New AADE rules facilitate transfers of seized properties

Under Decision A.1158/2026, issued by the Governor of AADE, George Pitsilis, the criteria and procedure for the release of seized real estate have been established for the first time. The reform aims to facilitate transactions in the real estate market and enable debtors to make more effective use of their property assets.

The most significant change is the abolition of the requirement for the full repayment of outstanding tax liabilities as a prerequisite for lifting a seizure. Until now, the sale of a seized property generally required the complete settlement of the debt owed to the State. Under the new framework, however, property transfers may proceed even where only part of the debt is repaid, provided that certain conditions are met. This offers greater flexibility to property owners while promoting liquidity and activity in the real estate market.

The procedure is initiated through an electronic application submitted via the myAADE platform under the “My Requests” service. Approval for the release of the seizure is subject to the cumulative fulfilment of specific conditions. The taxpayer must be eligible to obtain either a Tax Clearance Certificate or a Debt Certificate. In addition, the agreed sale price must not be lower than either the property’s market value as determined at the time the seizure was imposed or, where higher, its official objective (tax) value.

Furthermore, the notary handling the transaction is required to withhold and remit to AADE an amount corresponding to at least 25% of the outstanding seized debt from the sale proceeds. This percentage may be increased depending on the collectability of the debt and the taxpayer’s record of tax compliance. Where the tax clearance provisions require a higher withholding amount, the higher amount will apply.

AADE illustrates the new framework with the following example: for a property subject to a seizure securing a debt of €80,000, if the taxpayer achieves the highest tax compliance rating, the withholding of €20,000—representing 25% of the outstanding debt—is sufficient for the seizure to be lifted and the sale to be completed. Under the previous regime, repayment of the entire €80,000 debt would have been required before the transfer could proceed.

The new regulation is expected to remove a significant obstacle to real estate transactions by enabling the transfer and productive use of properties that have effectively remained frozen due to tax-related encumbrances. At the same time, it establishes a more flexible debt recovery mechanism for the State by facilitating the collection of part of the outstanding liabilities through completed property transfers, rather than preventing the use and transfer of the underlying assets altogether.