Greece has introduced a new framework that allows certain properties seized over unpaid tax debts to be sold without requiring owners to repay their full liabilities before completing the transaction.
Under the new rules, Greece’s Independent Authority for Public Revenue, known by its Greek acronym AADE, may lift a property seizure when the owner pays part of the outstanding debt directly from the sale proceeds.
The measure addresses a longstanding obstacle in Greece’s real estate market. Many transactions had stalled because owners could not settle their entire tax debt before selling the assets they needed to finance those payments.
Greece allows partial debt repayment for tax-seized properties
The decision implements Article 47A of Greece’s Code of Tax Procedure, introduced under Law 5293/2026.
Previously, owners generally had to repay the full debt before authorities would lift a property seizure. The new framework allows the tax authority to approve a release after a partial payment, provided the applicant meets all legal, financial and valuation requirements.
The rules cover property sales and other transfers for consideration, meaning transactions in which the owner receives payment in exchange for the property.
Approval is not automatic. The tax authority will assess the property’s value, the agreed transaction price, the taxpayer’s compliance history and the likelihood of recovering the remaining debt.
How property owners can apply
Applications must be submitted electronically through the “My Requests” service on the myAADE tax platform.
Applicants should follow this route:
myAADE Digital Services → My Requests → Judicial Matters, Enforcement Measures and Debts → Release of a Seizure Imposed on Real Estate Ahead of a Transfer for Consideration.
When the seizure is lifted, the owner must qualify for either a tax clearance certificate or a certificate of outstanding debt under Article 12 of the Code of Tax Procedure. These documents establish the taxpayer’s outstanding liabilities and the amount the notary must withhold from the transaction proceeds.
Sale price must reflect the property’s value
The agreed sale price cannot fall below the property’s commercial value as assessed when the seizure was imposed. When the property’s official tax-assessed value, known in Greece as its “objective value,” is higher, the seller must set the transaction price at or above that amount.
The requirement aims to prevent owners from transferring properties below their recognized value and reducing the funds available to cover unpaid taxes.
At least 25 percent goes toward the tax debt
The notary overseeing the transaction must withhold part of the sale proceeds and transfer the funds directly to the tax authority. The payment must equal at least 25 percent of the outstanding balance covered by the seizure.
The authority may require a higher amount after reviewing the taxpayer’s compliance record and the prospects of recovering the remaining debt. When tax-clearance or debt-certificate rules require a larger payment, the notary must transfer the higher amount.
How Greece determines withholding amounts for tax-seized properties
Once the applicant has met all the requirements, the tax authority will issue a formal decision lifting the seizure.
The decision will be sent to the taxpayer together with a document explaining how officials assessed tax compliance and the likelihood of collecting the remaining debt.
The explanation will also show how the authority calculated the percentage of the proceeds that the notary must withhold.
Reform could unlock frozen property sales
The previous system created a financial deadlock for many owners. They often needed to sell a property to repay their tax debts but could not complete the transaction while the seizure remained in force.
The new rules allow qualifying owners to settle part of their debt directly from the sale proceeds and complete the transaction without full repayment in advance. The framework could give indebted property owners greater flexibility while preserving the state’s ability to recover unpaid taxes.
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