The Independent Public Revenue Authority (Independent Public Revenue Authority (ADEA) is proceeding with the systematic recording and management of overdue debts to the Public Sector, to enhance efficiency in the collection of public revenues and to capture a realistic economic picture of the country. According to the latest available data, the total amount of overdue debts amounts to approximately 108.4 billion euros, putting a significant burden on the state budget and financial management.

Of the total overdue debts, more than €10 billion are classified as uncollectible. These are mainly claims from bankrupt companies, deceased taxpayers without heirs or debtors without registered assets. Already, an amount of €26.3 billion has been included in the special register of irrecoverable debts of the ADEA to rationalise the recording and management of these liabilities. The inclusion process is expected to be completed by the end of 2025, temporarily “freezing” the relevant liabilities to focus collection efforts on debts with realistic recovery potential.

Inclusion in the registry, under the Public Revenue Collection Code (PRC), requires the full exhaustion of the debtor’s and co-debtor’s asset search capabilities.

• The key criteria include:
• * Absence of recorded property or claims from third parties
• * Submission of criminal charges where required
• * Objective impossibility of collection
• * Low value property (less than 5% of the basic debt, with a maximum of EUR 100,000 for real estate and EUR 30,000 for movable property)

The inclusion procedure varies depending on the amount:

• • For debts up to 300,000 euros, the local tax and customs services are responsible
  • For amounts from EUR 300,000 to EUR 3 million, the approval of the Governor of the AADE is required
  • For debts exceeding EUR 3 million, the decision is taken by the Governor on the recommendation of the Operational Unit for Recovery

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The designation of a debt as irrecoverable does not imply its cancellation, but the suspension of recovery measures for up to one decade. The State reserves the right to review the debt in the event of a change in the data (e.g., identification of property), in which case the debt is “revived” and becomes due again.

• • On entry in the register:
  • The limitation period for the debt is suspended
  • The issue of tax certificates is suspended

•  Accounts, safe-deposit boxes, and other investment instruments shall be frozen
• Offsets and seizures are allowed in the event of the identification of data

At the same time, the AADE is intensifying collection actions for the remaining overdue debts, which are estimated at around 81 billion euros. A collection target of at least €3 billion has been set for 2025, with targeted actions such as making phone calls to 60,000 debtors.

Repayment arrangements are also underway, with particularly favourable terms:

• To municipalities: Up to 60 instalments, minimum amount of 50 euros per instalment, and exemptions from surcharges up to 95% for vulnerable groups
• To the tax authorities: Fixed interest rate until March 2025 – 4.34% for up to 12 instalments, 5.84% for more than 12, and 7.34% for a second arrangement with more than 12 instalments

Debtor disclosure

In cooperation with e-EFKA, the AADE will publish updated data on overdue debts on 30 June 2025. The list will include debts of more than €150,000 that remain unpaid for more than one year. This action is aimed at enhancing transparency and citizens’ confidence in the tax system.

A comprehensive policy for the management of overdue debts constitutes a key pillar for fiscal stability and strengthening tax compliance. The AADE continues to implement targeted actions, strengthening collection tools, to secure public revenues and support the Greek economy.