Update on the anticipated 120-instalment arrangement
According to the public announcements made to date, a new arrangement for the settlement of tax debts in between seventy (70) and one hundred and twenty (120) monthly instalments is expected in the near future. Based on the announcements so far, the arrangement is expected to cover debts assessed by 31 December 2024 that have not been included in an arrangement by 30 September 2026.
An arrangement allowing the payment of debts in up to seventy-two (72) monthly instalments is currently in force. The announced new arrangement of up to one hundred and twenty (120) instalments has not yet been incorporated into published legislation.
At present, neither the final legislative text for the new arrangement nor the relevant circular or other required implementing regulations and administrative guidance has been published. Accordingly, the announcements to date, including the range of between seventy (70) and one hundred and twenty (120) instalments and the above-mentioned time-related eligibility conditions, are not final. Based on the announcements to date, a transition from the current arrangement of up to seventy-two (72) instalments to the new arrangement of up to one hundred and twenty (120) instalments is expected to be available upon submission of a new application. However, the procedure, conditions and consequences of such transition have not yet been determined. It is not yet possible to confirm with certainty the debts that will qualify, the maximum number of instalments for each category of debt, any income or asset criteria, possible reinstatement conditions for previously lost arrangements, the minimum monthly instalment, applicable interest charges, or the deadline for submitting an application.
We are awaiting the publication of the relevant legislation and the implementing guidance of the Tax Administration in order to clarify the eligibility criteria, terms and application procedure. Until then, any reference to a specific number of instalments or particular eligibility requirements should be treated as indicative only and not as final.
New 72‑Installment Scheme for Tax and Social Security Debts
The government is expected to activate the platform for the new extraordinary 72‑installment debt settlement after mid‑June. The measure applies to overdue debts to the Tax Authority and EFKA that were confirmed up to December 31, 2023 and remained unsettled until April 21, 2026. A key requirement for eligibility is that taxpayers must have paid or arranged all debts created after January 1, 2024.
Key Features of the Scheme
- Up to 72 monthly installments with an annual interest rate of 5.84%.
- Minimum monthly payment: €30.
- Example: A debt of €15,000 results in a monthly installment of approximately €280.
- No write‑off of surcharges or penalties, unlike previous settlement programs.
Benefits for Debtors
- Immediate tax and social security clearance.
- Suspension of seizures and auctions.
- Possibility to lift existing seizures with a 25% down payment of the total debt.
Reasons the Settlement May Be Lost
- Failure to pay two consecutive installments.
- Failure to submit tax or insurance declarations within three months of their deadline.
- Creation of new overdue debts for more than two months.
What Taxpayers Should Do Before the Platform Opens
- Check outstanding debts through myAADE and KEAO.
- Settle or arrange all debts created after 1/1/2024.
Reactions and Next Steps
Professional associations are already requesting improvements, such as lower interest rates, more installments, and the return of surcharge write‑offs, arguing that without meaningful incentives the scheme may fail—similar to the previous 24‑installment program. The Ministry of Finance considers the measure a balanced approach between supporting debtors and maintaining fiscal stability. Its effectiveness will depend on how many citizens can remain consistent over time.
