With the above decision, the withholding rate is reduced to 5% of the sale price, down from the previous 50% applicable to debts under collection suspension, provided that the debtor offers sufficient security for the repayment of the debt, either through guarantees or by registering a mortgage on another property.
Specifically, when there are overdue debts with a principal amount exceeding €50,000 that are under collection suspension—either by court order or a decision of the Dispute Resolution Directorate—and the debtor wishes to sell a property, the withholding rate is set at 5% if the taxpayer provides either a guarantee or a first mortgage on another property they own. In the case of a mortgage, 80% of the objective value of the offered property is taken into account to reduce the withholding.
If the value of the property does not fully cover the reduction of the withholding from 50% to 5%, the withholding is adjusted proportionally.
