The 72-installment settlement scheme for tax and social security debts — despite its challenges — could be seen as a genuine opportunity for the 5.8 million individuals and businesses that accumulated overdue debts up to December 31, 2023. The total amount of overdue debts owed to the Independent Authority for Public Revenue (AADE) exceeds €110 billion, representing one of the country’s most serious fiscal challenges. An additional €52 billion is owed to the social security fund EFKA, with the bulk of the AADE debt concentrated among a relatively small number of large debtors, while the EFKA debt is spread across a large number of small debtors owing up to €30,000. EFKA data shows that approximately 1.44 million debtors owe up to €15,000, while 363,000 owe up to €30,000. In total, nearly 1.8 million insured individuals have debts of up to €30,000, making them the primary group expected to take advantage of the new settlement scheme.
Read also: The 72-installment plan for old debts is now open — who benefits and how to apply (with examples)
How the 72-installment tax debt settlement works
Applications can be submitted until December 31, 2026. Two electronic platforms have been launched for this purpose: one through AADE for tax debts owed to the tax authority, and one through the Social Security Debt Collection Center (KEAO) for debts owed to EFKA. In both cases, only debts that became overdue on or before December 31, 2023 are eligible for inclusion. Debtors who have already enrolled specific debts in another repayment arrangement cannot transfer them to the 72-installment plan, as the new scheme applies exclusively to unsettled debts. The key benefit is an extended repayment period, with an interest rate set at 5.5%.
Eligibility requirements
The primary requirement for joining the new settlement is that the debtor must have filed all income tax returns for the past five years, must not have an irrevocable conviction for tax evasion or smuggling, and must have legally resolved any other overdue obligations not covered by the arrangement. Before submitting an application, taxpayers should verify that they meet all required conditions.
Among the factors assessed are:
- The creation date and current status of the debts.
- Whether any other active repayment arrangements exist.
- The existence of any new overdue obligations.
- The debtor’s ability to maintain payments through to full repayment.
Being well-informed about the true extent of one’s debts is critical, as a misjudged decision can lead to an inability to maintain the repayment arrangement.
€110,000,000,000 is the total amount of overdue debts owed to the AADE
Loss of installment benefits
Maintaining the arrangement requires consistent monthly payments. If a debtor stops making payments or fails to comply with the terms, there is a risk of losing the benefits of the settlement. This could mean that the outstanding balance becomes immediately due and payable, and the tax authority may proceed with the legally prescribed debt collection measures.
Key benefits of the scheme
There are significant benefits available to those who enroll and comply with the arrangement. Among other provisions, a tax or social security compliance certificate is issued, enforcement measures and criminal prosecution for debts to the state are suspended, and foreclosure proceedings on movable and immovable assets as well as bank claims are put on hold. Existing third-party garnishments will not be extended to future claims of the debtor, subject to certain conditions. However, the arrangement comes with strict compliance requirements. The settlement is forfeited if the debtor fails to pay two consecutive monthly installments, or leaves new overdue debts — arising after December 31, 2023 — unresolved. In such a case, the entire outstanding debt becomes immediately payable, along with all applicable penalties and collection measures.
The debt settlement provisions stipulate that:
- The debts must not be subject to any repayment arrangement as of April 21, 2026, and must not have been enrolled in any settlement scheme up to the date of application.
- The debtor must have no other overdue obligations, or all such overdue obligations must be legally resolved in their entirety.
- The application for enrollment must be submitted electronically to the tax authority by December 31, 2026. If technical issues prevent electronic submission, it may be filed in person at the relevant service office responsible for collecting the debt.
- The first installment must be paid within three business days of the application submission date, for both AADE and KEAO arrangements.
- The settlement is forfeited if the debtor fails to pay two consecutive monthly installments, or delays payment of the last two installments by more than two months. It is also forfeited if, more than one month after enrollment, the debtor has not paid off, enrolled in a standing arrangement, or otherwise legally resolved all other overdue obligations that existed at the time of the application.
Examples
For example, an EFKA or tax authority debtor with €50,000 in overdue debt up to December 31, 2023 and an additional €25,000 in new overdue debt accrued from January 1, 2024 onward would need to enter two separate arrangements: the 72-installment plan for the older debts and a 24-installment plan for the post-2024 overdue amounts. For the €25,000 post-2024 debt, the monthly payment would be €1,102, while the older €50,000 debt enrolled in the 72-installment plan would carry a monthly payment of €817 — bringing the combined monthly obligation to €1,919.
Another debtor with combined AADE and EFKA debts of €25,000 up to December 31, 2023 and €5,400 in new overdue obligations from January 1, 2024 onward would enroll the €25,000 in the 72-installment plan at €408 per month, and settle the €5,400 under a 24-installment arrangement at €238 per month — resulting in a total combined monthly payment of €646.
Published in Parapolitika
