How will the 120 installments regulation change debt repayment?
The upcoming regulation will extend the maximum repayment period for overdue debts to the Independent Authority for Public Revenue (AADE) and social security funds (EFKA/KEAO) from 72 to 120 monthly installments. This change effectively shifts the repayment horizon from six years to a full decade. According to the Ministry of National Economy and Finance, this measure is a direct response to the energy crisis, which has significantly strained household budgets and business liquidity.
For many taxpayers, this extension offers a vital financial lifeline. By spreading the principal amount over a longer period, the monthly installment amount can decrease by nearly 40% compared to the current 72-installment scheme. The minimum monthly payment is expected to start at 30 euros, making the program accessible to a wider range of low-income debtors.
Comparative impact on monthly payments
To illustrate the impact, consider a debt of 3,600 euros. Under the existing 72-installment plan, a debtor might face a monthly payment of approximately 50 euros. By transitioning to the 120-installment plan, this monthly obligation could drop to 30 euros. While the monthly burden is lighter, it is essential to note that the total interest paid over the decade will be higher due to the extended duration.
Who is eligible for the new debt settlement scheme?
The new 120-installment framework targets specific categories of overdue debt while introducing new temporal boundaries. The primary eligibility criterion is that the debts must have been verified and declared overdue by December 31, 2024. This represents a one-year expansion compared to the previous 72-installment regulation, which only covered debts verified up to the end of 2023.
It is important to distinguish between old and new debts to avoid confusion during the application process. The 120-installment scheme is designed for legacy debts. It does not cover new debts incurred during 2025 or 2026. These more recent obligations must be managed through the standard AADE permanent settlement (págia rythmisi), which typically operates on a 24-installment basis.
- Verified Debts: Must be confirmed as overdue by December 31, 2024.
- Social Security: Includes obligations to EFKA and KEAO.
- Exclusions: Debts already included in other active settlement schemes as of September 30, 2026, are ineligible for this specific transition.
How can taxpayers apply for the 120 installments?
The application process is entirely digital and will be managed through the myAADE platform using TAXISnet credentials. The transition from 72 to 120 installments is not automatic; taxpayers currently enrolled in the 72-installment plan must proactively submit a new electronic application once the system opens in mid-November 2026.
The digital interface is designed to provide transparency, allowing users to simulate their new financial commitments before final submission. The process follows a structured sequence:
- Access: Log in to myAADE via TAXISnet.
- Selection: Navigate to the new 120-installment application within the debt settlement section.
- Review: The system will display eligible debts or the remaining balance from an existing 72-installment plan.
- Simulation: The user selects the number of installments (up to 120). The platform will then display the new monthly amount, the interest burden, and the total repayment sum.
- Finalization: Upon submission, the new plan replaces the old one.
Critical activation requirement
Submitting the application is only the first step. The new settlement and its associated legal protections (such as the suspension of seizures or auctions) are not activated immediately upon submission. To fully implement the new plan, the taxpayer must pay the first installment within three working days of the application. Failure to make this initial payment will result in the application being voided.
What are the financial trade-offs of choosing longer terms?
Choosing the 120-installment option is a strategic decision that balances immediate liquidity against long-term interest costs. The primary benefit is the reduction in monthly cash outflow, which can prevent defaults and the loss of the settlement status. However, the extended duration significantly increases the total amount of interest paid to the state.
A detailed comparison helps illustrate this trade-off. For a debt of 40,000 euros, the differences between repayment durations are stark:
| Repayment Term | Monthly Installment | Total Interest (approx.) | Total Repayment |
|---|---|---|---|
| 60 Months (5 years) | 764 euros | 5,820 euros | 45,820 euros |
| 72 Months (6 years) | 653 euros | 7,026 euros | 47,026 euros |
| 120 Months (10 years) | 434 euros | 12,045 euros | 52,045 euros |
As shown, while the 120-month plan reduces the monthly payment by over 300 euros compared to the 60-month plan, the total interest cost more than doubles. Debtors should use the myAADE simulation tool to weigh whether the monthly "breathing room" justifies the additional cost of the debt over the long term.
What protections do these settlements provide?
Enrolling in a valid debt settlement provides immediate legal and financial safeguards for both individuals and businesses. One of the most significant advantages is the prevention of enforcement measures. Once a taxpayer is actively participating in a settlement, the state is legally required to suspend ongoing collection actions.
These protections include:
- Freezing of Accounts: The settlement can "unfreeze" bank accounts that were previously blocked due to tax arrears.
- Auction Suspension: It halts the process of forced auctions of property or assets.
- Control of Assets: It allows debtors to regain control over their payroll and property management, provided they maintain consistent payments.
However, these benefits are conditional. Debtors must remain consistent with their payments and avoid accumulating new, unmanaged overdue debts. If a debtor falls behind or incurs new debts that are not covered by a settlement, they risk losing the protections of the current plan and facing renewed enforcement measures.
Frequently asked questions
Can I switch to 120 installments if I am already paying 72?
Yes, you can transition from a 72-installment plan to the 120-installment plan, but it is not automatic. You must log in to myAADE in November 2026 and submit a new application to recalculate your remaining balance over the longer period. You must also pay the first installment within three days.
Will the new regulation cover debts from 2025?
No, the 120-installment regulation is specifically for debts verified through December 31, 2024. Any debts generated in 2025 or later are considered new obligations and must be handled through the standard permanent settlement (págia rytmisi) procedures rather than this specific extraordinary measure.
What happens if I miss my first payment under the new plan?
If the first installment is not paid within three working days of submitting your application, the new settlement will not be activated. The application will be considered void, and you will not receive the legal protections or the recalculated monthly installments associated with the 120-month plan.
Is there a minimum monthly payment amount?
Yes, the regulation stipulates a minimum monthly installment of 30 euros. This floor is intended to ensure that even those with very large debts can manage small, consistent payments that contribute to the gradual reduction of their total liability.
Does this settlement prevent all future debt collections?
It prevents collections on the specific debts included in the settlement, provided you remain compliant. However, it does not cover future debts. You must ensure that any new tax or social security obligations are either paid on time or included in separate, appropriate settlement plans to avoid losing your current protections.
Key takeaways
- The 120-installment plan extends the repayment period from 6 to 10 years.
- Eligible debts must have been verified as overdue by December 31, 2024.
- Monthly installments can decrease by up to 40% compared to the 72-installment plan.
- The minimum monthly payment allowed under the new scheme is 30 euros.
- The transition requires a new digital application and payment of the first installment within three days.
Conclusion
The expansion of the Greek debt settlement framework to 120 installments represents a significant shift in the state's approach to managing arrears. By prioritizing monthly liquidity, the measure offers substantial relief to taxpayers struggling with the cumulative effects of the energy crisis. However, the increased interest burden associated with a ten-year repayment period requires careful financial planning. Debtors are encouraged to use the digital simulation tools provided by AADE to balance the immediate benefits of lower monthly costs against the long-term cost of credit, ensuring a sustainable path toward full debt clearance.
