Greece’s Independent Authority for Public Revenue (AADE) is sending tax notices to 55,000 retirees who received retroactive pension payments in 2020 but failed to declare them to the tax authorities. With the statute of limitations on tax cases set to expire at the end of the year, the tax administration is accelerating its cross-checks and calling on those liable to file amended tax returns and settle their outstanding bills, which exceed €100 per case.
For those unable to pay their outstanding tax debt in a single lump sum, repayment is available in up to 72 interest-bearing monthly installments. The minimum monthly installment is set at €30, meaning that to qualify for the maximum 72 installments, the total debt — including interest — must amount to at least €2,160. For smaller debts, the number of available installments is reduced proportionally.
According to AADE data, of the approximately 878,000 taxpayers who received retroactive payments in 2020, some 761,000 — or 87% — have already filed the required income tax returns. For the remainder, the tax authority conducted electronic cross-checks to identify cases where additional tax is owed. These checks revealed that nearly 55,000 taxpayers still have outstanding obligations with the tax office, with an estimated tax liability of at least €100 each.
The response to the initial electronic notifications shows that approximately three in ten taxpayers who were notified have already filed an amended return and settled their tax liability. For those who continue to ignore the notices, AADE is preparing a new round of reminders, which will also include direct phone calls to those liable, in order to resolve all pending tax matters before the end-of-year deadline.
According to AADE figures, around 878,000 taxpayers received retroactive payments in 2020. Of these, 761,000 — approximately 87% — have submitted the required income tax declarations. Electronic cross-checks were carried out for the remaining taxpayers to identify cases where additional tax is due. These audits revealed that nearly 55,000 taxpayers still have unresolved issues with the tax office. The response to the initial notifications indicates that roughly three in ten of those contacted have already filed an amended return and proceeded with payment.
Retirees: How to declare retroactive pension payments
Amended tax returns must be filed electronically, and taxpayers are required to select the tax year to which the income relates — not the year in which the payment was actually received.
Specifically:
Separate return for each tax year: Retroactive payments must be declared through an amended return for the specific tax year they relate to. For income pertaining to 2020, taxpayers must select tax year 2020 — that is, the return originally filed in 2021.
Online process: For tax years from 2015 onwards, taxpayers must log in to AADE’s income tax return platform, select “Amended Return,” and then choose “Retroactive Payments Declaration E1.”
Pre-filled amounts: Retroactive payment amounts are automatically pre-filled in the relevant fields of the declaration. No changes can be made to other details of the original return through this specific process.
What payments are covered: The declaration requirement covers retroactive pay arising from court rulings, legislative settlements, collective labor agreements, as well as delayed payments of salaries, pensions, or benefits.
