor with limited liquidity, this difference may be decisive.
• For larger debts, such as a business with total liabilities of €300,000, half of which relates to older debts, the benefit becomes even more significant. Instead of a monthly burden exceeding €13,000, the combined use of the 72- and 24-instalment schemes could reduce the payment to approximately €9,000.

In other words, the new settlement scheme is not a universal solution for all debts. However, combined with the permanent settlement framework, it can make repayment more realistic for many debtors.

The critical issue is the correct classification of debts and an assessment in advance of whether the lower monthly payment is genuinely sustainable over the long term.

Presenting the new measure, Minister of National Economy and Finance Kyriakos Pierrakakis stated:

“We know very well that for many of our fellow citizens, professionals and small and medium-sized enterprises, outstanding obligations from the past continue to weigh on the present and limit the future. There are people who do not refuse to meet their obligations. They want to settle their debts. They want to remain consistent. They want to return to normal economic life. But they need a realistic framework to do so.

They need a state that extends a helping hand rather than pointing a finger. This is who we are addressing—not strategic defaulters, but those who are making an effort. Those who want to stand on their feet again.”