The clock is ticking for individuals and businesses with outstanding debts to municipalities. Today marks the last chance to take advantage of a repayment plan of up to 60 installments, with surcharges slashed by as much as 95%.

The scheme covers debts confirmed by August 31, 2024, and can be activated through an application submitted to the relevant municipal authority or its legal entity by November 30, 2024.

All types of municipal debts can be settled through this plan, payable in up to 60 equal monthly installments—except for the final payment, which may be lower. The minimum monthly installment is set at €50.

Eligible debts include those currently suspended, previously included in another repayment plan, or pending judicial confirmation—provided the debtor withdraws any legal claims.

The lump sum or the first installment must be paid within three working days of the approval notification. Subsequent payments are due by the last working day of each month. Any late payments will incur a 5% surcharge, effective from the day after the deadline. However, if a debtor chooses to pay the remaining balance in full, they will receive proportional relief from penalties and surcharges.

For vulnerable debtors, surcharges, interest, and penalties are reduced by 95% if the debt is settled in a lump sum or by 75% if paid in 13 to 60 installments.

Additionally, municipal water and sewage utility (DEYA) debts will be offset against municipal obligations without requiring tax clearance. Debtors can regain access to their bank accounts by paying 5% of their outstanding amount for debts up to €5,000 or 10% for debts exceeding that amount. This also temporarily suspends enforcement actions—except for third-party seizures.

For debts exceeding €10,000, applicants may seek inclusion in the out-of-court debt settlement mechanism. The deadline is fast approaching—this is the final opportunity for those looking to restructure their obligations and avoid severe consequences.