Thousands of properties seized over unpaid tax debts are expected to return to the market under a new decision by Greece’s Independent Authority for Public Revenue (AADE), which establishes a framework allowing owners to sell confiscated real estate while settling their liabilities to the state.
The measure is designed to remove long-standing obstacles that have prevented transactions from going ahead, even when buyers were available and a sale would have enabled the government to recover at least part of the outstanding debt. Instead of blocking transfers altogether, the new process allows a seized property to be sold, provided that a portion of the sale proceeds is automatically allocated to the tax authorities.
Under the new rules, the tax administration may lift the seizure following an application by the debtor, provided several conditions are met. At the time of the transaction, the seller must satisfy the requirements for obtaining a tax clearance certificate or a certificate of outstanding liabilities.
In addition, the agreed sale price cannot be lower than the property’s assessed market value at the time the seizure was imposed. Where the market value is below the official taxable value, the latter will apply. For seizures dating back more than five years, the owner must submit a valuation prepared by an independent certified appraiser.
A key feature of the framework is the mandatory withholding of part of the purchase price by the notary handling the transaction. The withheld amount will be transferred directly to the tax administration and applied toward the outstanding debt.
The percentage will be determined according to the taxpayer’s compliance record and the collectability of the remaining balance, but it cannot fall below 25% of the total debt. If the calculated withholding exceeds the sale price, the entire proceeds will be transferred to the state, while the seizure will still be lifted for the property being sold.
The reform aims to accelerate debt collection, unlock frozen real estate transactions and give indebted property owners a practical route to dispose of their assets while restructuring their remaining obligations.
