Thousands of households, self-employed professionals and businesses will be given the opportunity to repay old debts to the tax authorities and social security funds in up to 120 monthly instalments. Around one million debtors – individuals and legal entities – with total debts of €95 billion will be able to spread their repayments over a period of ten years. At the same time, a new Unified Digital Payments Portal is being developed. Through a dedicated mobile app, it will display all outstanding debts on a single screen, helping those who have lost track of whom they owe money to and what they are paying.

The online platform for applications is expected to become operational in mid-November, once the bill drawn up by the Ministry of National Economy and Finance has been passed by Parliament.

Who is eligible?

The arrangement is an exceptional measure, and the deadline for submitting applications will expire on 30 June 2027. It covers certified overdue debts to the Independent Authority for Public Revenue (AADE) and the National Social Security Fund (EFKA) which had fallen overdue by 31 December 2024. This represents a significant extension compared with the previous 72-instalment arrangement, which covered debts up to the end of 2023.

Another essential requirement is that debts incurred after 1 January 2025 must have been settled, either through a lump-sum payment or under the standard arrangement of 24 or 48 instalments. Debtors must also have submitted their income tax returns for the five-year period up to the 2024 tax year and must not have an irrevocable conviction for tax evasion or smuggling.

How to apply

Applications will be submitted online through myAADE, using personal TAXISnet credentials. Applicants will be able to view their eligible debts, choose the number of instalments – up to the maximum of 120 – and complete the application electronically. The system will show them the monthly payment associated with each option, allowing them to choose the arrangement that best matches their financial means and needs.

However, acceptance into the arrangement is not completed simply by submitting an application. For the arrangement to take effect and provide protection in respect of tax debts, the first instalment must be paid within three working days. Subsequent payments must be made by the last working day of each month.

A second chance for those already on the 72-instalment plan

The new provision will allow those already enrolled in the 72-instalment arrangement to transfer their outstanding balance to the new scheme. The transfer will not take place automatically: a new online application will be required, so that the unpaid amount can be recalculated and spread over up to 120 instalments.

According to information, around 35,000 debtors already enrolled in the previous scheme will be able to take advantage of this option. For them, the main benefit will be a reduction in their monthly instalment, in exchange for a corresponding extension of the repayment period.

What debtors stand to gain

Once the arrangement is activated, seizures, auctions and all other compulsory debt collection measures will be suspended. The main benefit is a lower monthly financial burden, as the repayment period is almost doubled. By way of example, for a debt of €3,600, the monthly instalment could fall from around €50 under the 72-instalment scheme (before interest) to €30 with 120 instalments.

The relief is more substantial for larger sums. For a debt of €5,000, the monthly payment falls from around €82.50 to €55, while for a debt of €10,000 it drops from approximately €165 to €110. For a debt of €25,000, the instalment is reduced from around €412 to €276, before interest.

The cost of extending the repayment period

A lower monthly instalment does not mean a cheaper repayment overall. The principal debt will accrue interest at a fixed annual rate of 5.84%. As a result, the longer the repayment period chosen by the debtor, the higher the total interest payable.

For example, on a debt of €10,000, the total amount repaid comes to approximately €11,878 over 72 instalments, compared with €13,226 over 120 instalments – a difference of around €1,348. Similarly, for a debt of €20,000, the total repayment amounts to approximately €23,756 over 72 instalments and €26,452 over 120 instalments.

In other words, the new scheme offers greater liquidity and less pressure on monthly finances, but it also entails additional interest costs for those who opt for the maximum repayment period.

When the arrangement can be lost

Joining the scheme does not cover new tax and social security liabilities. Debtors must continue to pay their current obligations on time or risk losing the arrangement.

It will also be cancelled if two consecutive monthly instalments are not paid, or if the final two instalments are delayed by more than two months. The arrangement will also be lost if debts excluded from it are not settled within one month of joining, or if new overdue debts arise and are not paid or placed under a repayment arrangement within three months of their due date.

If the arrangement is lost, the outstanding balance becomes immediately payable. The debtor will no longer be able to obtain a tax clearance certificate, while criminal proceedings and compulsory collection measures, including seizures and auctions, will resume.

All debts on one screen

At the same time, under the same bill, the Ministry of National Economy and Finance is promoting the creation of a Unified Digital Payments Portal. The aim is to bring together, by the end of the year, debts owed to tax offices and EFKA in a single online environment, so that citizens no longer have to look up their liabilities separately across different applications.

Using their TAXISnet credentials, individuals will be able to access the portal from a computer, tablet or mobile phone, view their total outstanding debts, find out which repayment options are available and proceed directly to the relevant payment systems. The portal will not replace existing payment tools, but will serve as a central point for information and guidance.

For around one million debtors with €95 billion in old debts, the combination of the 120-instalment scheme and a unified digital overview of their liabilities could make it easier to manage their repayments.