Repayment of old debts to the tax authorities and social security funds will now be spread over up to ten years, rather than six.
In October, Minister of National Economy and Finance Kyriakos Pierrakakis is expected to submit to parliament a provision increasing the number of instalments under the special debt-settlement plan for AADE and EFKA/KEAO debts from 72 to up to 120. The deadline for applying to join the plan, which would normally have closed in December, will also be extended to mid-2027.
The aim is to pass the provision in the first ten days of November, allowing the new debt-settlement plan to open in mid-November. Those already enrolled — or who join the 72-instalment plan in October — will also be able to transfer to it.
For these debtors, the instalment will be recalculated under the plan they choose for their remaining balance, reducing their monthly payment accordingly.
Those who choose to join the 72-instalment plan now, with the prospect of moving to 120 instalments from November, will pre-empt any seizures that may be planned against them. They will also immediately halt any that may already have begun, “freeing up” bank accounts, suspending auctions or other enforcement measures, and regaining control of their payroll and assets.
More breathing room to repay
With 120 instalments and monthly payments up to 40% lower than under the existing special 72-instalment plan, more debtors will be able to keep up with their old and new debts with greater confidence. Their monthly payments will be considerably smaller, starting at €30.
The change gives debtors an additional four years to repay: the plan’s duration will increase from six years to as much as ten.
For hundreds of thousands of debtors, monthly payments could fall by nearly 40% compared with the existing 72-instalment plan, making it easier to keep to their chosen payment schedule consistently through to the end.
For example, on a debt of €3,600, extending repayment from 72 to 120 instalments could reduce the monthly payment from €50 to €30. The amount is subject to an interest rate of 5.84%, the same rate as under the standard 24-instalment plan.
Who can apply, and how
The extension from 72 to 120 instalments was prompted by the duration and severity of the energy crisis, which, according to the Ministry of National Economy and Finance, “placed a significant burden on household budgets and business operations, limiting the ability to service debts accumulated in previous years”.
The new framework is intended to cover old overdue debts assessed by 31 December 2024, extending by one year the cut-off under the existing 72-instalment plan, which covered debts through the end of 2023.
In practice, new debts incurred last year or this year will not be eligible. These will have to be included in AADE’s standard plan for current tax debts.
However, the move from 72 to 120 instalments will not happen automatically. Those already enrolled in an active 72-instalment plan will have to submit a new online application through the AADE platform when the new service goes live, so that their outstanding balance can be recalculated over up to 120 monthly payments.
In other words, the outstanding balance will not automatically be split into 120 instalments, nor will the payment change without action by the taxpayer.
The process is expected to work as follows:
The debtor will log in to myAADE using their personal TAXISnet credentials.
They will select the new special 120-instalment plan, which will appear in the debt-settlement section in November, after the law is passed.
The service will show the debts eligible for inclusion or, for those already on the 72-instalment plan, the outstanding balance that can be transferred to the new arrangement.
The taxpayer will choose the number of instalments, up to the maximum of 120. Before submitting the application, their screen will show the new monthly payment, the payment schedule and the total amount to be repaid based on their choice.
Once the application is submitted, the new plan will be created. The existing 72-instalment plan will be replaced by the new 120-instalment plan for the amount being transferred.
However, joining the plan and gaining its benefits will not take effect automatically upon submission of the application. The debtor will have to pay the first instalment within three working days of applying.
The option to switch will apply only to debts covered by the 72-instalment plan. By contrast, debts owed by those who were in other active payment plans on the date the measure was announced (30 September 2026) will be excluded.
The process, step by step
In the new 120-instalment service that will be launched on myAADE and KEAO, taxpayers will see more than just the amount of their debt or instalment. They will be able to review and choose the following:
Eligible debts: which of their assessed, overdue debts they can include
Number of instalments: how many instalments to choose, up to the maximum allowed under the plan (120 instalments, with a minimum of €30 a month)
First and subsequent instalment amounts: the service will show the payment resulting from each repayment term, including the corresponding interest charges, so taxpayers can judge whether the final monthly payment will be genuinely affordable
The payment schedule shown by the service before final confirmation is crucial: taxpayers must compare the reduction in their monthly payment with the longer repayment period and additional interest costs.
When more instalments make sense — and for whom
The 120-instalment option is mainly for those who find the 72-instalment plan unaffordable and risk losing their place in it. If someone can genuinely afford a higher monthly payment, choosing fewer instalments will reduce the total interest cost.
Those already on a 72-instalment plan need not rush to act before seeing the new payment schedule. Through the service, they will be able to compare:
their current monthly payment,
what it would be under the new 120-instalment plan,
how much extra interest they would pay by the time the debt is fully repaid.
In all cases, the new plan takes effect only if the first instalment is paid on time. If it is not paid by the deadline, the application will not result in an active plan. Applicants therefore need not only to submit the application but also to have enough money available to pay the first instalment immediately.
For example, on a debt of €40,000:
under a six-year plan (72 instalments), the first and each subsequent monthly payment would be €653, with interest totalling €7,026 through 2032.
under a five-year plan (60 instalments), the payment would be €764 and interest would total €5,820 through 2031.
under a ten-year plan (120 instalments), the monthly payment would fall to €434, but total interest would reach €12,045 by 2036.
The lower payment therefore gives the debtor significant breathing room each month — and even more over the course of a year — but by the end of the plan they will have paid a total of €52,045 on an initial debt of €40,000.
Whatever option they choose, debtors will still be liable for current and future debts. Debts incurred from 2025 onwards will have to be paid or included separately in the standard 24-instalment plan. Debtors must also avoid accumulating new overdue debts that are not covered by a payment plan, or they will lose their place in the arrangement.
SOURCE: AMNA