Greece is set to increase the protected bank account threshold from €1,250 ($1,445) to €1,600 ($1,850), allowing debtors an additional €350 ($405) per month to remain shielded from account seizures. The measure, announced in Parliament by Finance Minister Kyriakos Pierrakakis, is expected to go into effect on July 1. It is part of a wider government initiative aimed at easing financial pressure on households and businesses with outstanding debts.
The current exemption limit has remained unchanged since 2014, when it was introduced during the fiscal crisis. Twelve years on, the government says the revision reflects both rising living costs and the need to update Greece’s debt enforcement system. Pierrakakis noted that the new ceiling marks a 28 percent increase, outpacing cumulative inflation over the same period, which he estimated at 20.8 percent.
How the new protected bank account threshold in Greece will work
The protected bank account limit sets the amount of money a debtor can keep accessible in a designated account, even when seizure procedures are in place. Under the new rules, balances of up to €1,600 ($1,850) in a declared protected account will be exempt from seizures related to debts owed to the state. Each individual is allowed to declare one protected account at a single credit institution through the Independent Authority for Public Revenue (AADE).
In practice, if a debtor has €1,500 ($1,735) in their protected account, the entire amount remains untouched. If the balance increases to €1,900 ($2,198), authorities may only seize the €300 ($347) that exceeds the €1,600 ($1,850) threshold. The measure does not cancel debts or suspend enforcement actions. Instead, it raises the amount individuals can hold onto for everyday expenses and essential financial obligations.
Which debtors in Greece will benefit from the new bank account limit?
The change to Greece’s protected bank account threshold is expected to benefit individuals whose accounts are subject to, or at risk of, seizure due to overdue obligations. This includes salaried employees, pensioners, self-employed professionals, and other taxpayers who need greater protection for funds held in their declared accounts.
More than two million people in Greece currently have outstanding debts to the tax authorities. Of these, around 1.7 million have already been affected by enforcement measures such as account seizures, freezes, or other compulsory collection actions.
For those whose monthly income or deposits exceed the existing €1,250 ($1,445) limit, the increase could offer up to €350 ($405) in additional protected funds each month, easing pressure on everyday finances.
Measure tied to Greece’s private debt strategy
The increase in the protected bank account threshold is part of a broader policy package aimed at tackling private debt. The provision is expected to be included in the government’s upcoming bill on illegal gambling, which is currently under public consultation.
Private debt in Greece stands at 94.5% of GDP, below the European Union average of 121.4%. Authorities say the measure is designed to provide additional relief while maintaining enforcement mechanisms for overdue obligations.
The move comes as Greece continues to report stronger banking sector indicators. Non-performing loans in the country’s banking system have declined sharply to 3.3%, down from 48.5% in 2016. At the same time, debt arrangements totaling €6.8 billion ($7.86 billion) have been completed in 2025, reflecting ongoing efforts to restructure and manage outstanding liabilities across households and businesses.
Bank account seizures could be lifted
The same policy package introduces a separate provision for taxpayers whose bank accounts have already been seized. Under the proposed framework, debtors will be able to request the lifting of a seizure if they pay 25% of the principal debt upfront and agree to a repayment plan for the remaining balance. This option would be available once per debtor and is intended to encourage a return to regular repayments.
The new approach effectively replaces the “gradual protected account system” introduced in 2019, which was never implemented in practice. That model envisaged a step-by-step increase in protected funds for debtors who consistently met repayment obligations, but it was ultimately deemed too complex and remained inactive.
Implementation details still pending for Greece’s new bank account limit
The main outstanding issue is how the new €1,600 ($1,850) threshold will be applied to bank accounts that have already been declared as protected.
Authorities are expected to provide further clarification on the implementation process, including whether existing declarations submitted through AADE will be updated automatically or whether taxpayers will need to take additional steps to maintain or adjust their protected account status under the new regulations.
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