Bank account protection threshold raised under new rules

The new regulations aim to strengthen the protection of depositors and provide greater flexibility for individuals facing difficulties with overdue debts.

The most significant measure concerns the increase of the monthly seizure-exempt threshold for debts to the State from €1,250 to €1,600 per individual. The new provision offers additional protection of €350 per month, or €4,200 annually, for individuals with frozen bank accounts due to tax liabilities.

The increased exemption will apply to one designated bank account per credit institution, which must be electronically declared to the Independent Authority for Public Revenue (AADE) as a protected (seizure-exempt) account.

Increases for debts to banks and private entities

Similarly, for debts to banks and other private creditors, the seizure-exempt threshold for individual accounts increases from €1,500 to €1,600 per month. This change translates into an additional €100 of monthly protection, or €1,200 annually.

For joint bank accounts in cases of private debt, the exemption threshold rises from €2,000 to €2,200 per month, providing an additional €200 per month, or up to €2,400 per year.

Mandatory declaration of a protected bank account

The new provisions are expected to enter into force following the adoption of the omnibus bill, scheduled for the end of June.

However, the protection will not be applied automatically. In order for the seizure exemption to apply to debts to the State, taxpayers must electronically declare the bank account they wish to protect to the AADE.

In cases involving salary, pension, or social benefit payments, the designated account must be the one through which these payments are made.

Possibility of lifting seizure upon payment of 25% of the debt

A particularly notable provision introduces the possibility of lifting a bank account seizure even after it has been imposed.

Under this measure, the debtor may request the lifting of the seizure provided they pay 25% of the principal debt that led to the account freeze, along with the corresponding interest and surcharges.

The provision will also apply to existing seizures, enabling thousands of debtors to regain access to their bank accounts and restore their day-to-day financial activity.

However, this option will be granted only once per debtor, in order to prevent abusive use of the measure. Cases involving bankruptcy or insolvency proceedings are excluded.

Protection for special education allowances

The omnibus bill also includes a specific provision declaring special education financial allowances explicitly seizure-free, non-assignable, and non-offsettable.

This protection applies against debts to the State, social security funds, local authorities, and credit institutions, ensuring that these benefits are paid exclusively to their beneficiaries.

Overall, the new framework represents one of the most significant interventions in recent years in the management of private and public debt, enhancing depositor protection while aiming to facilitate the reintegration of debtors into economic activity.